Resolution No. 02/NQ-CP 2020 further performance of implementation of solutions to improve the business environment

RESOLUTION

On further performance of tasks and implementation of major solutions to improve the business environment and national competitiveness in 2020

THE GOVERNMENT

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the National Assembly’s Resolution No. 142/2016/QH13 of April 12, 2016, on the 2016-2020 socio-economic development plan; and Resolution No. 85/2019/QH14 of November 11, 2019, on the 2020 socio-economic development plan;

At the proposal of the Minister of Planning and Investment,

RESOLVES:

I. EVALUATION OF REALITIES

Improving the business environment and national competitiveness is a top priority in the Government’s policies over the recent years. Annually, the Government adopts and resolutely implements a specialized resolution on such issue. Ministries, sectors and localities have also improved their awareness about administrative reforms and improvement of the business environment, and more and more actively performed their tasks and implemented solutions within the ambit of their management.

In 2019, almost all Vietnam’s rating indicators were improved. The national competitiveness gained 3.5 points and was up by 10 ranks^[1] with 8 out of 12 pillars gaining points and ranking much higher. The innovation indicator^[2] rose 3 ranks with 6 out of 7 pillar groups gaining points. The business environment was up by 1.2 points^[3]. The competitiveness of tourism sector was up by 4 ranks^[4].  

However, the quality of Vietnam’s business environment and competitiveness remained low, ranked fifth or sixth in ASEAN. This prompts us to continue with vigorous reforms in order to achieve the goal of becoming among 4 leading nations of ASEAN^[5].

In order to create a breakthrough in improving the business environment and national competitiveness and labor productivity, thus contributing to successfully achieving the objectives and fulfilling the tasks of the 2020 socio-economic development plan under the National Assembly’s resolution, the Government issues this Resolution in furtherance of Resolution 02 of 2019 and Resolutions 19 of the 2014-2018 period on improvement of the business environment and national competitiveness.

II. MAJOR OBJECTIVES AND TARGETS OF IMPROVING THE BUSINESS ENVIRONMENT AND NATIONAL COMPETITIVENESS IN 2020

1. Overall objectives

To continue striving for overall objectives and targets oriented toward 2021 under Resolution 02/NQ-CP dated January 1, 2019, on further performance of major tasks and implementation of major solutions to improve the business environment and national competitiveness in 2019, with orientations toward 2021. In 2020, it is a goal to improve national rankings as follows:

a/ Business environment as rated by EoDB (of WB)^[6]: Up by 10 ranks.

b/ Competitiveness as rated by GCI 4.0 (of WEF)^[7]: Up by 5 ranks.

c/ Innovation as rated by GII (of WIPO)^[8]: Up by 3-4 ranks.

d/ E-Government (by UN)^[9]: Up by 10-15 ranks.

2. Some targets

a/ Regarding improvement of the business environment as rated by EoDB in 2020:

- To raise business startup index (A1) by 10-15 ranks.

- To raise tax and social insurance premium payment index (A2) by 7-10 ranks.

- To increase score and maintain construction licensing index ranking (A3); to shorten the time of actual construction licensing to 120 days.

- To increase score and maintain credit access index ranking (A4).

- To raise investor protection index by 7-10 ranks.

- To increase score and maintain electric power access index ranking (A6).

- To raise cross-border trading index (A8) by 5-10 ranks.

- To raise contract dispute settlement index (A9) by 5-7 ranks.

- To raise business bankruptcy settlement index (A10) by 7-10 ranks.

b/ Regarding improvement of competitiveness as rated by GCI 4.0 in 2020:

- To increase score and maintain law compliance cost index ranking^[10] (referred to as B1 for short).

- To raise land administration quality index^[11] (B3) by 5-7 ranks.

- To raise group of information technology application indexes^[12] (B5) by 2-3 ranks. 

- To raise vocational training index^[13] (B6) by 5-10 ranks.

- To raise innovative enterprise growth index^[14] (B9) by 3-5 ranks.

- To raise companies with breakthrough innovative ideas index^[15] (B10) by 2-3 ranks.

III. MAJOR TASKS AND SOLUTIONS

1. Ministries, sectors and localities shall continue comprehensively, consistently and effectively performing the tasks and implementing the solutions based on the objectives and targets set forth in Resolution No. 02/NQ-CP of January 1, 2019.

2. Ministries assigned to act as focal points to monitor sets of indexes and ministries and agencies assigned to assume the prime responsibility for groups of indexes and component indexes shall:

a/ Revise and improve documents, organize training and provide guidance to ensure that ministries, agencies and localities have a correct, adequate and unified understanding about objectives, sets of indexes, groups of indexes, component indexes and reporting forms; issue guiding documents or supplementary action plans (when necessary) before February 15, 2020.

b/ Continue supporting, examining and evaluating the implementation and implementation results obtained by ministries, sectors and provincial-level People’s Committees; propose or report to the Government and Prime Minister on solutions to directing the settlement of problems beyond their competence.

c/ Take the initiative in coordinating with provincial-level People’s Committees in contacting related international organizations; provide and update sufficient necessary information to ensure objective and accurate evaluation and ranking; carry out external information work to introduce annual evaluation and ranking results.

d/ Before June 20 and December 20, 2020, sum up results of achievement of indexes as assigned in six months or the whole year, then report them to the Ministry of Planning and Investment (the Central Institute for Economic Management) and the Government Office for summing up and general reporting on implementation and implementation results of the Resolution. Reporting contents should closely follow requirements of the Resolution, specify realized initiatives, performed reforms and results, thereby evaluating effects of time shortening and cost cutting for enterprises and clearly stating difficulties and problems in the course of implementation and recommendations and proposals (if any).

3. Further improving scores and ranking of business environment indexes

a/ Regarding business startup:

- In the first quarter of 2020, the Ministry of Finance shall propose amending the Government’s Decree No. 139/2016/ND-CP of October 4, 2016, prescribing license fee, toward prolongation of time limit for declaring and paying license fee until January 30 of the subsequent year; supervise the implementation of provisions on procedures for ordering printing or self-printing of invoices and notification of invoice distribution within the prescribed time limit of 4 days (including 2 days for ordering printing or self-printing and 2 days for notification of distribution); or for purchase of invoices within a day; intensify the use of e-invoices under the Government’s Decree No. 119/2018/ND-CP of September 12, 2018, prescribing e-invoices for sale of goods or provision of services.

- The Ministry of Labor, Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in studying and developing an information system for online declaration of labor to be connected with the national information system on enterprise registration in the quarter IV of 2020.

- The Ministry of Planning and Investment shall continue finalizing the draft revised Enterprise Law toward annulling or simplifying unnecessary and impractical procedures in order to shorten market participation time and reduce market participation cost, and finalize and submit such draft to the National Assembly at its 5^th session in 2020.

b/ Regarding construction licensing:

- Ministries and provincial-level People’s Committees shall continue seriously implementing the Prime Minister’s Directive No. 08/CT-TTg of March 13, 2018, on enhancing the implementation of measures to shorten construction licensing time and related formalities; supervise and enhance order and principles in the performance of administrative procedures; and report before March 20, 2020, on implementation and implementation results to the Ministry of Construction and Ministry of Planning and Investment (the Central Institute for Economic Management) for summing up and reporting to the Prime Minister.

- In the third quarter of 2020, the Ministry of Construction shall revise the order and procedures for construction licensing in order to shorten construction licensing and inspection time to no more than 50 days; to study and propose the application of risk management methods in construction investment activities in order to reduce number of examination and approval times.

c/ Regarding credit access:

- The State Bank of Vietnam shall continue effectively implementing solutions to maintain credit information depth index; direct credit institutions to create favorable conditions for people and enterprises to access credit loans in a fair and transparent manner.

- The Ministry of Justice shall completely perform the following tasks in 2020:

+ Studying and proposing amendments and supplementations to the Decrees guiding the 2015 Civil Code’s provisions on security transactions, improving regulations on registration of security transactions, payment priority order, etc., toward simplifying provisions on dossiers and online registration, modification and deregistration of security measures.

+ Coordinating with the Ministry of Natural Resources and Environment and related ministries and sectors in improving legal grounds for land e-transactions, including registration of security measures with land use rights and land-attached property.

+ Coordinating with the Supreme People’s Court in studying, proposing or reporting to the Government and National Assembly on improvement of the bankruptcy law, specifying the period during which secured parties may request the realization of security property in case such property is unnecessary for the restructuring of bankrupt enterprises.

d/ Regarding property registration:

- The Ministry of Natural Resources and Environment shall:

+ Assume the prime responsibility for, and coordinate with the Ministry of Finance and related agencies in, requesting and guiding localities in implementing necessary measures to shorten time for completing procedures for granting land-attached property ownership certificates, transferring house ownership or registering land use rights in compliance with current regulations in the second quarter of 2020.

+ Coordinate with the Supreme People’s Court in studying and proposing specific solutions to publicizing data on settlement of land-related disputes and shortening time for settlement of land-related disputes in the second quarter of 2020.

- Chairpersons of provincial-level People’s Committees shall:

+ Direct and supervise the completion of administrative procedures in their localities, ensuring strict compliance with the law-prescribed order, procedures and time limit.

+ Prioritize allocation of budget funds for measurement and making of cadastral maps with coordinates under the National Assembly’s Resolution No. 39/2012/QH13; and report such to the Ministry of Natural Resources and Environment before March 20, 2020.

dd/ Regarding the settlement of contract disputes and business bankruptcy:

The Ministry of Justice shall guide the implementation of solutions to improve contract dispute settlement and business bankruptcy settlement indexes; propose amendments to the Law on Execution of Civil Judgments in order to simplify procedures and shorten time for, and reduce costs of, execution of civil judgments; and organize the collection of court fee by cashless modes.

e/ To assign the Ministry of Planning and Investment to assume the prime responsibility for, and coordinate with related ministries and sectors in, studying and proposing amendments to regulations on bidding for public investment projects in the fourth quarter of 2020.

4. Substantially improving regulations on business conditions

a/ Ministries and ministerial-level agencies shall:

- Update and publicly announce administrative procedures for grant of certificates of business eligibility which were simplified in 2018 and 2019; and publicize a table of comparison of business conditions before and after annulment or simplification of such procedures in January 2020. They shall seriously announce or publicize administrative procedures for grant of certificates of business eligibility simplified from 2020 on under regulations on control administrative procedures.

- Study and propose amendments to the relevant laws in order to annul or simplify business conditions prescribed in the specialized laws under approved plans.

b/ The Ministry of Justice shall improve quality of the appraisal and promulgation of business investment conditions in draft laws and decrees in compliance with the Law on Investment and Decrees on business investment conditions.

c/ Chairpersons of provincial-level People’s Committees shall direct proper and adequate implementation of regulations on business conditions which have been simplified; refrain from setting out more business conditions in any form; strictly handle officials and civil servants who fail to adequately and properly implement new regulations on business conditions.

d/ the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Government Office in, monitoring and evaluating the situation and results of the comprehensive improvement of regulations business conditions by ministries, sectors and localities, then reporting to the Prime Minister before December 20, 2020.

5. Further comprehensively reforming the specialized management and inspection and connection of the national single-window mechanism and ASEAN single-window mechanism

a/ Ministries and ministerial-level agencies shall:

- By the end of 2020, fully carry out reforms in specialized management and inspection, including (i) application of risk management based on evaluation and analysis of enterprises’ compliance level and level and scale of risks of goods; (ii) radical shift from inspection mainly at the stage of customs clearance for goods to supervision mainly on the domestic market; (iii) publicization of the list of goods items subject to specialized inspection with HS codes detailed to subheadings and relevant methods of specialized management of imports and exports and expenses payable by enterprises, in appropriate and easy-to-access forms; and (iv) provision of level-4 online public services.

- Complete the review and substantial reduction by half of goods items on the list of goods subject to specialized inspection^[16]. In the first quarter of 2020, publicize fully on their websites lists of goods with HS codes subject to specialized management and inspection with tables of comparison of procedures before and after simplification.

- Complete in the second quarter of 2020 the restructuring of organizational apparatus of related ministries in the direction that specialized inspection of each goods item will rest with only one ministry.

- Speed up the performance of their tasks assigned under the Prime Minister’s Decision No. 1254/QD-TTg of September 26, 2018, approving the plan of action to promote the national single-window mechanism and ASEAN single-window mechanism, reform of specialized inspection of imports and exports, and facilitation of trade in the 2018-2020 period.

- Fully discharge their assigned specialized inspection responsibility under the Government’s Decree No. 85/2019/ND-CP of November 14, 2019, prescribing the completion of administrative procedures under the national single-window mechanism or ASEAN single-window mechanism and specialized inspection of imports and exports.

b/ The Ministry of Finance shall:

- Formulate and submit to the Government for approval an overall scheme on building and development of an information technology system to serve the implementation of the national single-window mechanism and ASEAN single-window mechanism in the direction of centralized processing.

- Radically reform customs procedures toward electronization and e-customs clearance in conformity with international standards; assume the prime responsibility for formulating a scheme on reform of specialized inspection in the direction that customs offices act as focal points for specialized inspection of goods at border gates (except goods related to security, national defense, quarantine, etc.) and line ministries carry out post-customs inspection, then submit it to the Government in the first quarter of 2020.

- Study and propose solutions to promptly address prolonged problems in the taxation of materials and supplies redundant from the export production and processing.

- Assume the prime responsibility for monitoring the implementation and evaluating results of the reform of specialized management and inspection; evaluate changes in and effects of the reform on import and export enterprises, then report them to the Prime Minister before December 20, 2020.

c/ The Ministry of Agriculture and Rural Development shall:

- Apply the principles of risk management, priority channeling and mutual recognition in specialized management and inspection of aquatic product import and export; guide and distinguish quarantine from food safety inspection; provide specific and clear guidance on inspection methods (particularly sensual inspection), ensuring consistent implementation and avoiding new expenses to be borne by enterprises.

- Assume the prime responsibility for, and coordinate with the Ministry of Finance in, revising Circular No. 285/2016/TT-BTC on methods of calculating animal health charges and fees, in order to reduce unreasonable expenses to be borne by enterprises.

d/ The Ministry of Transport shall study, propose and implement solutions to limit the imposition and increase of charges by shipping companies and wharfage surcharge.

6. Intensifying cashless payment and provision of level-4 online public services

a/ Ministers and heads of ministerial-level agencies shall direct the provision of at least 30% of level-4 online public services under their competence; permit people and enterprises to make cashless payments by various means, including an app tool on the national public service portal, as scheduled; intensify the receipt of dossiers and notification of results of completion of administrative procedures via public postal services.

b/ The Ministry of Information and Communications shall speed up the grant of permits for operation of 2.6 GHz frequency band for 4G network to telecommunications enterprises in accordance with law; sum up and report implementation results in 6 months and the whole year to the Ministry of Planning and Investment (the Central Institute for Economic Management) and Government Office before June 20 and December 20, 2020, for incorporation in a general report on implementation of the Resolution.

c/ The State Bank of Vietnam shall:

- Assume the prime responsibility for, and coordinate with the Ministry of Justice and related agencies in, proposing the Prime Minister to issue in the fourth quarter of 2020 a decision on pilot use of telecommunications accounts for payment for small-value services (Mobile-Money) and pilot application of new payment service models pending issuance of regulations in order to ensure the management thereof, particularly for cross-border payment activities.

- Sum up and evaluate results of the implementation of the scheme on development of cashless payment in Vietnam during 2016-2020 promulgated together with the Prime Minister’s Decision No. 2545/QD-TTg of December 30, 2016; and propose solutions to step up cashless payment in the coming period, in the fourth quarter of 2020.

d/ The Ministry of Finance shall provide in the fourth quarter of 2020 specific guidance on financial mechanism to be applied by administrative institutions and non-business units in paying charges for cashless payment services in a unified manner.

dd/ The Ministry of Education and Training shall direct all schools, colleges and universities to coordinate with credit institutions and payment intermediary institutions in paying and collecting tuitions by cashless payment methods; until the end of 2020, all schools, colleges and universities in urban areas may accept tuition payment via banks; encourage schools, colleges and universities to build and standardize their databases and upgrade technical infrastructure facilities to connect and share information with banks and collect tuitions by electronic methods.

e/ The Ministry of Labor, Invalids and Social Affairs and Vietnam Social Security shall elaborate and promulgate according to their competence guidance, standards and schedules of standardization of information and data on pensioners, social insurance allowance beneficiaries and social security regimes for connection and sharing of information with credit institutions and payment intermediary institutions to serve the payment of social security benefits, pensions and social insurance allowances via banks.

The Vietnam Social Security shall direct provincial-level Social Security offices in mobilizing and encouraging pensioners and social insurance allowance beneficiaries to receive their pensions and benefits via cashless payment means, with a view to attaining 50% of people entitled to pensions, social insurance allowances, burial allowance, survivorship allowance, etc., using cashless payment means in urban areas.

The Ministry of Labor, Invalids and Social Affairs shall direct public communication among and provide guidance and support to beneficiaries in receiving allowances via cashless payment means, ensuring 30% of these people will use cashless payment means by the end of 2020.

g/ The Ministry of Public Security shall assume the prime responsibility for building a database on handling of administrative violations in traffic safety; uniformly apply the system of titling fines for administrative violations (with ID codes); connect and share information on fine collection with the State Treasury, commercial banks and enterprises assigned to manage the public postal network and provide public-utility postal services, and related units; apply cashless payment modes in collecting fines for administrative violations.

h/ The Ministry of Health shall direct hospitals to coordinate with credit institutions and payment intermediary institutions in collecting hospital fees by cashless methods; strive for the objective set forth in the Prime Minister’s Decision No. 241/QD-TTg of February 23, 2018, that 505 of hospitals in major cities will accept via-bank hospital fee payments.

i/ The Government Office shall assume the prime responsibility for, and coordinate with ministries, sectors and localities in:

- Organizing and inspecting the implementation of administrative procedure reform and single-window and inter-agency single-window mechanisms in the completion of administrative procedures; monitoring and urging the provision of online public services at level 3 and level 4 by ministries, sectors and localities under the Prime Minister’s Decision No. 846/QD-TTg of June 9, 2017, and Decision No. 877/QD-TTg of July 18, 2018.

- Reviewing and proposing to the Prime Minister a decision to promulgate the list of public services to be provided via the national public service portal in 2020 and organizing the provision of such services.

k/ Chairpersons of provincial-level People’s Committees shall:

- Direct the intensified application of the method of receiving dossiers and notifying administrative procedure clearance results via public-utility postal services.

- Before February 20, 2020, report on results of achievement of the objective that all schools, hospitals, electricity retail companies, water supply and drainage companies, environmental sanitation companies, telecommunications and post companies in urban areas coordinate with banks and payment intermediary service providers in collecting tuitions, hospital fee, electricity charge, etc., by cashless payment modes, with priority given to payment solutions via mobile devices or card-accepting devices, to the Ministry of Planning and Investment (the Central Institute for Economic Management) for summing up and reporting to the Prime Minister.

7. Developing the innovation ecosystem, supporting and encouraging innovative startups

a/ The Ministry of Science and Technology shall assume the prime responsibility for:

- Improving the legal framework for comprehensively developing the national innovative startup ecosystem and connecting innovative networks at home and abroad;

- Implementing solutions to improve capacity of enterprises to absorb and master technologies and attract investment by enterprises in science, technology and innovation; bringing into full play the role of the national technological innovation fund and enterprises’ science and technology development funds in supporting technological innovation within enterprises.

b/ The Ministry of Education and Training shall assume the prime responsibility for studying and proposing solutions to develop innovative startup spaces in universities.

IV. ORGANIZATION OF IMPLEMENTATION

1. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall:

a/ Personally direct and take responsibility before the Government and Prime Minister for results of implementation of the Government’s resolutions on improvement of the business environment and national competitiveness.

b/ Regularly inspect and supervise the implementation and evaluate results of implementation of programs and plans on implementation of the resolutions on improvement of the business environment and national competitiveness by ministries, sectors and localities.

c/ Strictly observe the reporting regime; sum up and report before June 20 and December 20, 2020, on biannual and annual implementation results of the Resolution to the Ministry of Planning and Investment (the Central Institute for Economic Management) and Government Office for summing up and reporting to the Government and Prime Minister at the Government’s June and year-end regular meetings.

2. Every ministry, sector or locality shall carry out public communication about improvement of the business environment and national competitiveness under its responsibility. The Vietnam News Agency, Radio Voice of Vietnam, Vietnam Television Station and other press agencies shall take the initiative in assisting ministries, agencies and localities in organizing public communication; thoroughly grasp and disseminate the Resolution among sectors and administration levels; enhance the monitoring and supervision by communications and press agencies of the implementation and implementation results of the Resolution.

3. The Ministry of Home Affairs shall consider incorporating a number of criteria for evaluating and rating the implementation of the Resolution in annual survey contents of public administration reform index (PAR index) and satisfaction index of public administration services (SIPAS).

4. The working party of the Prime Minister shall enhance the inspection and supervision of performance of the tasks and implementation of the solutions set forth in the Government’s Resolutions 19 and 02 on improvement of the business environment and national competitiveness.

5. The National Council for Sustainable Development and Improvement of Competitiveness shall regularly monitor the implementation and evaluate results of implementation of the Resolution; and propose to the Prime Minister directing solutions.

6. The Vietnam Chamber of Commerce and Industry, Vietnam Association of Small- and Medium-Sized Enterprises and business and industry associations shall monitor and independently and regularly evaluate the implementation and results of implementation of the Resolution, and directly report them to the Government.

The Vietnam Chamber of Commerce and Industry shall survey and announce provincial competitiveness index and evaluate enterprises’ satisfaction in the fields of taxation, customs, social insurance, access to electric power, etc., in combination with evaluation of results and impacts of the Government’s resolutions on improvement of the business environment and national competitiveness; sum up problems faced by enterprises; assume the prime responsibility for implementing the program on provision of support for sustainable development of enterprises and wide application of the CSI in the business community; promote the participation of private sector in the public-private partnership and the program on building capacity for business associations, and directly report them to the Prime Minister.

7. The Advisory Council for Reform of Administrative Procedures of the Prime Minister shall carry out annual surveys, evaluation and disclosure of reports on administrative procedure compliance index (APCI).

On behalf of the Government

Prime Minister

NGUYEN XUAN PHUC