Resolution 139/NQ-CP sets Action plan for enterprises’ costs cutting
On 9th November, 2018, the Government has issued Resolution 139/NQ-CP (Resolution 139) providing the Action plan for enterprises’ cost cutting, including costs for compliance with legal regulations in order to enter the Vietnamese market. The Government has requested Ministries, inter-ministerial agencies and local authorities to perform the simplification of 50% business and investment conditions, as set under Resolution 01/ND-CP dated 1st January 2018 of Government.The Resolution also targets to further reduce and simplify the reporting mechanism as required under Decision 559/QD-CP in 2017 and facilitate the establishment of National Public Service Server as under Resolution 36a/ND-CP to cut costs for both enterprises and state authorities.
The Ministry of Planning and Investment (MPI) will coordinate with other Ministries to amend the Law on Investment towards clarification of definition and meaning of “business condition” as the basis for assessment and monitoring the legal frame on business lines and conditions, to ensure the differentiated defining of business conditions and technical standards, standard technical requirements.
The MPI is also tasked to report on the legal framework related to the business lines and business conditions, provide recommendations to the National Assembly and Government to amend and supplement the list of business conditions in the Appendix of Law on Investment towards the removal of the business lines that will not affect the public interest, have no specific nature that can be otherwise managed by the Government, adjust the scope of monitoring for certain business lines having narrow impacts.
Simplification of forms, declarations on business registration, reduction of dossier documents in the change of business registration should be also executed. MPI will also coordinate with Ministry of Labour, Invalids and Social Affairs and General Department of Customs to build the single mechanism on business establishment registration, tax declaration, reports on human resource and the objects under the obligation of social insurance payment.
Ministry of Justice is tasked to increase the role of reviewing the draft legal regulations on business conditions to ensure they comply with Law on Investment 2014, and ensuring that there will be no unnecessary and unreasonable requests.
The Ministry of Construction will review, amend and supplement regulation to reduce administrative procedures on planning establishment, license for planning, procedures for construction license for the constructions serving manufacturing and trading purposes. The Ministry will also review these regulations in order to cut costs for compliance with regulations on constructions for manufacturing and trading. The Government also requests the Ministry of Public Security to review regulations on fire fighting and prevention towards clarification of regulations, removal of requirements for constructions that can share the fire fighting and prevention equipment, simplification of relevant regulations.
MPI will coordinate with Ministry of Construction and Ministry of Natural Resources and Environment to review regulations and to ensure the consistency in the order and procedures of issuing licenses for investment projects with the use of land, water, sea areas to have one single window and support investors and avoid duplications in administrative processes. The single window procedures include the steps: approval in principle for investment, demand of use of land, water or sea areas; planning, assigning or renting the land, water or sea areas (if any); issuing regulations guiding local authorities to execute the single window procedures related to investment, construction, land and environment matters.
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