The business environment has changed significantly since adoption but implementation has fallen short of expectations in many respects.
On September 24 the Central Institute for Economic Management (CIEM) held a seminar to evaluate six months of the implementation of Resolution No. 19/2015/NQ-CP dated March 12, 2015 on improving the business environment and enhancing national competitiveness.
The business environment changed significantly but there remain many shortcomings in the implementation of the Resolution. For example, the legal framework is still not unified and reforms failed to create confidence among the business community.
According to Ms. Nguyen Minh Thao, Deputy Director of the Business Environment and Competitiveness Department at CIEM, as at September 23 about 98 per cent of enterprises had online tax declaration systems. The General Department of Taxation has cooperated with 33 banks to develop electronic tax payment services. Eighty-four companies have registered for online payments and about 71.3 per cent have paid taxes online. However, processing times have not fallen to the degree calculated by the Ministry of Finance. Enterprises noted a reduction of 20 per cent, or 110 hours, in the time for declaring and paying taxes.
Ms. Thao added that enterprises have little faith in the policy changes so despite procedures being cut many still decided to complete them. Local-level implementation has also been poor due to the slow application of IT called for in the new policy.
In administrative reforms to social insurance, the Resolution requires the time for payment be reduced from 335 hours to 49.5 hours a year. Vietnam Social Insurance has implemented several measures in recent years to reduce the payment time but is yet to reach the target of 49.5 hours.
Similarly, reforms to customs procedures and the adoption of professional management in exports and imports have not improved despite the efforts of the Ministry of Finance and the General Department of Vietnam Customs to simplify procedures and facilitate online customs payments.