The flame of reform to remain in 2022

Resolution 02 has been issued by the Government with the goal of continuing to improve the business environment and enhance the country’s competitiveness in 2022.

 

The resolution is expected to contribute to removing bottlenecks and opening up resources to support economic recovery and development after the Covid-19 pandemic. The outbreak of the Covid-19 pandemic in the past two years has had a heavy impact on businesses and people, and at the same time, has slowed down business environment reform. In the global rankings, some indicators of Vietnam in 2021 were not sustainable and many specific indicators were low or not improved, or even fell. For example, the innovation index decreased by 2 spots (from 42nd to 44th); sustainable development down 2 spots (from 49th to 51st); property rights dropped by 6 levels (from 78th to 84th); the property rights index decreased from 5,132 to 4,995 points from 78th to 84th, and the index of perceived corruption fell by 8 places (from 96th to 104th).


Resolution 02 was promptly issued by the Government in early 2022 with tasks and solutions focusing on two main goals: improving the business environment and enhancing national competitiveness in 2022. Economic expert Nguyen Dinh Cung said that the new resolution will inherit the previous Resolution 02, and has new content that is good for economic growth and recovery plan. For example, in terms of business conditions, the previous resolution mainly cut business conditions, but the new one reduced the list of conditional business. That's a good approach. The resolution also expands the market for factors of production.


Nguyen Minh Thao, Head of the Business Environment Reform Committee (Central Institute for Economic Management - CIEM), said that improving the business environment and enhancing competitiveness are new priorities in the Government's tasks assigned to ministries and agencies this year. Specifically, with the task of reducing the list of conditional businesses and reforming business conditions, the Government has assigned the Ministry of Planning and Investment to coordinate with ministries, agencies, and localities to research and review the list of conditional investment and business lines.


The treatment direction was determined from the beginning to narrow the scope of some professions; and remove the industry from the list if there are other more effective management measures. Along with that, is the control of the proposal for additional investment lines, conditional business, and new business conditions.

“This year, it will be necessary to complete the review and assessment of the list of conditional business and investment lines, which will serve as the basis for amendment of relevant legal documents. This requires ministries and branches to really get involved, with a different mindset,” Thao said.


For a long time, cutting sub-licenses and business conditions was a priority task. Since 2017, the Government has been directed to abolish and simplify 50% of investment and business conditions. By the end of 2018, the number of business conditions was cut by more than 50%. Thousands of unnecessary, unreasonable, unpredictable business conditions or those with excessive interference in production and business activities of enterprises have been abolished or simplified. As a result, the business environment changes in the direction of convenience, freedom, and safety for businesses. However, Dr. Nguyen Dinh Cung emphasized that it is important how the resolution is implemented. Without pressure from the Prime Minister, the society, and the business community, there would be no reform in the administrative apparatus.

Therefore, it is necessary to concretize the resolution into detailed tasks, to have a conductor presiding over the implementation.


Objectives and key contents of Resolution 02:

Resolution 02/NQ-CP sets specific targets for 2022: to improve the quality and ranking of the business environment and competitiveness indexes in sync with the improvement of national credit ratings of Moody's, S&P, and Fitch.


Regarding the country’s competitiveness 4.0 according to the World Economic Forum (WEF)'s ranking, it wants to achieve: to improve scores and maintain the ranking of the legal compliance cost index; raise the ranking of the corruption control index by 10 places; raise the ranking of the quality index of land administration by at least 1 spot; raise the ranking of the stock market capitalization index by 2-3 spots; and raise the ranking of the growth index of innovative enterprises by 2-3 levels. The goals set for 2025: to be named among the top 50 countries for the WEF’s competitiveness 4.0 index; in the top 40 countries for the United Nations sustainable development index; in the top 40 countries for WIPO’s innovation capacity index; and among the top 60 countries for the United Nations E-Government index.


The focus of reform for the period 2022-2025 proposed by the resolution includes: (i) Reform of management and specialized inspection of exported and imported goods; (ii) Elimination of barriers to business investment due to overlapping, conflicting, unreasonable, and different legal regulations; (iii) Reduction of the list of investment and business lines with conditions and reforming business conditions; (iv) Land and real estate registration reform; (v) Development of e-commerce and promote non-cash payments; and (vi) Continuation of support for businesses to restore production and business, and overcome the negative impact of Covid-19.


Source: CCIPV / Vietnam Net Global