Resolution No. 139/NQ-CP dated November 9, 2018 of the Government on Promulgating the Action Program to reduce costs for enterprises

RESOLUTION

Promulgating the Action Program to reduce costs for enterprises^[1]

THE GOVERNMENT

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

Pursuant to the Government’s Resolution No. 117/NQ-CP of November 9, 2017, on the Government’s October 2017 regular meeting;

At the proposal of the Minister of Planning and Investment,

RESOLVES:

Article 1. To promulgate together with this Resolution the Government’s Action Program to reduce costs for enterprises.

Article 2. This Resolution takes effect on the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Resolution.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

GOVERNMENT’S ACTION PROGRAM TO REDUCE COSTS FOR ENTERPRISES

(Promulgated together with the Government’s Resolution No. 139/NQ-CP of November 9, 2018)

I. ASSESSMENT OF THE SITUATION

In recent years, improving the business environment, particularly cutting law compliance costs, is a focus of the Government as well as authorities at all levels and all sectors. Many government resolutions have been implemented, focusing on institutional and administrative procedure reforms and facilitating business operations. The implementation of these resolutions has contributed to reducing the burden of business costs in general and law compliance costs in particular for enterprises. However, the reality shows that there remain limitations and shortcomings, and it is necessary to continue implementing solutions to cut more costs for enterprises. According to the World Bank report, Vietnam’s business environment indicators have improved significantly, but the rankings of many indicators are still far lower than those of other countries in the region. In 2018, total taxes and insurance expenses paid by Vietnamese enterprises accounted for 38.1% of pretax profit, while those rates in Thailand and Indonesia were 28.7% and 30%, respectively. The Vietnam Chamber of Commerce and Industry’s 2017 Provincial Competitiveness Index (PCI) report shows that 59.3% of enterprises say that their peers often have to pay informal costs; leaders of about 30% of enterprises have to spend more than 10% of their time on inquiring about and complying with regulations; 44% of enterprises say that the land lease and purchase procedures are complex; and 16% of enterprises say that land prices set by the State are high.

In order to contribute to cutting costs for enterprises, and improving efficiency, competitiveness and productivity of the economy, the Government requests ministries, sectors and localities to continue implementing more drastic and synchronous solutions and reforms, especially slashing unreasonable costs, creating favorable conditions for enterprises to develop production and business.

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