30% reduction in costs and processing time: Two things businesses need most

30% reduction in costs and processing time: Two things businesses need most - Illustration photo

Launch pad for Vietnam 's economy to take off

In fact, the problem of improving the friendliness and efficiency of the investment and business environment in Vietnam has been raised for many years. However, at this time, the expectation of finding a satisfactory solution is really strong because this issue is receiving strong and close direction from the highest levels of leadership.

On February 24, 2025, chairing a working session with the Central Policy and Strategy Committee on the growth target set for 2025, General Secretary To Lam requested to reduce at least 30% of administrative procedure processing time; at least 30% of business costs, especially customs, regulatory compliance costs, informal costs, abolish at least 30% of unnecessary business conditions; strive for Vietnam's investment environment to be in the top 3 of ASEAN within 2-3 years.

On March 5, 2025, the Government Office issued Official Dispatch 1767/VPCP-TKBT implementing the conclusion of General Secretary To Lam at the working session with the Central Policy and Strategy Committee on February 24, 2025. Official Dispatch 22/CD-TTg dated March 9, 2025 of Prime Minister Pham Minh Chinh on a number of key tasks and solutions to reduce administrative procedures, improve the business environment, and promote socio-economic development once again reiterated the very specific goals mentioned above.

In a new article that is very important to the strategic vision of the private economy, General Secretary To Lam also emphasized: A prosperous economy cannot rely solely on the state sector or foreign investment, but must rely on internal strength, which is a strong private sector, playing a pioneering role in innovation and national development.

Sharing with the Government Electronic Newspaper, Lawyer Pham Ngoc Hung, former Permanent Vice President of the Ho Chi Minh City Business Association, said that leaders at all levels have raised two major issues that businesses need the most. One is to reduce costs for business and investment procedures. Businesses are burdened with costs, both official and unofficial, which are costly for them. The second is time costs, helping businesses limit the risk of being fined for orders and missing out on investment opportunities.

Lawyer Pham Ngoc Hung, former Permanent Vice President of Ho Chi Minh City Business Association - Photo: VGP/Hoang Hanh

From another perspective, Dr. Huynh Thanh Dien, Nguyen Tat Thanh University, said that Vietnam is entering an era of national development. In the economic field, we set a target of high, sustainable, continuous growth over the next two decades, to reach the upper middle income threshold by 2035 and high income by 2045.

However, this goal was set when Vietnam's economic growth model is still mainly in breadth, based on capital and investment with the contribution of this factor to GDP in the past 10 years always at 33-34%; the quality of human resources still has limitations; there is no connection, harmonious resonance, and mutual growth between the state-owned enterprise sector, the domestic private sector and the FDI sector.

"The growth model based on breadth must be transformed into depth, with higher business and investment efficiency. To do this, the business and investment environment must be improved. This is the launching pad for the Vietnamese economy to take off," emphasized Dr. Huynh Thanh Dien.

From determination to action

Of course, it will take a long time to realize the direction from leaders at all levels through appropriate policy actions. The Resolution of the regular Government meeting in February 2025 sets out the key tasks of promoting the improvement of institutions and law enforcement; cutting and simplifying administrative procedures, creating a favorable, transparent and healthy investment and business environment to support businesses. Notably, the Government Office is assigned to preside over and coordinate with agencies and localities to develop and submit to the Government for promulgation a Resolution approving the Program to cut and simplify administrative procedures related to production and business activities in the period of 2025 - 2030; to be completed before March 31, 2025.

Lawyer Pham Ngoc Hung assessed that the goal of reducing at least 30% of administrative procedure processing time; at least 30% of business costs, especially customs, regulatory compliance costs, informal costs, and abolishing at least 30% of unnecessary business conditions... can be completed in 2025.

Firstly, we have applied information technology in resolving and processing administrative procedures related to production and business activities and in the coming time, we need to promote this and implement it thoroughly and uniformly, eliminating the situation of "one door but many stamps", enterprises submit paper documents and receive results on the system, there is a method for enterprises to proactively view the progress of document processing to supplement and complete if necessary, also online...

In addition, it is possible to consider applying new technologies such as big data, artificial intelligence (AI) in management, record storage, and handling of requests or problems of enterprises to speed up the time to resolve procedures related to business and investment. The application of technology also reduces contact between people and procedure processing points, minimizing the risk of informal costs.

Second, streamlining the apparatus will simultaneously reduce the number of intermediate levels in handling administrative procedures. However, to ensure smooth and efficient work, restructuring the apparatus needs to go hand in hand with job placement, promoting the application of technology, and reducing unnecessary procedures.

Dr. Huynh Thanh Dien - Photo: VGP/Hoang Hanh

Agreeing with the above opinion, Dr. Huynh Thanh Dien said that through recent contacts with businesses, some businesses shared that they encountered difficulties with legal procedures, for example, the licensing regulations are common but in different provinces, the licensing approval procedures are different. They hope that the implementation of the policy of rearranging administrative units at the provincial, district, and commune levels will not create interruptions or delays in the review of documents.

However, looking at the overall picture, the expert is still optimistic that if we are determined, have the right approach and reasonable implementation plans, we can cut more than 30% of costs and time for administrative procedures related to production and business activities.

First, businesses must be allowed to do what is not prohibited by law, as directed by the highest levels of leadership. To do so, review and reduce business conditions and sub-licenses, only apply licenses and conditions that are truly necessary, according to international practices for specific sectors such as finance, education, healthcare, food, etc.

The view of minimizing barriers for businesses wanting to enter the industry needs to be reflected in the relaxation of regulations on legal capital, especially for new industries and fields based on science, technology, and innovation. It is necessary to make it possible for individuals with good ideas to bring their projects to convince investors, contribute capital to establish a business, and register a business without having to have capital in advance to open a business and then call for more investment, hindering people with breakthrough thoughts and ideas.

Another issue is the need to loosen the requirements for professional certificates, only regulating them for specific professions. For professional certificates, skills or safety certificates, it is necessary to create conditions for businesses to coordinate training and certification, ensuring output quality meets the requirements of each business, each industry and each field.

Second, during the implementation process, it is necessary to determine the consistent principle of switching from pre-inspection to post-inspection. The management side will announce standards for enterprises depending on their size, industry, and field. In addition to industries with strict requirements, anyone who is qualified can participate. The management agency will conduct post-inspection and handle violations (if any).

In areas where businesses cannot do it themselves, such as ensuring construction standards, fire prevention and fighting standards, etc., create conditions for the formation of consulting units, support businesses and take responsibility for ensuring their compliance in these areas. Only then, after the administrative apparatus is streamlined, administrative procedures, production and business conditions will still be fully and quickly implemented, providing the best support for businesses.

Finally, according to the expert, tax should be considered a regulatory tool to encourage or restrict businesses from participating in each industry and field, in accordance with the overall strategy of the entire economy. For example, for speculative industries and fields, high tax rates should be applied, directing cash flow to the production, business and innovation sectors.

To create a business and investment environment that promotes innovation

Regarding the goal of growth based on science, technology and innovation, Dr. Huynh Thanh Dien said that, in addition to improving administrative procedures, reducing business conditions, using effective tax tools... as mentioned, perfecting the legal framework, perfecting the market, and building support policies also contribute to creating an attractive environment to promote innovation.

The expert suggested that Vietnam should refer to and learn from China's experience. During the technology learning period, which lasted until 2001, China implemented a series of mid- and long-term national R&D programs, in parallel with commercialization projects to apply science and technology to industrial development.

China then launched the Development Strategy through Science and Education, enhancing China's scientific and technological innovation capacity and developing world-class universities to provide high-quality human resources for the industrialization process.

In the stage of technology localization, China has a policy to promote high-tech and innovation industries, identifying strategic emerging technology industries to pursue such as electric vehicles, space and satellites, supercomputers, semiconductors, quantum computing and communications, AI, 5G, and biotechnology.

China's policies are designed to link "enterprises - universities - research institutes" in innovation, with the government supporting, providing R&D funding and pilot projects for new technologies.

"Thus, Vietnam needs to build a technology infrastructure for data, AI, hard IT infrastructure... suitable for innovation, build centers to mobilize businesses operating in this field from within and outside the country, similar to China's Shenzhen Technology Center, develop frameworks and markets to serve technology research and innovation activities such as science and technology markets, regulations to protect intellectual property rights, encourage individuals and organizations to register patents, startup ecosystems... Developing a capital market for scientific research and innovation, encouraging private resources to participate in this activity is also an issue that needs to be studied and come up with a plan suitable to Vietnam's conditions", Dr. Huynh Thanh Dien recommended.

Hoang Hanh

Source: https://baochinhphu.vn/giam-30-chi-phi-thoi-gian-lam-thu-tuc-hai-dieu-doanh-nghiep-can-nhat-102250318110627569.htm