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Through Resolution 105/NQ-CPthe Government aims to drastically reform almost all cumbersome administrative procedures, tackle ongoing difficulties, and resolve legal problems and issues faced by businesses, the general public, and in developing investment projects. The aim is also to reduce costs, increase market access, and provide capital resources for businesses. This important Resolution shows the Government's determination to perfect the functioning of a robust and free market, minimize any interference, and simplify the legal system with sub-laws and specific regulations to avoid overlaps and conflicts in the enforcement of laws and regulations.

In the process of reforming institutions, bringing in new policies, and improving infrastructure and services to support businesses and start-ups, there have not really been any changes over the years. Ministries and sectors have all advocated promoting digital government transformation and digital economy, but in many cases, most of them stop short of general and vague policies. This Resolution is quite detailed in that it specifically assigns each agency with a line for implementation, requiring a specific feedback report, and also accountability on implementation and reporting time. The Resolution clearly states that ministries and branches at the central level must remain the focal point to handle problems related to business activities and investments.

The Ministry of Industry and Trade has been assigned to handle problems in the investment environment for renewable energy development and will soon grant electricity operation permits for eligible renewable energy power projects to soon put these projects into operation. The Ministry of Planning and Investment August 2023 will coordinate with ministries, agencies, and localities to review regulations on business conditions, conduct specialized inspections, and propose specific plans to amend, replace, abolish, and report the results to the Prime Minister by December 2023.

Under the purview of the Ministry of Finance, the Government expects that within July 2023 a report is submitted to the Prime Minister for promulgating a decision to reduce 30 percent of land rent in 2023 for organizations, units, businesses, households, and individuals who are directly leasing land from the State. There will be continued research and proposal of policies and solutions to support fiscal policy. There will be an urgent review of legal regulations to amend and guide in case of necessity, create favorable conditions, compact procedures for businesses, and ensure the fastest time for VAT refund for businesses.

The Government has proposed that the Vietnam General Confederation of Labor reduce the trade fee from 2 percent to 1 percent and extend the deadline for payment in 2023.

The Ministry of Home Affairs will assume the prime responsibility and coordinate with other ministries, agencies, and localities in expeditiously finalizing and submitting to competent authorities for consideration the regulations on encouraging and protecting dynamic, creative, and innovative solutions while also taking responsibility for their tasks. Officials, civil servants, and public employees who are unable to perform effectively will be dealt with strictly or replaced.

Owning responsibility

In order for Resolution 105/NQ-CP to be really effective, with strong implementation, increasing competitiveness will be promoted. This will require controlling the issuance of business conditions that cause difficulties and problems and increase the cost of complying with the policies and laws of enterprises. This includes normal inspection work, and overlapping and multi-level inspection, which takes time and increases costs for enterprises and production, and also for business households. At the same time, there needs to be a limit  on excessive inspection to avoid harassment and petty corruption, which reduces input costs in production and business activities of enterprises.

In particular, the Resolution 105/NQ-CP mentions the replacement or transfer to another job for cadres and civil servants with weak capabilities and who do not dare to act decisively and effectively. The fact is that many problems of people and businesses are caused by overlapping conflicts of the legal system, and there are many cases of indifference and apathetic agencies refusing to take action to resolve ongoing issues. Specifically, there are issues related to fire prevention and firefighting, environmental regulations in production and business activities, and licensing issues for new business areas such as renewable energy, and Fintech.

The Government requires ministries, agencies, and localities to actively perform their assigned tasks and use powers, and be responsible for decisions on issues in accordance with the law. There is now the need to strictly implement Official Letter No. 280/CD-TTg dated 19 April 2023 of the Prime Minister to not prolong work or miss opportunities for businesses and the general public and also not cause any waste of power.

The Resolution 105/NQ-CP has also emphasized that this is the time to completely break through all fear of being wrong, and not daring to decide according to assigned responsibilities and tasks. We need to break down all entrenched barriers that have not really facilitated trade and investment. The right to freedom of business and the right to fair access to market resources such as land, energy, and services must be guaranteed.

In order for the Resolution 105/NQ-CP to come into effect, it is necessary to have enforcement mechanisms to monitor all future implementation. This will ensure the maximum promotion of the expected results being introduced by Resolution 105/NQ-CP and overcome the aftermath of the Covid-19 pandemic and rebuild a robust production and economic base for years to come.