Sub-licenses: Ministries are not to evade their responsibility

By Bach Duong - Aug 31, 2017 | 06:56 AM GMT+7

TheLEADERThis is the opinion of Tran Huu Huynh, President of Vietnam International Arbitration Center (VIAC), on the proposal of the Ministry of Planning and Investment (MPI) to eliminate obstructive sub-licenses for enterprises.

Sub-licenses: Ministries are not to evade their responsibility
Tran Huu Huynh, President of Vietnam International Arbitration Center (VIAC)

TheLEADER had a talk with Tran Huu Huynh on the proposal of clearing 1,930 business conditions (from now on mentioned as sub-licenses) for businesses.

Sir, what do you think about the proposal of clearing nearly 2,000 sub-licenses of the MPI?

Tran Huu Huynh: Regarding this proposal, over the past years, the Government and concerned agencies have not implemented this process effectively. This leads to the presence of 4,284 business conditions and 243 conditional investment businesses (according to a Central Institute for Economic Management – CIEM) report).

These conditions have created huge barriers to businesses, wasted their time and money, increased production costs and reduced profits. Hence, the economy will be negatively affected.

Therefore, I think this proposal is timely. If successful, it will certainly motivate enterprises.

To erase 2,000 business conditions, what should the Government and ministries do?

Tran Huu Huynh: First and foremost, ministries should urgently review the business conditions forced to erase. Then, these conditions should be classified to ministries or branches to place responsibility on the concerned agencies.

Second, to ensure the objectivity and practicality, the opinions of other organisations such as the Vietnam Chamber of Commerce and Industry (VCCI) should be considered. Recently, VCCI has made a comprehensive report on the recommendations of eliminating certain business conditions.

Also, the criteria for reviewing the conditions should be based on the recommendations of businesses. Any irreparable obstacles need to be submitted to the Government for a workable solution.

Previously, the Enterprise Law 2000 with the new way of thinking "people can do what the law does not prohibit," removing the sub-license has gradually been started. However, only after a short time that some sub-licenses were erased, others immediately appear. Do you think this time the Government will succeed?

Tran Huu Huynh: Removing 2,000 sub-licenses is a long process that requires drastic actions by the Government and ministries.

Previously, the elimination process was not efficient because we were not determined and there was no particular legal document. However, the situation has been much better now.

Accordingly, this movement is towards the goal of a “tectonic government”. Two recent resolutions (19 and 35) also propose to remove obstructive business conditions.

Also, nowadays, businesses are growing and raising their voice to the State agencies. Along with that is the power of the media and public opinion. Therefore, we can confidently say that, with the Government's determination, the target of clearing nearly 2,000 sub-licenses will be met.

Thank you, Sir!