New Resolution on Improving Business Environment and National Competitiveness in 2016-2017
On 30 March 2015, an update was issued on the key duties and solutions for improving business environment and national competitiveness in 2015 and 2016 specified in Resolution 19/NQ-CP/2015 (“Resolution 19/2015”). On 28 April 2016, the Government issued a new resolution No. 19-2016/NQ-CP (“Resolution 19/2016”) to review the achievements of Resolution 19/2015 and set out new targets for the two years 2016-2017 with orientation to year 2020. We set out below the main highlights.
MAIN OBJECTIVES AND TARGETS FOR VIETNAM IN 2017-2020
According to Resolution 19/2016, although Vietnam’s business investment environment and competitive capability has improved, some items have not achieved the criteria required under Resolution 19/2015 such as construction permit issuance, real property ownership registration, export and import procedures, and bankruptcy procedure. Consequently, the purpose of the Resolution 19/2016 is to target for Vietnam to achieve (i) the average of the ASEAN-4 countries on a number of the competiveness indicators under the effective improvement index by the end of 2017, and (ii) the average of ASEAN-3 countries on a number of indicators of international practice by 2020. We set out below the indices in comparison with those as specified in Resolution 19/2015:
New Targets for 2017
| Particulars | 2017 Targets |
| Effectiveness of Competition Policy | Top 50 Country Level |
| Limiting Non-Tariff Barriers | Top 40 Country Level |
| Guaranteed Flexible Wage Index | Top 60 Country Level |
| Ability to Retain and Attract Talent | Top 40 Country Level |
New Targets for 2020
| Particulars | 2020 Targets |
| Custom Clearance for cross-border Goods for Import | Less than 41 hrs |
| Custom Clearance for cross-border Goods for Export | Less than 36 hrs |
| Access to Medium Voltage Electricity Mains | Less than 33 days |
| Particulars | Targets | |
| 2016 | 2020 | |
| Tax Payment | 168 hrs/year | 110 hrs/year |
| Social Insurance Payment | 168 hrs/year | 45 hrs/year |
| Business Establishment | Top 60 Country Level | Top 40 Country Level |
| Bankruptcy Procedures | 60 mths → 30 mths | Max. 20 mths |
| Resolution of Commercial/Contract Disputes | 400 days (within 60 mths) → 200 days (within 24 mths) | Less than 200 days |
| Investor Protection | Top 50 Country Level | Top 30 Country Level |
| Construction Permit Issuance | 77 days | Less than 70 days |
| Real Property Ownership Registration | 57 days → 14 days | Less than 10 days |
| Credit Access | Top 30 Country Level | Top 30 Country Level |
AGENCIES IN CHARGE AND THEIR MAIN TASKS AND SOLUTIONS
In order to achieve the above targets, the Government requires the involvement of most of the ministries, Vietnam Social Insurance, the People’s Committees of provinces and cities, and the different Business and Professional Associations. The highlighted tasks and solutions for the time from 2017 to 2020 are changed as follows:
- co-ordinating regime on resolving procedures for registration of investment and business; especially to formulate Decrees on business conditions in accordance with the 2014 Law on Investment and to create consistency and uniformity of all procedures relating to investment, enterprise, land, construction, tendering and environment;
- simplifying the procedures for declaration of social insurance and medical health insurance revenue and expenses, inspection of the food safety and on quarantine of imports, and issuance of construction permits;
- making a submission to the National Assembly on a draft Law to amend the Law on Competition before December 2017; and
- publicizing the database on tax refunds and completing the two systems being Vietnam Automated Cargo and Port Consolidated System and Vietnam Customs Intelligence Information System for the customs procedures.
Please contact Lien Nguyen, Duong Nguyen or Jamie Loo for more information on this update.