31 March 2015
Vietnam

Resolution 19/2015 to improve business environment and national competitiveness

NEW RESOLUTION ON IMPROVING BUSINESS ENVIRONMENT AND NATIONAL COMPETITIVENESS IN 2015 AND 2016

On 12 March 2015, the Government issued Resolution 19/NQ-CP/2015 on key duties and solutions to continue improving business environment and national competitiveness in 2015 and 2016 (“Resolution 19”). We are pleased to share with you the key objectives and facilitate how they translate into specific targets for individual area.

MAIN OBJECTIVES AND TARGETS FOR VIETNAM IN 2015 AND 2016
According to Resolution 19, Vietnam targets to achieve and exceed the average business environment index of ASEAN-6 in 2015, and will make effort to reach the average business environment index of ASEAN-4 on the basis of the international standards in 2006. The main specific targets are as follows:

 

Particulars Targeted Indices
2015 2016
Tax Payment 121.5 hours/year 168 hours/year (for both)
Social Insurance Payment 49.5 hours/year
Online Tax Declaration 95%
Online Tax Payment 90%
Tax Refunds 90%
  1. Examination for tax refund;
  2. Risk management in tax inspection and examination; and
  3. Controlling time and results of handling tax complaints
ASEAN-4 Level
Export Procedures 13 days 10 days
Import Procedures 14 days 12 days
Business Establishment 6 days Top 60 Country Level
Bankruptcy Procedures 60 mths → 30 mths
Resolution of Commercial Disputes 400 days (within 60 mths) → 200 days (within 24 mths)
Investor Protection Top 50 Country Level
Construction Permit Issuance 77 days
Real Property Ownership Registration 57 days → 14 days
Credit Access 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. These agencies shall conduct the following main tasks and solutions:

  1. continuing improvement of the legal framework and synchronously implementing solutions to develop and streamline effective operation of the markets, especially markets on merchandises, labour, finance, real estate and technology. At this point, the regulations on secured transactions, registration of secured transactions and bankruptcy to be improved;
  2. focusing on developing services with advantages in terms of knowledge, technologies and added value such as finance, banking, insurance, information communication, business support services, logistics, petroleum, production and processing, seaports, ship building, repairing and operation;
  3. implementing the plan to simplify administrative procedures (e.g. publishing the revised list of conditional sectors on the National Portal of Business Registration before 1 July 2015 and the standard administrative procedures on the Internet and at the head offices of the agencies in charge); and
  4. synchronously and effectively implementing the single-window mechanism and interconnected single-window mechanism as well as applying ISO quality management system TCVN ISO 9001 in the operations of state agencies and organizations.

Please contact Lien Nguyen and Long Bui for all enquiries regarding this legal update.