Sub-licenses: Still a kind of weed to be swept through in overhaul
By Vu Minh
August 28, 2017 | 02:50 PM GMT+7
The struggle to abolish business licenses has lasted for decades but have yet to show the expected results. It is compared with a kind of weed, which aggressively grows and reproduces to hurdle the development of businesses.
(Photo: Internet)
Business conditions, also known as "sub-licenses", have always been a burden on businesses. One of the main reasons for the continued licensing process is thought to be the poor management of State agencies; especially the way of thinking "if I cannot control it, I might as well ban it."
Over the years, the process of reduction on business restrictions gradually came to the Law on Enterprises (2000) with a new way of thinking "people are allowed to do what laws do not prohibit.”
However, after hundreds of sub-licenses are removed, other types of business restrictions immediately appear. This is compared with a kind of weed, which aggressively grows and reproduces to hurdle the development of businesses.
Recently, with the constructive and action-minded perspective, the Government has demonstrated the determination to remove barriers that inhibit business operations. In 2016, with the publication of a dozen decrees on business conditions, more than 3,000 out of 7,000 sub-licenses were eliminated.
Then, at the July regular meeting, Prime Minister asked for a review of the Organization for Economic Cooperation and Development (OECD) market-based business conditions (which are the most normative criterion on the quality of legal documents).
The Ministry of Planning and Investment (MPI) is assigned to study the proposal to abolish the conditions that restrict the competitiveness. The MPI was also requested to coordinate with the relevant agencies to formulate a decree or a directive on control of business investment conditions. It should be submitted to Prime Minister in the last quarter of 2017.
On August 22nd, the MPI proposed to the Government to remove 1,930 business conditions.
This is a significant event which encourages the business community and investors and shows the great determination of the Government to create a favourable business environment in Vietnam.
On this occasion, the editorial board of TheLEADER held a special feature namely "TheLEADERs’ Cafe" on the topic “Sub-licenses”. This event had the presence of representatives from State management agencies, enterprises and economic experts.
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