Business environment improvement: Changed approach, ministers empowered
14:50 | 04/01/2019
VGP – Cabinet ministers are now empowered to lead their ministries’ efforts in improving business environment and national competitiveness, according to head of central think-tank.

Getting electricity moves up 69 places while global innovation index climbs up 14 places in 2018 on global scale.

    >>> Infographics: Figures show how VN has improved

    >>> Viet Nam's economic growth since 1994 

It is time for each of the ministers to promote activeness and creativity and their efforts will be scrutinized and evaluated, Nguyen Dinh Cung, Director of the Central Institute for Economic Management said in a recent interview following the Government’s introduction of Resolution No. 02 affirming its efforts to continue improving the country’s business environment and competitiveness.

The Resolution No. 02, previously known as Resolution No. 19 shows a new approach and was designed on the basis of achievements gained during the past years as well as the latest rankings of the country released in the international organizations’ reports.

Under the new resolution, the Government sets a goal to turn Viet Nam’s into the top 4 ASEAN countries on various indexes including business environment, national competitiveness, innovation, e-Government and another fresh index published by the World Economic Forum - readiness for the future of production.

Cung said the resolution takes into account all the indexes released by international organizations.

Nguyen Dinh Cung-Director of Central Institute for Economic Management. Photo: VGP

Changed approach

The resolution shows the Government has changed its approach to improve business environment and competitiveness.

First of all, the Government delegate goals to each ministry/agency in stead of solutions and specific tasks in order to promote the activeness and creativity of minister who has the power to decide himself the necessary solutions on how to realize assigned goals.

This approach puts more pressure on Cabinet members as they must be able control workflows and see whether their inferior levels do the right things, said the central think-tank director.

If the workflows are well controlled, provincial leaders will know whether their staffs commit illegal acts, including petty corruption, he added.

The resolution requires ministries and agencies to continue abolishing or streamlining business conditions in a substantial manner to bring about practical benefits to businesses and citizens.

Second, the Government will also continue comprehensive reform of specialized inspection in a bid to support businesses engaging in im-export activities.

Third, the Government will strengthen non-cash payment and accelerate provision of level-4 administrative services to 30% in order to increase transparency and reduce room for petty corruption, contributing to innovation of state governance.

Fourth, the Government will develop an ecosystem for startups and innovations without taking administrative measures to interfere innovation efforts of businesses, think-tanks and universities while adjusting tax policies to create impetus for businesses to innovate.

Key indexes have improved

According to international organizations, Viet Nam has improved 13 ranks in terms of business environment in 2018 compared to 2016 (in which, Getting Electricity jumps 69 places, Paying Taxes and Social Insurance climbs 36 places, Starting a Business jumps 17 places). Logistics Performance Index climbs 25 places, and Global Innovation Index jumps 14 places...

The rapid and clear improvements of the business environment and the national competitiveness are highly appreciated by international organizations and well-recognized by enterprises and citizens.

However, Viet Nam’s business environment and national competitiveness rankings remain at average level on global scale (ranking  69th out of 190 economies in terms of business environment, 77th out of 140 in terms of competitiveness).

In the ASEAN region, Viet Nam is still not in the top 4 countries (ranking 5th in terms of business environment, 7th in terms of competitiveness). Besides some indexes that have improved quickly, many indexes still observe slow improvements.

Particularly, some indexes have dropped sharply compared to the region and the world such as: Resolving Insolvency in 2018 down 8 ranks compared to 2016, at the bottom of the rankings; and Trading across Borders down 7 places.

Indexes related to technology and innovation to adapt to new generation of manufacturing in the 4thindustrial revolution are slowly updated, monitored and improved, business environment ranking fell by one place according to the World Bank, and Global Competitiveness dipped by 03 ranks as the World Economic Forum (WEF) reported.

By Quang Minh

  Reader opinion
Turn off Vietnamese typing Automatic typing Telex VNI VIQR  
Fullname Email address