Encouraging enterprises to develop

Thursday, 2017-05-04 17:53:52
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Small and medium-sized enterprises are afraid of ‘growing’. (Image for illustration)
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NDO – A report on Vietnam's provincial competitiveness index recently released by the Vietnam Chamber of Commerce and Industry (VCCI) showed that although significant efforts were being made by local governments to create favourable conditions for business activities, enterprises still face numerous obstacles in the business environment.

Unofficial fees have not shown signs of diminishing, and have even increased over the years. More than 11% of respondent enterprises said that, unofficial expenses accounted for over 10% of total revenue; and up to 65% of enterprises emphasised that being harassed while solving procedures is common.

Notably, the report also assessed that the medium and small-sized enterprises in Vietnam (accounting for 97.6% of enterprises) are afraid of ‘growing’. In fact, there is a concerning phenomenon that the larger the scale of enterprises, the more ‘burdens’ of inspection they have to face. As the enterprises develop their scale, the cost for implementing administrative procedures increase, hence they face more risks.

At a conference with enterprises in 2016 themed ‘Vietnamese enterprises - the driving force for the country’s economic development’, Prime Minister Nguyen Xuan Phuc asked ministries, branches and localities to continue to enhance the building and development of institutions, creating favourable conditions for investors and enterprises; focus on building laws supporting small and medium-sized enterprises; thoroughly settle arising problems related to investment procedures and business registration, particularly foreign investors and economic organisations with foreign investment.

The State and localities throughout the country should also pay adequate attention to promoting the spirit of starts-up in many forms. Therefore, it is highly necessary to simplify and rationalise business conditions; resolutely abolish the inappropriate conditions; strictly prohibit the issuance of new business conditions, particularly illegal licenses, which causes difficulties for enterprises. The inspection and supervision should aim to support and direct enterprises. In addition, tax audits must be more transparent, contributing to preventing negative acts and corruption.

The local governments should direct relevant departments and units to ensure each cadre and civil servant comprehends the administrative reforms as well as fighting against bureaucracy, corruption and harassment in order to well serve and support enterprises; publicise the process and staff who are responsible for handling the records; intensify the inspection of public duties and resolutely handle violated officers and employees.

The Government is closely directing ministries, branches and localities to actively implement the inspection in order to reduce troubles in all fields related to the enterprises’ business activities. In addition, it is essential to enhance practical and creative activities to effectively serve and bring about practical rights and benefits to enterprises as well as strictly punish and eliminate cadres who harass enterprises and people from administrative agencies, contributing to creating a driving force for the development of enterprises.

All small and medium-sized enterprise seek ways to develop, expand their markets and promote their brands, aiming to continuously increase their income and benefits and better serve the community. However, many enterprises are afraid of being ‘developed’ due to the harassment and profiteering of several administrative officials and cadres.

Therefore, it is highly necessary to encourage the spirit of ‘daring to think, daring to do’ of enterprises as well as reduce bureaucracy, imperatives and barriers in State management.