Unofficial costs may kill businesses, PM says
09:46 | 10/01/2019

VGP – PM Nguyen Xuan Phuc warned that unofficial costs may kill businesses while he was speaking at the conference held by the Ministry of Finance on Wednesday.

PM Nguyen Xuan Phu (3rd from right) talsk with Minister of Finance Dinh Tien Dung (4rd from right) on the sidelines of the Ministry of Finance's conference to review performance in 2019 and deploy tasks for 2019, Ha Noi, January 9, 2019. Photo: VGP 

If a business has to pay VND 1 million (around US$43) in unofficial costs for each container, the total unofficial costs could be trillions of Vietnamese dong per year, said Phuc.

Unofficial costs are among the reasons why businesses can not grow, the Government chief emphasized.

According to a survey carried out by the Viet Nam Chamber of Commerce and Industry (VCCI), unofficial expenses for complying with customs procedures fell down to 53% in 2017 from 56.4% in 2016.

He also urged the Ministry to frankly look into other shortcomings, including tax policies in order to ease burdens on businesses and people.

The Ministry needs to devise a simple financial and accounting policy to support the development of small and medium sized enterprises right in 2019, Phuc said.

He also tasked the ministry to take measures to address bottlenecks related to administrative procedures to contribute to the Government’s ongoing efforts in improving business environment and sharpening the national competitiveness.

Last year, total budget revenues rose by 7.8% to VND 1.42 quintillion, higher than preset goal set by the National Assembly.

Budget overspending was estimated at around 3.67% GDP while foreign exchange reserves increased to over US$60 billion.

Under the 2018 report on Administrative Procedure Cost Index (APCI), the tax sector ranked first with the lowest compliance costs and time required for processing tax procedures was just 2.9 working hours./.

By Huong Giang

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