Vietnam cuts through red tape in bid to unleash business spirit

By Nguyen Hoai   July 1, 2016 | 06:20 pm GMT+7

Vietnam is not the easiest place in the world to do business; it is ranked 93rd by the World Bank in its Doing Business 2016 report. The government is thus trying to make things a little easier by simplifying business licensing.

Vietnamese lawmakers are reviewing 50 new draft decrees on business conditions after cutting many complex regulations and rules, said Minister and Chief of the Government Office Mai Tien Dung at a press conference on Thursday.

The revised decrees are set to come into effect the following day, on July 1, after a week long deliberation.

Dung added that lawmakers will not simply bundle excessive licensing and regulations together and put them all into newly revised decrees.

Changes introduced under the new decrees are expected to reduce existing bureaucracy. Business licensing should be considered an important step towards unleashing the potential for more start-ups and act as a key to unlocking investment climate reform, the government said.

vietnam-cuts-through-red-tape-in-bid-to-unleash-business-spirit

Policymakers are discussing changes to decrees and the legal interpretation of the Business and Investment Law. The aim is to liberate the private sector's potential and facilitate economic and social development, said Chief of the Government Office Mai Tien Dung. Photo by N.H.

“We are determined not to leave any holes in the legal system, cutting down on unjustifiable business conditions, scrapping business permits and putting an end to interest groups,” said Minister Mai Tien Dung.

However, many have expressed their concerns that the decrees may have been drafted too hastily, and as a result, many “super-decrees” may be born.

The Vietnamese legal system employs a variety of legal documents including law, decrees, circulars, decisions and directives. These documents sometimes overlap each other.

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