The EIU report noted that during the 2003-2023 period, Vietnam has implemented many reforms and market opening policies, from signing free trade agreements to increasing investment in infrastructure and human resources, thereby significantly improving the quality of the business environment. Specifically, Vietnam has increased significantly in the business environment rankings during this period, reaching an increase of 1.7 points (on a scale of 10), the highest among 82 countries monitored by the EIU. This proves that Vietnam's reform efforts have brought about clear results, turning Vietnam into a bright spot in the Southeast Asian region. The EIU's assessment as well as many recent reports on the business environment in Vietnam have changed significantly. In fact, many procedures related to the operations of enterprises and business households have completely changed compared to many years ago, becoming more convenient and faster. For example, last August, Ms. Tran Lam Thu (District 7, Ho Chi Minh City) prepared to open a facial care and skin care store with only 2 people. She went to the National Public Service Portal website to register according to the form. After completing the online application, she received a notification that the application was complete and after 5 working days, she went to the People's Committee of District 7 to receive the Business Registration Certificate. Then, she went to the tax office to declare taxes (business households will pay lump-sum taxes). "Business registration seems complicated but unexpectedly it is quite simple, it does not cost a penny. Currently, because it is new, taxes are exempted for the first 3 months. After that, it will depend on the business situation, but for a small store, the first year's revenue probably will not exceed 100 million VND/year to be subject to tax," Ms. Tran Lam Thu shared.
Many foreign organizations assess that Vietnam's business environment has improved a lot.
PHOTO: Nhat Thinh
Manufacturing economic activities are growing.
Similarly, Ms. Nguyen Thi Thanh, chief accountant of a trading enterprise in Phu Nhuan District (HCMC), compared that if in the past, the enterprise had to have 2 tax accountants, now there is only 1 person. Because just for submitting quarterly tax documents, in the past, the tax accountant had to go to the tax office to get a number and wait for their turn, then submit the declaration and wait for confirmation, and bring it back for storage. This usually took 1 session. Now everything is done online, so the enterprise will save time, personnel as well as reduce the storage of a mountain of documents and paper records. Or the application of electronic invoices has also become simpler for both enterprises and tax authorities, reducing the number of incorrect or missing invoices... As for the system of importing goods and declaring customs procedures, in the past, a business had to spend at least 3 days to complete the steps of buying a paper declaration form from the customs agency, bringing it back to fill out, the enterprise signing and stamping it, and bringing it up to submit. If there are any errors, they have to buy a new declaration form and carry out the steps from the beginning. But since 2016, when the VNACCS electronic customs system officially operated and transmitted declarations through the system, customs clearance of goods is no longer a burden for businesses. The system also automatically sorts goods, helping businesses receive goods within about 2 days instead of 5-6 days as before if the goods are classified as green... Dr. Nguyen Quoc Viet, Deputy Director of the Institute for Economic and Policy Research (VEPR), University of Economics (Vietnam National University, Hanoi ), said that not only EIU, the 2024 Economic Freedom Index announced by the Heritage Foundation (USA) with Vietnam's score reaching 62.8, up 1 point compared to the previous year, higher than the world and regional average. Vietnam is ranked 11th out of 39 countries in the Asia- Pacific region. Second, the "Annual Report 2024: Economic Freedom" published by the Fraser Institute (Canada) on October 16, this is the third consecutive year that Vietnam has improved its score and ranking in the report. Accordingly, from ranking 123/165 countries in 2019, by the end of 2022, Vietnam is ranked 99/165 countries.
According to a survey by the Central Institute for Economic Management (CIEM) in 2023, business conditions are regulated in a more favorable and easier-to-follow direction because they are consolidated in documents and decrees. Compared to the period before 2018, businesses have more advantages in complying with business conditions and compliance costs have also been reduced. However, reviewing conditional business lines in 15 state management fields in the list attached to the Investment Law, CIEM said that many problems still exist. That is, many industries have cut procedures by... combining names, or using industry names with a wide scope of regulation to shorten. Therefore, in terms of form, the number of industries under state management has increased, and the compliance costs of enterprises are still very high in reality. Dr. Nguyen Minh Thao, Head of the Department of Business Environment and Competitiveness Research (under CIEM), frankly said: The pace of business environment reform in reality has slowed down somewhat in the past 5 years. The initial cause was the fear of making mistakes and being affected by job positions from grassroots levels to ministries and branches. Next was the impact of the pandemic and post-Covid-19. "Some business conditions have shown signs of increasing, creating many barriers, increasing unreasonable and unnecessary costs, causing consequences for state management, hindering production and business activities of enterprises. Notably, this situation also increases costs and risks, reduces investor confidence, affects the attractiveness of the business environment and creates more room for corruption. All of the above factors pose risks to enterprises and directly impact the growth and development of the economy," Dr. Nguyen Minh Thao commented, emphasizing the need for more reform efforts. In particular, the important thing is whether the leader's determination follows a truly reformist mindset or not; whether the facilitation for businesses is thoroughly followed or not... That is also an issue that needs to be carefully considered.
Many tax procedures are more convenient and faster.
PHOTO: Ngoc Duong
In addition, Dr. Nguyen Minh Thao pointed out that business conditions or additional regulations in the management process of some industries need to have reports evaluating their effectiveness after a period of application. If they are found to be ineffective, or even cause a setback in the industry's administrative reform efforts, they should be eliminated. For example, for the customs industry, there is a system for managing the classification of goods into green, yellow, and red. Every year, the customs industry always reports that the rate of goods classified in red has decreased and maintained at the lowest possible level according to reform efforts. However, through research, many businesses said that goods being "broken" during actual inspection still happen frequently. Each shipment being "broken" even though there is no violation, "is already swollen". Businesses have had their goods cleared slowly, incurring many additional actual and unrealistic costs right at the port. These "trivial" factors have existed from day to day, and at times have increased even more. Or, for example, the tax sector has a policy of increasing the issuance of temporary exit suspension notices for legal representatives of enterprises with overdue tax debts. Many places issue widespread notices, greatly affecting businessmen, even though enterprises have explanatory reports and commitments... These factors all affect the overall reform progress of Vietnam.
Customs procedures are more convenient than before.
PHOTO: Ng.Nga
According to Associate Professor Dr. Nguyen Manh Quan, Director of the Vietnam Enterprise Research Institute, the quality of reform depends largely on the leader. The important thing is whether the leader dares to be decisive, truly reform or is afraid of responsibility. There is a rather contradictory reality that many localities want to improve their competitiveness index, but investors' projects are "soaked" from year to month, and they are not resolutely resolved. The contradictory regulations in the law, the overlap between policies and mechanisms need a decisive leader to come up with solutions so that businesses can implement and people can have good jobs . But the leaders of many localities themselves send back and forth official dispatches asking the ministries. "Last year, a minister commented at the National Assembly session that there was a state of avoidance in handling the issue. It stemmed from the fact that localities "accused" of sending hundreds of documents to the Central Government to ask for opinions, but the content of the responses was unclear, leading nowhere to have a basis for resolution. But in reality, according to the Minister, it is the localities that are avoiding, pushing, and refusing to resolve the issue for enterprises. Thus, the most disadvantaged and miserable subjects are still enterprises. Therefore, the determination and daring to change of the leader is very important. Our regulations are not lacking, only the responsibility of the executors is lacking", Associate Professor, Dr. Nguyen Manh Quan shared.
Vietnam has been leading in improving the business environment in recent times.
PHOTO: Ngoc Thang
Dr. Nguyen Quoc Viet also agrees that organizations have highly appreciated the improvement of Vietnam's business environment in recent years, but there are still some problems. For example, the transparency of policies; the handling of disputes on contracts, trade, etc. in many cases is not good; or there are still incentives for state-owned enterprises in some cases, creating inequality in the business environment. Therefore, we must continue to further improve the business environment to create confidence for all investors. Because reducing legal compliance costs and unofficial costs will increase business profits. In particular, an improved business environment will contribute significantly to Vietnam's desire to attract high-quality foreign direct investment (FDI) in technology fields.
The EIU report noted that during the 2003-2023 period, Vietnam has implemented many reforms and market opening policies, from signing free trade agreements to increasing investment in infrastructure and human resources, thereby significantly improving the quality of the business environment. Specifically, Vietnam has increased significantly in the business environment rankings during this period, reaching an increase of 1.7 points (on a scale of 10), the highest among 82 countries monitored by the EIU. This proves that Vietnam's reform efforts have brought about clear results, turning Vietnam into a bright spot in the Southeast Asian region. The EIU's assessment as well as many recent reports on the business environment in Vietnam have changed significantly. In fact, many procedures related to the operations of enterprises and business households have completely changed compared to many years ago, becoming more convenient and faster. For example, last August, Ms. Tran Lam Thu (District 7, Ho Chi Minh City) prepared to open a facial care and skin care store with only 2 people. She went to the National Public Service Portal website to register according to the form. After completing the online application, she received a notification that the application was complete and after 5 working days, she went to the People's Committee of District 7 to receive the Business Registration Certificate. Then, she went to the tax office to declare taxes (business households will pay lump-sum taxes). "Business registration seems complicated but unexpectedly it is quite simple, it does not cost a penny. Currently, because it is new, taxes are exempted for the first 3 months. After that, it will depend on the business situation, but for a small store, the first year's revenue probably will not exceed 100 million VND/year to be subject to tax," Ms. Tran Lam Thu shared. 
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