THE GOVERNMENT | | THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness |
No. 02/NQ-CP | | Hanoi, January 10, 2022 |
RESOLUTION
On major tasks and solutions to improve the business environment and heighten the national competitiveness
in 2022[1]
THE GOVERNMENT
Pursuant to the June 19, 2015 Law on Organization of the Government;
Pursuant to the National Assembly’s Resolution No. 32/2021/QH15 of November 12, 2021, on the 2022 socio-economic development plan;
At the proposal of the Minister of Planning and Investment,
RESOLVES:
I. ASSESSMENT OF SITUATION
Since 2014, the Government has determined that the improvement of the business environment, heightening of competitiveness and promotion of innovation toward sustainable development constitute the focus of reform and a regular important task. Thereby, the Government has annually promulgated resolutions on the improvement of the business environment and heightening of the national competitiveness (Resolutions No. 19/NQ-CP for 2014-2018 and Resolutions No. 02/NQ-CP for 2019-2021) with specific objectives and solutions, sticking to the ranking indexes of prestigious international organizations. In furtherance of Resolutions No. 19/NQ-CP and Resolutions No. 02/NQ-CP, ministries, sectors and localities have endeavored to remove hurdles and difficulties, unclogging social resources so as to attract domestic and foreign investment. As a result, Vietnam has always been considered an attractive investment destination and a dynamic economy with great openness and high growth rates in the group of high world ranking.
Through 8 years of formidable reform, Vietnam has managed to raise its position on various global rankings. Specifically, the country was ranked 67th out of 141 rivals in the Global Competitiveness 4.0 (of the World Economic Forum - WEF) in 2019[2], 10 grades higher than 2018; regarding the Global Innovation Index (of the World Intellectual Property Organization - WIPO), Vietnam maintained a good position, ranked 44 out of 132 competitors in 2021; as per the E-Government Development Index (of the United Nations - UN[3]), it was ranked 86th in 2020, 2 grades higher its position in 2018; in the Sustainable Development Index (of UN), Vietnam jumped 37 grades from the position of 88th in 2016[4] to 51st out of 165 countries and territories in 2021; as for the Global Cybersecurity Index (of the International Telecommunications Union - ITU), it was ranked 25th out of 194 countries and territories in 2020, jumping 25 grades over its 50th place in 2018.
In a number of specific domains, international organizations have continued the evaluation and ranking in 2021 such as the International Property Rights Index (of the Property Rights Alliance), Corruption Perceptions Index (of the Transparency International), Worldwide Governance Indicators (of the World Bank - WB); particularly, the World Bank evaluated that Vietnam’s governance performance in 2020 was better than previous years’ results.
The positive improvement of the business environment quality has also been clearly demonstrated through the results of the Provincial Competitiveness Index (PCI), though the degree of improvement differs among fields. In 2020, 58.2% of enterprises evaluated that the business environment was improved, a percentage markedly higher than the 2017’s result (51.7%); all 10 fields of the business environment stated in Resolution No. 19/NQ-CP and Resolution No. 02/NQ-CP have been improved, of which the fields of Starting a Business and Getting Electricity have been assessed with best improvement.
The above-said results have been attributed to great reform efforts of ministries, sectors and localities, aiming to qualitatively improve elements of the business environment and competitiveness in the fields under their respective management. From 2020 until now, the COVID-19 pandemic has exerted great impacts on people and enterprises. The Government and Prime Minister have promulgated many mechanisms, policies and solutions, aiming to remove difficulties and support enterprises and people. Such mechanisms, policies and solutions have been put into practice and appreciated by the business community and people. In the coming time, enterprises will have higher expectations of the Government’s company through the reform of institutions, regulations and administrative procedures.
However, since 2020, the reform of the business environment has tended to stand still due to the Covid-19 pandemic. The improvement in some indexes on the global rankings remains unsustainable while Vietnam’s performance or rank in not a few specific indexes has remained poor or unimproved and even dropped. In 2021, Vietnam’s score or rank in many indexes reduced as compared to that in 2020, for example, the country’s rank in the Innovation Index dropped by 2 grades (from 42nd to 44th); its Sustainable Development Index’s and International Property Rights Index’s score and position both reduced (from the 49th to 51st and from 78th to 84th, respectively); while its rank in the Corruption Perceptions Index dropped 8 grades (from 96th to 104th).
The improvement of the rank in international rankings becomes more difficult and requires greater efforts as other economies have also attached importance to reform for higher global position. Besides, many indexes can only be improved with continuous efforts in several years, especially those relating to infrastructure, human resources and environmental and social elements. Therefore, it requires stronger, more resolute and accelerated involvement of ministries, sectors and localities in the reform of the business environment as well as the sharing and cooperation of the enterprise community and people.
To achieve the objectives set in the 2021-2025 five-year socio-economic development plan and the 2022 socio-economic development plan under the National Assembly’s resolutions and, at the same time, to support enterprises to restore and develop production and business and flexibly and effectively adapt to the situation amidst the Covid-19 pandemic, the Government promulgates the Resolution following Resolutions No. 02/NQ-CP and Resolutions No. 19/NQ-CP on improving the business environment and heightening the national competitiveness and requests ministries, sectors, localities and relevant agencies as well as organizations to concentrate efforts on the implementation thereof.
II. OBJECTIVES
1. General objectives
To vigorously improve the business environment, raising the country’s position in international rankings on business environment and competitiveness in order to adapt to the development trend of the Fourth Industrial Revolution and to enhance the resilience of the economy amidst the Covid-19 pandemic; to quickly increase the number of new enterprises; to lower the rate of dissolved or operation-suspended enterprises; to reduce input costs and unofficial costs for enterprises and people. To step up the removal of difficulties and problems due to negative impacts of the Covid-19 pandemic; and to promptly assist people and enterprises for them to restore production and business and effectively and flexibly adapt to the epidemic.
By 2025, the country’s ranks in competitiveness indexes will be as follows:
a/ The Global Competitiveness 4.0 (of the WEF): among 50 leading countries.
b/ The Sustainable Development Index (of the UN): among 40 leading countries.
c/ The Global Innovation Index (of WIPO): among 40 leading countries.
d/ The E-Government Development Index (of the UN): among 60 leading countries.
dd/ The International Property Rights Index (of the Property Rights Alliance): among 60 leading countries.
e/ The Logistics Performance Index[5] (of WB): up by at least 4 grades.
g/ The Travel and Tourism Competitiveness Index (of WEF): among 50 leading countries.
h/ The International Cybersecurity Index (of ITU): Up by at least 3 grades.
2. A number of specific objectives in 2022
a/ To improve performance and raise the ranks in business environment and competitiveness indexes in synchrony with improving national credit ratings of Moody’s, S&P and Fitch.
b/ Regarding improvement of the rank on the WEF’s Global Competitiveness 4.0 (GCI 4.0) index:
- To increase the score and maintain the rank in the Burden of Government Regulation indicator[6] (B1).
- To raise the rank in the Incident of Corruption indicator[7] (B2) by 10 grades.
- To raise the rank in the Quality of Land Administration indicator[8] (B3) by at least 1 grade.
- To raise the rank in the group of Infrastructure indicators[9] (B4) by 2-3 grades.
- To raise the rank in the group of ICT Adoption indicators [10] (B5) by 2-3 grades.
- To raise the rank in group of Quality of Vocational Training indicators[11] (B6) by at least 5 grades.
- To raise the rank in the Market Capitalization indicator[12] (B7) by 2-3 grades.
- To raise the rank in the R&D Expenditures indicator[13] (B8) by 2-3 grades.
- To raise the rank in the Growth of Innovative Companies indicator[14] (B9) by 2-3 grades.
- To raise the rank in the Companies Embracing Disruptive Ideas indicator[15] (B10) by 2-3 grades.
- To raise the rank in the Financing SMEs indicator[16] (B11) by 2-3 grades.
c/ Regarding improvement of position in the WIPO’s Global Innovation Index (GII):
- To raise the rank in the group of Information and Communication Technologies (ICTs) indicators[17] (C1) by at least 5 grades.
- To raise the rank in the Knowledge-Intensive Employment indicator[18](C2) by at least 5 grades.
- To raise the rank in the University-Industry R&D Collaboration indicator[19] (C3) by 2-3 grades.
- To raise the rank in the Environmental Performance indicator [20] (C4) by 10 grades.
- To raise the rank in the group of ICTs and Organizational Model Creation indicator[21] (C5) by 2-3 grades.
- To raise the rank in the group of Online Creativity indicators[22] (C6) by at least 5 grades.
- To raise the rank in the group of Tertiary Education indicators [23] (C7) by at least 5 grades.
- To raise the rank in the ICT Services Imports [24] (C8) and ICT Services Exports[25] (C9) indicators by at least 5 grades.
d/ Regarding improvement of the position in the Property Rights Alliance’ International Property Rights Index (IPRI):
- To improve the rank in the Judicial Independence indicator[26] (D1).
- To raise the rank in the Physical Property Right Sub-index (D2) by at least 5 grades.
- To raise the rank in the Intellectual Property Right Sub-index (D3) by 2-3 grades.
dd/ To increase scores in indicators of the UN Sustainable Development Ranking’s Goal 9 - Industry, Innovation and Sustainable Development.
III. MAJOR TASKS AND SOLUTIONS
1. To further enhance the accountability and sense of initiative of ministries assigned to act as the focal point in overseeing improvement of sets of indicators (specified in Item 1, Appendix I) and ministries and sectors assigned to assume prime responsibility for the groups of indicators and sub-indicators (specified in Item 2, Appendix I).
a/ Ministries assigned to act as the focal point in overseeing improvement of sets of indicators and ministries and sectors assigned to assume prime responsibility for the groups of indicators and sub-indicators shall:
- Update, guide, urge, and examine the implementation of relevant tasks and solutions at ministries, sectors and provincial-level People’s Committees; make timely recommendations and reports to the Government and Prime Minister for the latter to remove difficulties and bottlenecks on mechanisms, policies and solutions and arising tasks for improvement of indicators under their management.
- Take the initiative in connecting with international organizations; create coordination channels for providing and updating information in a prompt and adequate manner so as to ensure objective and accurate assessment and ranking.
- Assume prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Government Office and related ministries and agencies in, formulating the reporting regime, monitoring the situation and results of improvement in the indicator sets and indicators as assigned; update such information on their reporting information systems and connect them with the Government’s reporting information system in service of direction and administration work.
b/ Ministries and agencies assuming prime responsibility for improving the business environment elements (specified in Appendix II)[27] shall continue applying solutions toward reducing the number of procedures, time, expenses and risks for enterprises, including: (i) Starting a business; (ii) Paying taxes and social insurance premiums; (iii) Dealing with construction permits and relevant procedures; (iv) Getting credit; (v) Protecting investors; (vi) Getting electricity; (vii) Registering property; (viii) Trading across border; (ix) Enforcing contracts; and (x) Resolving insolvency.
c/ The Ministry of Education and Training shall assume prime responsibility for, and coordinate with the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance and related ministries, sectors and localities in, studying the adjustment of statistical indicators in the education-training sector in order to ensure the conformity with international practices.
2. To attach importance to the implementation of following key tasks and solutions:
a/ Shortening the list of conditional investment and business lines and reforming business conditions.
b/ Concentrating on removing obstacles for investment and business activities due to overlap, contradiction, irrationality and disparity in legal provisions.
c/ Further boosting the reform of management and specialized inspection of imported and exported goods.
d/ Stepping up the reform of land registration and the renewal of land administration.
dd/ Implementing digital transformation tasks and solutions under the Prime Minister’s Decision No. 749/QD-TTg of June 3, 2020, approving the National Digital Transformation Program to 2025, with orientations toward 2030, simultaneously with administrative reform.
e/ Intensifying the reform, reducing and simplifying administrative procedures and business regulations in association with decentralization and power delegation to localities in parallel with inspection and oversight.
g/ Stepping up the application of solutions, aiming to create steady improvement of sustainable development goals.
h/ Further attaching importance to supporting people and enterprises to restore production and business and address negative impacts of the Covid-19 pandemic.
i/ Developing the innovative eco-system, supporting and encouraging innovative startups.
k/ Stepping up international cooperation activities in association with domestic reform related to business environment and raising national competitiveness.
Ministries, sectors, localities, and related agencies and organizations shall perform the specific tasks assigned in Appendix III to this Resolution.
III. ORGANIZATION OF IMPLEMENTATION
1. Ministers, heads of ministerial-level agencies and government-attached agencies and chairpersons of provincial-level People’s Committees shall:
a/ Determine the improvement of business environment and the heightening of competitiveness to be the priority central task; personally direct and be answerable to the Government and the Prime Minister for the results of implementation of this Resolution and other resolutions of the Government on improvement of the business environment and heightening of the national competitiveness.
b/ Before January 20, 2022, formulate and promulgate action programs and plans, specific documents on implementation of this Resolution, determining specific objectives, tasks and implementation schedules, projected results for every task and assigning units to take charge of implementation, then send them to the Ministry of Planning and Investment and the Government Office.
c/ Regularly inspect and oversee the progress and results of implementation of programs and plans on implementation of resolutions on improvement of the business environment and heightening of the national competitiveness; at the same time disclose inspection and oversight results; appoint units to act as the focal points in advising on, guiding, inspecting and synthesizing the situation on improvement of the business environment and heightening of the competitiveness by ministries, sectors and localities.
d/ Regularly organize dialogues and talks with people and enterprises in order to promptly grasp the policy feedback and settle difficulties and problems; ensure the official-duty disciplines on cadres and civil servants; severely handle cadres harassing and causing problems to enterprises; organize communications activities on improvement of the business environment and heightening of the competitiveness within the scope of their responsibility.
dd/ Before June 10 and December 10, 2022, send biannual and annual reports on the situation and results of implementation of this Resolution to the Ministry of Planning and Investment (the Central Institute for Economic Management) and the Government Office for the latter to sum up and report to the Government and Prime Minister at the Government’s regular June and year-end meetings.
2. The Ministry of Home Affairs shall study the incorporation of a number of indicators on assessment and ranking of the implementation of this Resolution into contents of annual surveys on administrative reform index and satisfaction index of public administrative service (SIPAS).
3. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Government Office and the National Council for Sustainable Development and Improvement of Competitiveness in, monitoring and assessing the situation and results of implementation of this Resolution, promptly report to the Government and the Prime Minister on difficulties and problems for settlement; annually publicize the monitoring and assessment results.
4. The Government Office shall apply information technology to design and collection of information in service of the direction and administration of the improvement of the business environment, heightening of the national competitiveness and sustainable development.
5. Business and trade associations shall monitor and conduct independent and regular assessment of the situation and results of implementation of this Resolution. The Vietnam Chamber of Commerce and Industry shall conduct surveys and annually publicize PCI indexes; and coordinate and incorporate the evaluation of results and impacts of this Resolution.
6. The Prime Minister’s Advisory Council for Reform of Administrative Procedures shall conduct surveys, assess and annually promulgate the Report on Administrative Procedure Cost Index (APCI).
7. The Vietnam News Agency, Voice of Vietnam, Vietnam Television and press agencies shall take the initiative in supporting ministries, agencies and localities in organizing public communication and dissemination of this Resolution widely among sectors and authorities and to people and enterprises; and intensify the monitoring and supervision of media and press agencies on the results of implementation of this Resolution.-
On behalf of the Government
Prime Minister
PHAM MINH CHINH
* The appendices to this Resolution are not translated.
[1] Công Báo Nos 141-142 (24/01/2022)
[2] In 2020 and 2021, due to impacts of Covid-19 pandemic, many international organizations did not promulgate annual ranking reports, including the Report on 4.0 Global Competitiveness of the World Economic Forum.
[3] This ranking table is promulgated once in every two years by the United Nations.
[4] 2016 was the first year the United Nations made the Global Sustainable Development (SDG) Ranking.
[5] Vietnam was ranked 39th in the latest Logistics Performance Index (2018).
[6] Pillar 1, GCI 4.0 (2019)
[7] Pillar 1, GCI 4.0 (2019)
[8] Pillar 1, GCI 4.0 (2019)
[9] Pillar 2, GCI 4.0 (2019)
[10] Pillar 3, GCI 4.0 (2019)
[11] Pillar 6, GCI 4.0 (2010)
[12] Pillar 9, GCI 4.0 (2019)
[13] Pillar 12, GCI 4.0 (2019)
[14] Pillar 11, GCI 4.0 (2019)
[15] Pillar 11, GCI 4.0 (2019)
[16] Pillar 9, GCI 4.0 (2019)
[17] Pillar 3- Infrastructure, GII, (2021)
[18] Pillar 5- Business sophistication, GII (2021)
[19] Pillar 5- Business sophistication, GII (2021)
[20] Pillar 3- Infrastructure, GII (2021)
[21] Pillar 7, Creative Products, GII (2021)
[22] Pillar 7- Creative Products, GII, (2021)
[23] Pillar 2- Human Capital and Research, GII, (2021)
[24] Pillar 5- Business Sophistication, GII, (2021)
[25] Pillar 6- Knowledge and Technology Output, GII, (2021)
[26] The Legal and Political Sub-Index, IPRI, (2021)
[27] On September 16, 2021, the World Bank notified to stop promulgating the Doing Business report, not due to the question of approach, but to datum intervention from a number of countries. Hence, the search for and enforcement of solutions to heighten the quality of business environment linking with elements from Starting a Business to Resolving Insolvency remain appropriate and useful policy solutions which should be further maintained.
Vietnamese
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