Vietnam trade ministry slashes 675 business and investment conditions

The Ministry of Industry and Trade (MoIT) on Friday has decided to cut down more than half of the total business and investment conditions, from around 1,200 terms to just 675.

“It is such a breakthrough and it's beyond my expectations,” said Prime Minister Nguyen Xuan Phuc. More than half of the business conditions were cut, meaning there will be less administrative burden placed on businesses.

The move is a part of the ministry’s ongoing institutional reform to improve business climate, Minister Tran Tuan Anh commented.

A simplified inspection process will also be applied to a wide range of goods. Only products at high risk of violating food safety regulations will fall under customs’ specialized inspection. The Ministry of Industry and Trade will work with the Ministry of Health and the Ministry of Agriculture and Rural Development to later publish a list of exempted goods.

Accordingly, customs checks will take three to fours days less to clear, which will help save an estimated VND2 million ($100) per batch of goods.

However, a lot remains to be done to improve ease of doing business in Vietnam, which according to the World Bank, lags behind Singapore, Malaysia and Thailand. 

PM Phuc urged the ministry to accelerate privatization of state owned enterprises and come up with better solutions to deal with 12 long-term loss projects.

Meanwhile, businesses wish the ministry could reduce the time it takes to issue some certificates and provide better support.