Resolution No. 19-2018/NQ-CP dated May 15, 2018 of the Government on ongoing implementation of major duties and measures to improve business environment and enhance national competitiveness in 2018 and subsequent years

THE GOVERNMENT

Resolution No. 19-2018/NQ-CP dated May 15, 2018 of the Government on ongoing implementation of major duties and measures to improve business environment and enhance national competitiveness in 2018 and subsequent years

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

Pursuant to the National Assembly’s Resolution No. 142/2016/QH13 dated April 12, 2016 on the 5-year socio-economic development plan for the 2016 – 2020 period; the National Assembly’s Resolution No. 48/2017/QH14 dated November 10, 2017 on the 2018 socio-economic development plan;

At the request of the Minister of Planning and Investment,

RESOLVES:

I. REVIEW  OF CURRENT SITUATION

After 4 years of implementation of the Government’s Resolution No. 19, our country’s business environment and competitiveness has incessantly improved. In 2017, in general, ministries, sectoral administrations and local authorities took more proactive and drastic approaches to implementing measures for improving business environment and enhance competitiveness, and achieved positive results; our country’s national competitiveness index rose in ranking by five places compared to year 2016 (from 60^th/138 economies to 55^th/137 economies); our country’s business environment index rose in ranking by fourteen places (from 82^ndplace to 68^thplace out of 190 economies); our country’s innovation and creativity index rose in ranking by twelve places and was ranked 47^thplace out of 127 economies. Those are the ranks that Vietnam has ever attained till date.

However, business environment and competitiveness improvements have proved to be unsustainable and have not achieved predetermined objectives; the ranks of certain indices remain quite lower than other countries in the region while the scores have hardly been improved either for years; even some of other important indices drop in score. (i.e., performance of commodity market, quality of infrastructure, education, level of business development and technological innovation has are improved slowly; the business startup index is ranked 123^rdplace; the corporate bankruptcy handling index is ranked 129^thplace; registration of ownership and use of property lasts up to 57.5 days, and the index thereof unceasingly drops in rank and now holds the 63^thplace; contractual dispute resolution lasts 400 days and the index thereof is ranked 66^thplace, etc.). Several industries, sectors and local authorities have not yet taken such proactive and drastic action to implement duties and measures to improve business environment and enhance competitiveness, thus have achieved restricted results.

In order to accomplish the expected objective in holding a place in the ranking of business environment and competitiveness that is similar to the average ranks of ASEAN-4 countries (including such economies as Singapore, Malaysia, Thailand and Philippines), efforts to carry out the rigorous and comprehensive reform of business scale and volume in all sectors should be made.

II. MAIN TARGETS AND INDICES OF IMPROVEMENT OF BUSINESS ENVIRONMENT AND ENHANCEMENT OF NATIONAL COMPETITIVENESS

1. Try to come close to World Bank’s environment business index and World Economic Forum’s competitiveness index, World Intellectual Property Organization’s innovation index and United Nations’ E-Government index. Show great determination to accomplish objectives specified in the Resolution No. 19-2016/NQ-CP and No. 19-2017/NQ-CP on improvement of business environment and promotion of national competitiveness; by 2020, the quality of business environment in Vietnam is the same as the average level achieved by ASEAN-4 countries.

2. Focus on improving business environment indices in order to, in 2018, rise from 8^th– 18^thplace in the World Bank’s ranking; in particular, robustly improve the ranks of indices currently holding low place. Specifically including:

a) The business startup rises by at least 40 places.

b) The contractual dispute handling index rises by 10 places; the corporate bankruptcy handling index rises by 10 places.

3. Complete elimination and simplification of 50% of investment and business conditions; request elimination of business sectors and industries subject to prescribed conditions in the classification list of business sectors and industries subject to prescribed conditions as specified in the Law on Investment.

4. Cut down on at least 50% of the list of commodities and products subject to specialized inspections; robustly change the state management approach from mainly pre-inspection to mainly post-inspection; completely eradicate the situation in which a commodity is subject to specialized management and inspection carried out by more than one regulatory authority; reduce the rate of imported shipment subject to specialized inspection carried out at the customs clearance checkpoint from 25 – 27% as currently reported to under 10%.

5. Facilitate application of information technology to deal with administrative procedures and provide public services online. By the end of 2018, most of the public services which are common and related to people and enterprises are provided at the 3rd and 4th level.

6. Promote the tourism industry’s competitiveness in order to develop it into the key industry; enhance competitiveness of the logistics service industry to facilitate and reduce costs of business operations and serve the purpose of changing economic structure. Specifically including:

a) Raise the rank of the tourism industry’s competitiveness by about 10 places (currently holding 67^thplace out of 136 countries)1.

b) Step-by-step reduce logistics costs arising in the national economy to approximately 18% of GDP (currently more than 20% of GDP); raise the logistics efficiency index by roughly 10 places in rank (currently holding 64^thplace out of 160 countries)2.

III. SIGNIFICANT DUTIES AND MEASURES

1. Ministers and Chairpersons of People’s Committees of centrally-affiliated cities and provinces shall supervise and organize activities necessary for implementation of duties and measures to improve business environment, promote competitiveness within their delegated jurisdiction, and shall be held accountable to the Prime Minister for results achieved in the sectors and administrative divisions under their management. This is specified as follows:

a) Ministries and sectoral administrations finish establishing the action plan on implementation of the Resolution No. 19-2018/NQ-CP by May 31, 2018 that elaborates on objectives, duties to be implemented, legislative documents to be supplemented, modified, completion deadline, responsible entities and individuals, and supervisory and assessment methods.

b) People’s Committees of centrally-affiliated cities and provinces finish developing the action plan on implementation of the Resolution No. 19-2018/NQ-CP by May 31, 2018 that focuses on the following main duties:

- Reform administrative procedures, and improve such indices as business startup, construction licensing and other related formalities, electricity accessibility, ownership registration, use of property, tax payment and social insurance under international conventions.

- Apply information technology to provision of public services; boost payments via the banking system with respect to public sectors (e.g. taxes, electricity, water, tuition fees, medical fees and payments for social security schemes).

- Increase quality of infrastructure necessary for such sectors as tourism, medical, healthcare, security, safety and environmental sanitation at tourist sites and attractions.

- Implement necessary measures to reduce logistics costs, such as relieving congestion occurring at seaports and airports, especially Cat Lai port and Tan Son Nhat international airport, etc. to reduce petrol costs and improve turnaround time. Relieve traffic congestions on roads to Cai Mep and Thi Vai (Vung Tau city) ports to alleviate traffic overload inflicted upon Ho Chi Minh city’s ports. Command application of measures for improving management and business efficiency to seaport management units and thus reducing the consignor’s logistics costs.

- Cooperate in inspection and examination of enterprises, and minimize the frequency of inspection and examination, even including specialized ones.

- Assess administrative creativity and performance of departments, divisions and district-level People’s Committees according to department and district-level competitiveness indices.

- Implement the Government’s Resolution No. 19-2018/NQ-CP together with improving the provincial-level competitiveness index.

c) Tighten work disciplines, rules, increase professional integrity, creativity and promote work performance; direct public officers and officials, especially heads of affiliated units, to change work attitudes to serve interests of people and enterprises; immediately identify and substitute those who show hesitation in reforming administrative procedures, lifting barriers and facilitating investment and business activities, or those who abuse their authority and designation to gain personal benefits.

d) Organize implementation of single window system, fully-connected single window system and application of information technology to implementing administrative procedures and providing public services online; apply the quality management system ISO 9001 to services rendered by entities and organizations belonging to the state administrative system; commence setting up the national database of population, land and enterprises, etc. and share the database serving state management purposes; hire information technology services to help state agencies activities and outsource services related to payment and settlement; train information technology workforce.

dd) Carry out inspection, examination and audit to ensure consistency, avoidance of overlap and prevention of any impact on business activities, and compliance with the Prime Minister’s directives on corporate inspection; assure equality in the eyes of the law between enterprises.

2. Checking and streamlining of investment and business conditions: Ministries already carrying out checking and granting decisions on elimination of specific investment and business conditions shall complete formulation of the Decree amending and supplementing related decrees and submit it for the Government’s ratification in the 3^rdquarter of 2018. Ministries that have not yet carried out checking and have yet to inform checking results shall be obliged to complete checking and formulation of the plan to reduce, supplement and amend regulations on investment and business conditions by June 2018, and finish drafting the Decree amending and supplementing other Decrees on investment and business conditions in which unnecessary investment and business conditions are repealed, and submit it for the Government’s ratification in the 3^rdquarter of 2018.

3. Reform of specialized inspection regulations:

a) The Ministry of Finance (General Department of Customs) compiles and provides the list of goods subject to specialized inspection conducted by ministries vested with specialized management, based on which the list of commodities subject to specialized inspection that needs to be eliminated is proposed.

b) Ministries and sectoral administrations remove 50% of commodities and products from the list of commodities and products subject to specialized inspection in each sector as early as 2018. The list of removed commodities must describe their respective HS codes specified in the List of exported and imported commodities of Vietnam attached to the Circular No. 65/2017/TT-BTC dated June 27, 2017 of the Ministry of Finance, and must be prescribed in a single decision.

c) Before October 31, 2018, checking and proposal for revision and supplementation of relevant legislative documents should be completed with the intention of (i) changing assigned functions and authority of ministries with a view to ensuring an imported or exported commodity is manage by only one regulatory authority or entity; (ii) improving state management approach from mainly pre-inspection to mainly post-inspection practices in conjunction with applying principles of management of risks and assessment of compliance of organizations and individuals with laws, and (iii) exempting each cargo shipment from being subject to inspection, except for quarantine inspection.

d) Creating business environment which is competitive, transparent, and providing incentives for development of markets in testing, inspection and certification services; break the monopoly of several organizations designated by ministries vested with specialized management in the current situation.

4. The Ministry of Planning and Investment:

a) Preside over and cooperate with ministries and Finance, Labor – War Invalids and Social Affairs authorities and Vietnam’s Social Security offices and other relevant agencies in improving the rank of business startup index to the targeted rank; raise the place of the business startup index by at least 40 places in rank.

- Ensure release of corporate information coincides with registration of enterprise establishment; and is completed by June 2018.

- Recommend reducing corporate information release fee by at least 50%.

b) Preside over and cooperate with relevant ministries and authorities in (i) composing the Law amending and supplementing certain articles of the Law on Investment, the Law on Enterprises which is turned in for the Government s ratification by June 2019, and (ii) codifying the Law amending and supplementing certain articles of the Law on Public Investment which is submitted for the Government’s ratification by the 3^rdquarter of 2018 in order to address any irrationality, ambiguity, confusion, overlapping, conflict and contrast existing in information related to investment and business.

c) Preside over and cooperate with the Ministry of Justice, the Government’s Office, other relevant ministries and sectoral administrations in preparing a report on the List of sectors and industries removed from the List of business sectors and industries subject to prescribed conditions, annexed to the Law No. 03/2016/QH14 amending and supplementing Article 6 and Appendix IV of the Law on Investment No. 67/2014/QH13, for submission to the Government before being presented to the National Assembly Standing Committee by October 2018.

d) Preside over and cooperate with the Supreme People’s Court in posting information about bankruptcy cases and the list of creditors on the National Portal for enterprise registration.

dd) Preside over and cooperate with the Ministry of Science and Technology, relevant ministries and sectoral administrations in considering inclusion of certain innovation indices in the national statistics and carry out statistical activities on a periodical basis.

5. The Ministry of Justice:

a) Preside over and cooperate with relevant ministries and authorities in drafting the Prime Minister’s Decision on introduction of the project on completion of legal framework on contracts and resolution of civil disputes through the non-court procedures with a view to ensuring consistency, conformity, enforceability and protection of property rights.

b) Concentrate on handling problems and difficulties arising in the practical context of civil judgement enforcement and bankruptcy resolution activities.

c) Preside over and cooperate with the Ministry of Natural Resources and Environment, the Ministry of Transport, the Ministry of Construction, the Ministry of Public Security and other relevant authorities in proposing the project of Law on property registration or recommending amendments or supplements to legislative regulations on registration of property in relevant laws (e.g. Land Law and Housing Law) in order to make property registration procedures easily accessible to people and enterprises, and protective towards their property rights.

d) Cooperate with the State Bank, relevant ministries and sectoral administrations in continuing to research and propose solutions to establishing and launching the modern system for secured transaction registration, and developing more policies on protection of the creditor’s rights, etc. with the aim of contributing to raising the score and rank of the credit accessibility index according to the World Bank’s rating.

6. The Ministry of Finance:

a) Continue to implement measures for improving the tax payment index according to the objectives set out in the Resolution No.19; strive to reduce tax payment time (excluding time of payment of social security contributions) to 119 hours. Publicly disclose the tax database, assure inspection of 100% of tax refund claims in question and strive to, by 2020, ensure that 100% of taxpayer’s complaints and appeals are handled within the legally prescribed duration. Ensure public disclosure and transparency of regulations laid down in the Law on Tax Management, processes for inspection, complaint resolution and VAT refund.

b) Collaborate with the Ministry of Planning and Investment in improving the score and rank of business startup index according to the World Bank’s approach.

c) Eradicate difficulties related to determination and consultation on determination of dutiable values of exported and imported commodities in compliance with laws and the Customs Valuation Agreement.

d) Deal with enterprise’s difficulties in working hours of express delivery Customs Subdepartments with a view to requesting them to assign officers who are 24/7 in charge of customs procedures for exported and imported goods shipped through express delivery services.

dd) Deal with difficulties arising from export and import duties, including those related to exemption of taxes on refuse, waste products, excess raw materials and inputs which have already been imported for processing under Clause 4 Article 10 of the Government’s Decree No. 134/2016/ND-CP dated September 1, 2016 elaborating on certain articles and measures for implementing the Law on Export Duty and Import Duty.

e) Preside over and cooperate with the Ministry of Agriculture and Rural Development, the Ministry of Health, and the Ministry of Industry and Trade, in amending regulations on fees for testing and quality inspection of goods, including regulations on fees and charges laid down in the following Circulars: 230/2016/TT-BTC, 279/2016/TT-BTC, 284/2016/TT-BTC, 285/2016/TT-BTC and 286/2016/TT-BTC, with the aim of reducing the fee amount and limiting the maximum amount of fee charged for a single shipment.

g) Apply information technology over management and supervision of goods, means of transport carrying exported, imported goods and in-transit ones currently under customs supervision, and transport equipment that enters, exits or transits through/at the border checkpoint, and to serve the purpose of ensuring consistent connection of information about imported and exported goods between regulatory authorities, specialized inspection units and the General Department of Customs and the single-window National Portal, and between customs authorities and logistics service providers.

h) Preside over and collaborate with relevant ministries and sectoral administrations in efficiently implementing the national and ASEAN’s single-window system. The specific actions shall be taken in 2018 as follows: (i) Put to use all 130 new administrative formalities as specified in the general plan for implementation of the national and ASEAN’s single-window system for the 2016 – 2020 period that is attached to the Prime Minister’s Decision No. 2185/2016/QD-TTg dated November 14, 2016; (ii) Appeal to the Government to issue the Decree prescribing implementation of administrative procedures through the national and ASEAN’s single-window system, and specialized inspection over imported and exported goods; (iii) Preside over and cooperate with the Ministry of Information and Communications, the Ministry of Public Security and other relevant ministries and sectoral administrations in developing and operating the information technology system ancillary to the national and ASEAN s single-window system, and ensure connectivity, systemization, security and safety of information and database; (iv) press ahead with the plan for investment in the standby system serving the needs of the national single-window system.

i) Preside over and cooperate with the Ministry of Public Security, the Ministry of Transport and other relevant units in implementing the national single-window aviation system under the Prime Minister’s Decision No. 43/2017/QD-TTg dated September 26, 2017 prescribing responsibilities for implementation of procedures applied to aircraft on entry, exit and in transit through the national single-window system with a view to ensuring concordance and consistency with other relevant legislative documents.

7. The Ministry of Transport shall preside over and collaborate with ministries, entities and local authorities in:

a) Taking practical actions and reducing logistics costs:

- Taking actions to reduce shipping costs such as examining and reducing tolls, especially BOT road toll; moving BOT plazas that are improperly located; carrying out non-stop electronic BOT toll collection. Immediately re-establishing order and solving the situation in which shipping agencies, at their discretion, quote fees for imported and exported goods.

- Research and complete the planning for construction of inland clearance depots (ICD) nationwide with a view to ensuring equal distribution of these depots between geographical regions, balancing of exported and imported goods, and increase in two-way transportation rate, etc. as an approach to granting subsidies for consignors to bring down their transportation and customs clearance fee.

- Provide advantages for shipping agencies in connecting and sharing information between consignors and shipping agencies with the aim of increasing the two-way transportation rate and promoting business effectiveness of shipping agencies.

b) Implementing measures for developing logistics infrastructure:

- Research and develop the inland water transportation system; research step-by-step construction of inland ports having modern equipment and facilities, especially those located in the Mekong Delta, in order to build transportation connections to seaports of Ho Chi Minh city and Vung Tau city, and those located in the Red River Delta in order to build transportation connections to Hai Phong city’s international ports.

- Authorize the Vietnam Railways Corporation to cooperate with relevant entities in (i) researching and putting to use freight trains, especially those carrying goods exported to China and Hai Phong city s international ports; (ii) promoting capacity for rail transportation of freight, reducing transport time, elevating reliability and quality of services; ensuring better connections between rail, road, marine, aviation and inland water transport systems.

- Research and propose solutions to upgrading and developing airport and air transport infrastructure systems; encourage private sector involvements in developing, managing and operating airports.

- Develop logistics service trading floor in order to optimize two-way freight and container transportation.

- Consider investing in expansion of traffic construction works, storage facilities and logistics service centers running along routes and corridors connecting seaports and inland ports of Vietnam with those of Laos, Cambodia, Thailand and South China.

- Conduct research into development of aviation logistics centers, particularly those that connect airports and serve special goods (e.g. dangerous goods, high-value goods, hi-tech goods and goods that need to be specially stored, etc.).

- Commence implementing the scheme of orientation towards development of 03 aviation logistics centers serving the needs of Noi Bai, Da Nang and Tan Son Nhat international airport as specified in the Prime Minister’s Decision No. 236/QD-TTg dated February 23, 2018 approving revision of the planning for development of air transport by 2020 with vision towards 2030.

8. The Ministry of Culture, Sports and Tourism shall preside over and collaborate with ministries, entities and local authorities in:

a) Researching and developing significant tourism products such as marine tours, cultural tours and ecological tours; locating marine leisure and holiday destinations that are fascinating to tourists. Develop more new and promising tourism products such as business combined tours, community volunteer tours, adventure tours, medical and healthcare tours; golf tours; leisure and recreational tours, theme park tours, conference and art performance tours.

b) Promoting training and education of tourism human resource, including executive officers, managers, administrators and vocational workers:

- Elevate competency of nationwide training centers in providing training and educational services. Develop the staff of tourism teachers, lecturers and trainers.

- Adopt incentive policies that encourage enterprises to take part in training of tourism human resource. Stimulate training organized by tour and travel agencies, non-public and foreign-invested training establishments.

- Promote international cooperation in developing tourism human resource and absorb international technological innovations.

c) Developing tourism infrastructure and tourist accommodation establishments that have high quality and promoting tourism service quality:

- Check legislative regulations on tourism and related services; rescind or request rescission of improper and outdated regulations; carry out robust reform of administrative procedures; improve business freedom, increase safety level and reduce business costs.

- Consider the progress of investment in development of existing tourism centers and infrastructure systems; point out difficulties and problems; directly give assistance in resolving them and expedite expansion investments.

- Conduct a research to make a decision on hiring consultants (maybe foreign professional ones) that help formulate the plan for use of tourism resources (e.g. natural and cultural resources); develop tourist centers and attractions; invite bids for public-private partnership contracts on construction, use and development of tourism resources, etc.

- Collaborate with the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Transport and other relevant authorities in researching and proposing incentive policies for development of tourism infrastructure.

- Call for investments in developing large-scale and high-quality tourism products at key areas and zones playing a role as the driving force for development of tourism industry, especially at zones planned to be developed into Vietnam’s special economic zones in the years to come.

- Standardize and control quality of products, services and amenities ancillary to the tourism industry, ensure safety, security, environmental sanitation and sustainable development.

- Continue assessing and building toilets, rest stops, restaurants and shopping centers that serve tourist’s needs.

- Promote connectivity and ensure consistency in terms of quality of tourism product supply chains.

d) Developing the tourism industry in a sustainable manner:

- Research, formulate and enforce the set of criteria for sustainable tourism development (based on good international standards and experience).

- Research and propose a mechanism that enables people and scientists to give their opinions on tourism planning schemes, projects, and supervise compliance during the process of implementing such mechanism.

dd) Increasing tourism promotion and marketing programs

- Reform and diversify tourism promotion approaches; strengthen tourism promotion by encouraging international travel agencies offering tours in Vietnam.

- Encourage enterprises to open overseas tourism marketing offices, participate in large international tourism fairs and advertising campaigns via the international and national media as well as e-marketing activities; pay attention to advertising tours at source markets

- Raise awareness of significance and importance of business affiliation, cooperation and equitable sharing of benefits among partners in the tourism service chain.

- Prepare materials and intensify training and communication programs for development of community tours, spread and raise awareness of community tourism.

- Accelerate research and development of the market database.

- Establish a mechanism for concentration of resources necessary for national tourism promotion activities, and ensure flexibility and a close rapport with sectoral administrations, local authorities and enterprises.

- Reorganize and rearrange domestic tourism fairs to avoid dispersing and concentrate resources, elevate professionalism of fairs organized at the national and international level.

- Use resources extracted from the Tourism Development Fund for carrying out tourism promotion activities.

e) Improving efficiency in state management of the tourism industry:

- Robustly apply the set of criteria for evaluation of tourist destinations of local jurisdictions.

- Consider applying scientific and technological advances, and developing smart tourism.

g) Consider radically changing specialized inspections of imported goods and articles, particularly those imported via the express delivery service.

9. The Ministry of Public Security shall preside over and collaborate with the Ministry of National Defence, the Ministry of Foreign Affairs, the Ministry of Culture, Sports and Tourism and other ministries, entities and local authorities in:

a) Considering and proposing modification of visa regulations:

- Research and propose perfection of currently enforceable policies on visa, including visa waiver, grant of visitor visa and e-visa, as follows: Expanding the scope of the visitor visa waiver program to cover more eligible visa applicants, granting visa online (Visa Online), simplifying procedures for application for and approval of grant of visa at the immigration checkpoint (Visa On Arrival).

- Research and propose revision and supplementation of certain applicable regulations with a view to (i) granting citizens of 12 countries already exempted from visa3an extension of the duration of visa waiver from 15 days to 30 days to match the time length of trans-Viet tours and the number of tourist’s holidays; (ii) adding several countries exempted from visitor visa requirements4, (iii) extending the duration of the visitor visa waiver program from “a single year” to 5 years or 10 years so that aviation and tourist agencies feel safe to make their fairly massive investment in tourism promotion projects on the markets; and (iv) repealing the regulation "the minimum interval between an entry and the preceding exit from Vietnam is 30 days”.

b) Amending the regulation on documentation requirements for application for circulation of motor vehicles and motorcycles with a view to revoking the regulation prescribing submission of the form of declaration of origin of imported motor vehicles and motorcycles.

10. The Ministry of Industry and Trade shall preside over and collaborate with ministries, entities and local authorities in:

a) Maintaining ongoing efficient implementation of measures for reducing the time of access to electricity.

- Establish the process for implementation of application procedures for access to electricity, ensure transparency and consistency in implementation procedures and duration as well as responsibilities for processing of application held by each authority.

- Implement the fully-connected single-window system between electricity entities and state regulatory authorities in order to carry out multiple tasks related to licensing with the aim of reducing the time of processing of application by electricity administrations and other state regulatory authorities to no more than 10 days. Pilot the above-mentioned system in Ho Chi Minh city within the 3^rdquarter of 2018 and in other cities or provinces within 2018.

- Monitor, assess and oversee improvement of the electricity access index.

b) Monitoring and overseeing sufficient and consistent enforcement of streamlining of regulations on investment and business conditions, and enhancement of effectiveness in state management. Continuing to check and propose repeal and simplification of regulations on investment and business conditions; reform and promote effectiveness in state management.

c) Undertaking and liaising with the Ministry of Science and Technology and the Ministry of Health in reviewing and introducing technical regulations on food products under its jurisdiction. By end of 2020, basically complete main technical regulations on food safety that are applied to groups of subjects and conform to international standards.

Reviewing Vietnamese regulations on other products and commodities under the control of the Ministry of Industry and Trade based on which appropriate measures for adjusting and reducing costs, and promoting competitiveness of commodities are suggested.

d) Offering support to logistics service providers and improving logistics service quality:

- Assist logistics service providers in promoting business and operational competences for the purpose of raising business effectiveness.

- Cooperate with the Ministry of Finance, the Ministry of Transport and business associations in stimulating outsourcing of logistics services; advise consignors to use more services provided by logistics service enterprises with orientations towards professionalism and rational distribution of personnel working in the supply chain.

- Encourage several industrial parts and export processing zones to provide logistics services in the closed-loop system in order to help enterprises reduce raw material and product shipping time and costs.

11. The Ministry of Science and Technology:

a) Presiding over and cooperating with sectoral regulatory ministries in:

- Scrutinizing radical revision of enforceable regulations on procedures for declaration of conformity with prescribed standards and regulations wherein manufacturers shall be responsible to make such declaration which is required for a line of products but not for each product item or batch; radical modification of applicable regulations on commodity quality inspection procedures with an orientation towards mainly post-inspections in conjunction with applying risk management principles and assessing compliance of specific enterprises; relief of the situation under which an imported item is subject to both declaration of conformity and inspection of quality of specific shipments of goods, and the situation under which two-step inspection procedures are implemented by two different authorities and entities.

- Fully carrying out responsibilities for and effectively performing the tasks of presiding over implementation of the Law on Technical Standards and Regulations, the Law on Quality and Commercial Products; monitoring and overseeing guidance on and implementation of these laws by sectoral ministries and ensuring consistent and compliant implementation of provisions laid down in these laws. Checking and requesting relevant ministries to promptly remove goods subject to specialized inspection that they have already expanded outside the scope of application of laws.

- Promptly and sufficiently formulating and issuing the code of national technical regulations and standards for quality of products, commodities and for management of the production and service rendering process.

- Providing favorable environment and incentives for development of testing, inspection, assessment and certification services, etc. in order to earn customers trust in quality of products, goods and services.

- Reforming methods of state management of quality of products, commodities and services with a view to enabling manufacturers, traders and importers to have access to favorable conditions; carrying out monitoring, oversight, assessment, examination and inspection activities based on evaluation of risk level and compliance of enterprises with laws; increasing the penalty amount and imposing strict sanctions for violations against regulations on quality of products, commodities and services.

- Preside over scrutinizing proposal for revision of laws on specialized management of products and commodities (including the Law on Food Safety) in order to satisfy the needs for reform of administrative procedures and the commitments made in new-generation free trade agreements.

b) Developing and upgrading national innovation systems, innovation centers and technology incubators; making enterprises become the center of and stimulant to innovation.

c) Building the database and releasing a full number of information about research and application results achieved from fulfillment of scientific and technological duties funded by the state budget before the 4^thquarter of 2018.

d) Presiding over and collaborating with relevant ministries and entities in reviewing and proposing adjustments to assignment of tasks of implementing innovation indices.

12. The Ministry of Information and Communications:

a) Focusing on applying information technology and implementing online public services within its jurisdiction.

b) Researching, reviewing and proposing revision and supplementation of the Resolution No. 36a/NQ-CP dated October 14, 2015 on e-Government to fit into the digital economic environment and establishment of the e-Government.

c) Cooperating with relevant ministries and sectoral administrations in imperatively reviewing and proposing modification and supplementation of the legal framework for telecommunications and game cards; strictly controlling issue and use of telecommunications and game cards of telecommunications companies; tightening management of supply of online electronic games in order to prevent forms of disguised and illegal gambling.

d) Accelerating the progress in completion of the national data integration axis to build the data connection between ministries and sectoral administrations that serves the needs of management and implementation of electronic transactions.

dd) Instructing ministries and sectoral administrations to strengthen application of information technology and provision of online public services at a high level; receiving submitted documentation and informing a decision granted after handling of administrative procedures via public postal services in order to help people and enterprises implement administrative procedures more effectively.

13. The Ministry of Natural Resources and Environment:

a) Presiding over and cooperating with ministries, People’s Committees of centrally-affiliated cities and provinces in taking necessary actions to reduce the time of registration of ownership and use of property to 20 days; revoking unnecessary documents, simplifying information included in submitted documentation, formalities and building electronic connections in handling administrative procedures for grant of land use right certificate, land allocation, land lease, land registration and grant of certificate of ownership of construction works, as well as administrative procedures for determination of financial obligations arising from land.

b) Presiding over and cooperating with ministries and entities in codifying the Law on revision and supplementation of certain articles of the Law on Land and other land-related legislation; codifying the Law on revision and supplementation of certain articles of the Law on Environmental Protection and legislative regulations related to environmental protection; ensuring consistent regulations on land, environmental protection and elimination of difficulties faced by enterprises. The aforesaid tasks shall be due to complete in June 2019.

c) Researching, amending and supplementing regulations aimed at not applying administrative procedures for "Registration of environmental protection plan” to medium-voltage power projects because of the fact that these projects do not give rise to environmental pollution issues.

d) Researching, amending and supplementing regulations related to inspection and examination of environmental protection with a view to carrying out regular oversight, inspection and examination depending on level of risks of environmental pollution and level of compliance of manufacturing and business entities with legislation on environmental protection.

dd) Enabling courts to have access to information about registration of land and associated property during the process of resolution of disputes over land-related property in order to shorten the time of and prevent errors arising from resolution of civil and commercial trading disputes.

e) Presiding over and cooperating with ministries and People’s Committees of centrally-affiliated cities and provinces in researching and proposing revision and supplementation of regulations on wastewater in order to ensure they adapt to the reality and conform to international conventions covering the fish processing industry:

- Create the proper regulatory framework for agreement entered into between fish factories in industrial zones and Management Boards of industrial zones established in provinces in order to ensure equality and harmony during the process of application of technical regulations on wastewater discharged from fish processing activities.

- Agree on application of the technical regulation QCVN 02-20:2014/BNNPTNT to wastewater before being discharged from tra catfish culture ponds into the receiving environment.

- Review, revoke and amend indicators (e.g. phosphorus, ammonium and nitrogen, etc.) of the National technical regulation on wastewater released from fish processing facilities; complete such works in 2018.

- Issue directive documents on strict compliance with the Government’s Decree No. 154/2016/ND-CP dated November 16, 2016 on the environmental protection fee for wastewater, which do not require fish enterprises to undertake sampling, testing and pay the environmental protection fee with respect to environmental indicators that are not specified in the QCVN 11:2015.

g) Presiding over and cooperating with the Ministry of Finance in correcting irrationality of the time of refuse import deposit under the provisions of Clause 1 Article 59 of the Government s Decree No. 38/2015/ND-CP dated April 24, 2015 on waste and refuse management with a view to ensuring that enterprises shall only be obliged to submit deposit certificates at the time of application for customs clearance of imports.

h) Multiplying inspection and examination of compliance of local authorities with regulations on administrative procedures in the natural resource and environment sector; imposing strict and timely penalties for such violations as requiring more complicated procedures and documentation, failing to strictly comply with regulations on public disclosure and transparency of administrative procedures.

14. The Ministry of Agriculture and Rural Development:

a) Researching, amending and supplementing regulations on rating of enterprises and products during the process of specialized management and inspection of imported fishery products that is prescribed in the Circular No. 26/2016/TT-BNNPTNT dated June 30, 2016 on quarantine of animals and aquatic animal products in conformity with the principles of risk management and identification of priority lanes.

b) Consider taking early actions to dealing with difficulties faced by enterprises as follows: (i) two-stage animal quarantine procedures carried out at two levels of veterinary authority; (ii) the definition "animal product", which is given in the Appendix I of the Circular No. 25/2016/TT-BNNPTNT dated June 30, 2016 prescribing quarantine of terrestrial animals and terrestrial animal products, and Appendix 22 of the Circular No. 24/2017/TT-BNPTNT dated November 15, 2017 issuing HS code schedule of imported and exported specialized goods under the control of the Ministry of Agriculture and Rural Development, causing the scope of goods subject to animal quarantine to be broadened unnecessarily (quarantine should be imposed on only fresh, live or preliminarily processed animal products); (iii) the situation in which two entities inspect a shipment or a single entity carries out inspection in accordance with two laws, but implement two different sets of procedures and then confer two separate certificates; (iv) unsolved problems arising from quarantine and quarantine and fee for quality inspection of animal feeds and bulk raw materials imported as ingredients of finished animal feeds.

Conduct a research on application of regulations on exemption from declaration of conformity prescribed in Clause 2 Article 4, exemption from quality inspection prescribed in Clause 1 through Clause 7 of Article 13 of the Government s Decree No. 15/2018/ND-CP dated February 2, 2018 elaborating on implementation of certain articles of the Law on Food Safety covering management of quality of animal feeds.

c) Presiding over and cooperating with the Ministry of Science and Technology and the Ministry of Health in reviewing and introducing technical regulations on food products under its jurisdiction by end of 2020, and basically completing main technical regulations on food safety that cover groups of applied subjects and conform to international standards.

d) Recommending the Prime Minister to consider repealing, amending or supplementing the Official Document No. 1152/TTg-KTTH dated July 7, 2010 on strengthened management of imported frozen products with a view to applying risk management principles and allowing importing enterprises exhibiting their compliance in the past to move freight to their warehouses for quarantine purposes in accordance with regulations in force.

dd) Involving private stakeholders in substantially investing in testing services; verifying test result services provided by designated private testing laboratories outside jurisdiction of the National Agro-forestry and Fisheries Quality Assurance Department with respect to grant of the food safety and hygiene certificate (Credentials).

15. The Ministry of Health:

a) Presiding over and cooperating with the Ministry of Science and Technology in issuing national standards and technical regulations for products and commodities under its jurisdiction. If national standards and technical regulations have yet to be issued, specific food safety indicators should be put to use and completed in 2018. By end of 2020, main technical regulations on food safety for groups of covered subjects must be basically completed and conformable to international standards.

b) Researching, revising and supplementing the Government’s Decree No. 09/2016/ND-CP dated January 28, 2016 on food fortification with micronutrients with a view to (i) repealing the regulation “salt used for processing foods must be fortified with Iodine” laid down in Point a Clause 1 Article 6; (ii) repealing the regulation “wheat flour used for processing foods must be fortified with iron and zinc” laid down in Point b Clause 1 Article 6. Instead, food processing enterprises are only advised to use these micronutrients.

c) Commanding healthcare facilities and the Medical Examination Council to connect their healthcare databases; data on grant of documents and papers used for registering social security covers with the Ministry of Health and Vietnam Social Security, and carrying out electronic transactions to serve the needs of state management of health insurance, social security and payment of medical costs; paying social security claims and covers. Issuing professional processes, therapy instructions and requirements for payment of health insurance covers in full and in detail for the purposes of carrying out electronic inspections.

d) Cooperating with the Ministry of Finance (General Department of Customs) in guiding and effectively implementing the Government’s Decree No. 15/2018/ND-CP dated February 2, 2018 on food safety in order to make significant changes in specialized management and inspection of exported and imported goods, and serve as the prerequisite for reform of administrative procedures existing in other specialized management and inspection sectors.

dd) Cooperating with the Ministry of Agriculture and Rural Development in researching and establishing documents prescribing the safety limit of indicators of chemicals and antimicrobials contained in domestically-consumed fish products which is equivalent to that in exported fish products.

16. The Ministry of Construction:

a) Accelerating codification of the Law on Revision and Supplementation of several articles of the Law on Construction, the Law on Housing, the Law on Real Property Business and the Law on Urban Planning for submission to the National Assembly to seek its decision within May 2018.

b) Continuing to accelerate reform of construction license-related administrative processes and procedures; apply information technology and carry out construction licensing procedures online (including assessment of fundamental designs, engineering designs and grant of construction license) in order to reduce costs, particularly unofficial costs.

17. The State Bank of Vietnam shall continue to effectively implement measures for improving and clarifying credit information, and provide enterprises, organizations and individuals in all economic sectors with equality and advantages to have access to credit funds according to market regulations.

18. The Ministry of Labor, War Invalids and Social Affairs Finance shall preside over and cooperate with relevant ministries and sectoral administrations in:

a) Reviewing, revising and supplementing social security and unemployment insurance policies with the aim of ensuring effective implementation of these policies and promoting enterprise’s growth. Appeal the Government to seek the National Assembly s ratification of correction of difficulties or problems existing in legislative Codes relating to social security – salary – trade union.

b) Presiding over and cooperating with the Vietnam Social Security and the Ministry of Planning and Investment in researching combination of labor registration procedures and social security registration procedures in order to improve the business startup indicator.

c) Issuing a full number of technical regulations on products and commodities within its jurisdiction in 2018.

d) Promoting electronic transactions:

- Allow enterprises and entities to submit their registration of labor online; create the labor management database and connect it with the database of Vietnam Social Security.

- Direct the Department of Labor, War Invalids and Social Affairs of centrally-affiliated cities and provinces to inform the Ministry of Labor, War Invalids and Social Affairs and the Vietnam Social Security of the updated occupational safety and sanitation, labor and employment database in order to carry out electronic transactions arising in the social security and unemployment insurance sector.

dd) Revising regulations on occupational safety and hygiene training programs with a view to promoting private sector involvements in such programs; researching and proposing authorization granted to enterprises to organize training and drilling programs on their own for employees who do not work under strict occupational safety and hygiene requirements; reviewing and reducing conditions and administrative procedures under which enterprises organize training on their own for their officers in charge of occupational safety, healthcare and employees working under strict occupational safety and hygiene requirements.

19. The Ministry of Education and Training:

a) Imperatively reviewing and proposing annulment and modification of business requirements within its jurisdiction in accordance with the Prime Minister s directives.

b) Completing policies on improvement of quality of training institutions; developing encouragement mechanisms and policies for educational quality assessment activities.

c) Granting training establishments extended autonomy over enrolment, finance, training program, curriculum and tests; facilitating provision of educational and training services according to market mechanisms in conjunction with strict control of training quality and graduate output.

d) Accelerating drafting of the Law on Revision and Supplementation of certain articles of the Law on Education and the Law on Revision and Supplementation of certain articles of the Law on Higher Education.

dd) Establishing and making annual disclosure reports on indicators showing the local educational growth; continuing to implement the Project on measurement of people s satisfaction with public educational services.

20. The Ministry of Foreign Affairs:

a) Boosting political and diplomatic propagation programs to encourage partners to facilitate Vietnamese enterprises’ investments and trades in overseas countries.

b) Cooperating with relevant ministries and sectoral administrations in promoting effectiveness in trade, investment and tourism promotion activities; further calling for foreign investments in development of the tourism and logistics industry.

21. Vietnam Social Security:

a) Continuing to promote application of information technology to submit social security declarations, collect social security contributions and process application for payment of social security, health insurance and unemployment insurance benefits online; striving to reduce the time of processing of application for social security participation to 49 hours.

b) Developing the health insurance verification information system, increasing quality of health insurance verification, especially e-verification, with the aim of boosting effectiveness in management and use of health insurance schemes and assurance of interests of insured patients.

c) Reforming managerial manners, reducing personnel, costs and improving effectiveness in operations of Vietnam Social Security; reforming methods and improving effectiveness in management of Vietnam Social Security Fund.

22. Government’s Office:

a) Arranging for and carrying out inspection and supervision of reform of administrative procedures, adopting the single-window and fully-connected single-window system for handling administrative procedures. Monitoring, expediting and advising use of online level-3 and 4 public services by ministries, sectoral administrations and local authorities.

b) Continuing to enhance effectiveness in receipt, sorting and cooperation in handling of complaints, appeals and opinions of enterprises and people via the Government s website.

c) Presiding over and cooperating with the Ministry of Planning and Investment, the Ministry of Science and Technology, the Ministry of Information and Communications, the Ministry of Transport, the Ministry of Culture, Sports and Tourism and other relevant entities in establishing more Groups of inspection of implementation of this Resolution. Using outcomes of implementation of this Resolution as the important basis for evaluation of effectiveness in operations of specific ministries, entities and local authorities which is carried out in the Government’s regular meeting held in December each year.

23. The Prime Minister’s Consulting Council for reform of administrative procedures

Continuing to research and propose initiatives for reform of regulatory framework and administrative procedures; conducting the independent evaluation of removal, reduction and simplification of specialized inspection procedures, business conditions and costs of enterprises by ministries, sectoral administrations and local authorities; continuing to hold dialogues between state agencies and corporate communities about any difficulty or problem arising from implementation of regulations and administrative procedures relating to manufacturing, business, investment and trading activities.

24. The Vietnam Chamber of Commerce and Industry, Vietnam Lawyers Association, Vietnam Bar Federation, Business Associations and Trade Associations:

a) Conducting independent survey and evaluation of quality of administrative procedures and submitting recommendations to the Government.

b) Vietnam Chamber of Commerce and Industry shall carry out investigations and release annual reports on the provincial competitiveness index (PCI); assisting and guiding provincial People’s Committees for the purpose of improving PCI in conjunction with implementation of tasks specified in the Resolution No.19;  researching and evaluating enterprise’s satisfaction with such sectors as taxation, customs, social security and electricity access, etc.; intending to allow corporate communities to give credit rating to ministries, sectoral administrations and local authorities.

c) Organizing opinion polls on policies, difficulties or issues arising from implementation of administrative procedures by enterprises and investors in order to send their feedbacks to competent authorities for their on-time solutions which are then published via mass media.

d) Cooperating with ministries, entities and business associations in developing encouragement programs that help enterprises draw up the strategy for competition, apply scientific and technological advances, improve productivity, build brands and fulfill their corporate social responsibilities. Assisting enterprises in implementing programs for sustainable development, improving competitiveness and strengthening international integration.

dd) Cooperating with ministries, construction administrations and initiating the program for enhancement of operational capacity of Vietnam s business associations.

e) Cooperating with ministries and sectoral administrations in applying the corporate sustainability indices to develop programs for support for enterprise s sustainable growth. Ranking enterprises annually by applying the CSI indices.

25. The Government shall authorize the Ministry of Justice and the Ministry of Planning and Investment to collaborate with the Supreme People’s Court and the Supreme People’s Procuracy in researching and proposing solutions to improving contract dispute handling and corporate bankruptcy handling indices.

IV. IMPLEMENTATIONORGANIZATION

1. The Ministry of Planning and Investment shall act as a centre monitoring improvement of business environment indices; monitoring and assessing conditional business sectors, industries and business conditions; preparing a consolidated report presented to the Government at regular meetings held at end of each quarter or year.

2. The Ministry of Science and Technology shall act as a centre monitoring improvement of innovation indices.

3. The Ministry of Information and Communications shall act as a centre monitoring application of information technology, provision of online public services, receipt of submitted documentation, informing a decision granted after handling of administrative procedures via public postal services; proposing solutions to promoting efficiency and improving the e-Government index.

4. The Ministry of Culture, Sports and Tourism shall act as a centre monitoring improvement of competitiveness indices in the tourism industry.

5. The Ministry of Transport shall act as a centre monitoring reduction in logistics costs and improvement of logistics-sector competitiveness indices.

6. These ministries playing central roles shall assume the following responsibilities:

a) Implementing, expediting and checking implementation of this Resolution at Ministries, sectoral administrations and People s Committees during the process of implementation of measures and tasks aimed at improving indices in the sectors under their jurisdiction.

b) Making a performance review report on improvement of indices; submit proposals or reports to the Prime Minister on legal framework, tasks and measures aimed at improving indices under their delegated authority.

7. Chairpersons of People’s Committees of centrally-affiliated cities and provinces shall directly give their commands over and bear responsibility to the Prime Minister for implementation of the Resolution No. 19; shall consider that this is the task given top priority in a province or city.

8. The Ministry of Information and Communications, Vietnam News Agency, Voice of Vietnam and Vietnam Television shall act on their own initiative in cooperating with the Central Propaganda Department, ministries, entities and local authorities in running communication programs to profoundly propagate this Resolution amongst sectors and administrative levels; further monitoring and supervising communications agencies and press agencies with respect to results achieved after implementation of this Resolution.

9. Vietnam Fatherland Front and socio-political organizations shall cooperate with ministries, entities and local authorities in supervising implementation of this Resolution under the 2013 Constitution and the Politburo’s Decision on supervision and social opinion poll of the Vietnam’s Fatherland Front and other socio-political organizations.

10. Ministers, Heads of Ministry-level agencies, Governmental bodies, and Chairpersons of People’s Committees of centrally-affiliated cities and provinces:

a) Regularly examining and supervising progress and results of implementation of the Program and Plan of Action on implementation of the Resolution No.19 on improvement of business environment and national competitiveness.

b) Strictly complying with reporting regulations. Prior to the 15^thday of the last month of a quarter and the 15^thday of December, preparing a quarterly and annual review and evaluation report on implementation and implementation results for submission to the Government’s Office and the Ministry of Planning and Investment for report to the Government and the Prime Minister in the Government s regular meeting in end of a quarter and year./.

For the Government

The Prime Minister

Nguyen Xuan Phuc

APPENDIX

DOCUMENTS STATING REQUEST FOR REPEAL, AMENDMENT OR SUPPLEMENTATION
(Issued together with the Government’s Resolution No. 19-2018/NQ-CP dated May 15, 2018)

1Sourced from “Global Tourism Competitiveness Report” released by the World Economic Forum in April 2017.

2Sourced from “2016 Connection for Competition Report: Logistics roles in the global economy” released by the World Bank in June 2016 (biennial report).

3Including Russia, UK, France, Germany, Spain, Italia, Sweden, Denmark, Norway, Finland, South Korea, Japan, etc.

4Possibly including Canada, Australia, New Zealand, Switzerland and Netherlands, etc.