Further support for business development introduced
11:17 | 09/06/2017

VGP – PM Nguyen Xuan Phuc has recently issued Directive 26/CT-TTg on beefing up the growth of local companies with a special emphasis on input cost reduction, a move to continue implementing Resolution 35 on business support and development efficiently.

Illustration photo

The Directive highlighted the orientation of the constructive Government which serves enterprises and creates favorable conditions for local businesses. It also states five specific solutions to assisting enterprises in a more effective manner.

Connected procedures

Specifically, the PM assigned the Ministry of Planning and Investment (MoPI) to work with relevant agencies to perfect the Law on SMEs support and guiding decrees in Q2, 2017; work with other ministries, agencies, and localities to enforce policies and programs in support for small- and medium-sized enterprises; and compose decrees with a view to forging connected procedures on investment, land, construction and bidding, environment, and sumit them to the Government in Q3.

The MoPI was asked to work with relevant ministries, agencies, business associations, commercial banks to hold training supportive courses for SMEs to improve administrative competence and financial transparency to make it easy for access to credit; raise professional skills for staff of ministries, agencies, localities, and business associations; perfect the list of enterprises subjected to State capital withdrawal in the 2017-2020 period.

The Ministry of Finance (MoF) was instructed to review and amend regulations on connected tax and customs management with a view to cutting time and costs for business and report a bill on tax in Q3. The MoF was asked to work with related ministries, agencies, and localities to tighten management and collect tax; prevent losses; and research on simple accounting mechanisms; and review export codes then report outcomes in August, 2017.

Cutting fees to input costs of enterprises

The PM asked for completion of VAT refunds of at least 70% of procedures and better operation of the national single window.

The MoF was assigned to work with relevant ministries, agencies, and localities to review costs relating to input costs of enterprises, then report outcome to the PM this July; work with local authorities to pilot electronic invoices, electronic invoices in combination with tax codes; and connect information on retail sales of household businesses in Ha Noi and HCMC in 2018.

The Ministry of Natural Resources and Environment was urged to review, assess, amend, and supplement regulation on land reclamation, site clearance, land allocation, land lease, and access to land of SMEs; then report outcomes to the PM in Q4.

Favorable conditions for enterprises to access bank loans

The PM asked the Ministry of Justice (MoJ) to work with the Ministries of Natural Resources, and Construction, the State Bank of Viet Nam to review regulations on transaction registration with a view to creating favorable ways for enterprises and individuals to conduct mortgage loans at commercial banks in favor of business operation; perfect a report in July, 2017.

The MoJ was assigned to research and supplement Decree 22/2015/ND-CP, dated May 16, 2015 detailing a number of articles of the Law on Bankruptcy regarding asset management.

The Ministry of Transport is told to closely supervise the toll fee collection of build-operate-transfer projects, with an aim to make life easier for transporters.

Innovation and application of science and technology

The Ministry of Science and Technology is in charge of conducting measures to support enterprises while the State Bank of Viet Nam is asked to instruct banks to extend credits to bolster the growth of high-tech and clean agriculture.

The Ministry of Labor, Invalids, and Social Affairs is asked to review and propose policies on labor and wage in line with labor productivity  and social insurance in ASEAN 4 level in harmonization with business and employee interests.

The Ministry of Education and Training will review and streamline administrative procedures on investment licenses in education and encourage SMEs to open universities.  

Severe punishment for irresponsible and incompetent agencies

The PM also tasked ministries, agencies, and localities to enforce Directive 13/CT-TTg, dated June 10, 2015 on empowerment of leaders on administrative reform and impose severe punishment for irresponsible and incompetent agencies./.

By Kim Anh

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