To:  THE GOVERNMENT’S PRIME MINISTER NGUYEN XUAN PHUC

The Chamber of Commerce and Industry of Vietnam (VCCI) is pleased to report on a performance of tasks assigned in the Resolution 35 / NQ-CP dated 16 May 2016 by the Government on supporting and developing businesses until 2020, solving difficulties, obstacles and recommendations of enterprises in May  2018 as follows:

I. SUMMARY OF BUSINESSES’ RECOMMENDATONS UNDER THERESOLUTION No. 35 / NQ-CP OF MINISTRIES AND BRANCHES IN MAY 2018

1. Responses to recommendations that aggregated by the Government’s Office

In May, 2018, the VCCI received 27 documents responding to recommendations of businesses by ministries, branches and localities. These documents were disclosed on the website of VCCI as stipulated in the Resolution 35. The written documents responding to recommendations of businesses that the VCCI received in May 2018 have contents related to the specially fields as follows:

1.1. The Ministry of Finance:

The Ministry of Finance shall issue 3 official letters responding to recommendations of businesses or the contents: Guiding on the handling of difference in revenues and expenditures from service activities upon the settlement of the official time transferring to joint-stock companies; Law’s provisions on positions of heads of accounting sections; directing the Dak Lak Tax Department to resolve the problems of Hiep Phuc Company.

1.2. The Ministry of Planning and Investment

The Ministry of Planning and Investment had 11 responded written documents to the recommendations of businesses with majority content explaining provisions of the Law  on Bidding (8/11 documents) such as regulations for individuals participating in the bidding activity; does the regulation on the ratio of state capital in the project determine whether it it under the regulation of the bidding agency? Provisions of the Law on Bidding on professional project management boards; provisions on the list of goods in bidding dossiers for goods procurement through online system... Other contents responding to enterprises were: the provisions of the Law on Investment on the progress of project implementation; the increase of capital by way of a subsidiary loan to the holding company; guided the necessary procedures to supplement the planning on Group-A investment projects using non-budgetary capital according to the Law on  Planning.

1.3. The transportation

The Ministry of Transport had two documents to resolve recommendations of the Hanoi Taxi Association and Ho Chi Minh City Tax Association recommended adjustiment of some regulations in the business of passenger transportation by taxi, in which:

- Recommended the Ministry of Science and Technology, the Ministry of Information and Communication and the Ministry of Health shall jointly deal with 3 recommendations related to the amendment of the circulars under the competence of the above ministries about the Taximet from 12 months to 24 months; facilitated the taxi businesses to register the license for use of frequencies for 12-36 months; adjusted the validity of the health certificate of drivers from 6 months to 12 months.

- Assigned units under the Ministry to propose amendments to legal documents under the competence of the Ministry of Communications and Transport on the contents of regulations on technical safety and environmental protection’s inspection of motorized traffic means; break time between two consecutive driving in the taxi transport business; the working time of drivers.

1.4. Ministry of Construction

The Ministry of Construction issued 3 written documents responding to the enterprises' recommendations on the contents of the land allocation used for determining expenses for the works of piling and pressing in the norms for estimation of construction of public works; the use of reserve expenses for additional items in cases where projects have been accepted; the law on management of investment projects in specialized and regional construction.

1.5. Ministry of Industry and Trade

The Ministry of Industry and Trade had 3 written documents responding to recommendations of businesses on the contents of: the right to entrust the purchase and sale of goods and the transfer of goods from the FDI businesses; the proof of originating materials of Vietnam; recommendations on the construction of gas stations affect the business activities of enterprises.

1.6. Some other ministries, branches and localities:

- The Employment Bureau and the Ministry of Labor, War Invalids and Social Affairs issued written documents to the recommendations of businesses on the documents and time limits for approval of the positions of employment of foreign laborers according to the provisions of the Circular No. 40 / 2016 / TT- BLDTBXH dated October 25, 2016.

- The Ministry of Science and Technology hereby issued a written document responding to the recommendations of the Vietnam-Germany Investment Technology Joint Stock Company to cancel the validity of the trademark registration certificate No. 248484 to protect the trademark "ROMMELSBACHER"that granted to Ms. Nguyen Thi Khuyen.

- The Ministry of Health issued a written document responding to recommendations of businesses on the time limit and contents of health examinations for those directly engaged in the production of industrial rations catering to companies and businesses.

- The People's Committee of Quang Nam Province had a written document responding  to the recommendations of the Long Trang Company for the content of payment on the volume of pre-acceptance test of the Tra Linh Commune’s road project, Nam Giang District, Quang Nam Province.

- The People's Committee of Hai Phong City responded to the recommendations of businesses to support the project of chopped firewood production through the Innovative Innovation Program.

1.7. Responded recommendations that  VCCI aggregated and sent to the Government’s Office:

In May 2018, VCCI received 06 responded written documents to 06 recommendations of businesses. The responded written documents that VCCI received were posted on the VCCI‘s website and conveyed to the recommended businesses.

- An Official Letter No. 1458 / LS-PL dated May 4, 2018 of the Consular Department of the Ministry of Foreign Affairs on answering recommendations of the Tourism Advisory Council on a number of policies that related to visas for international tourists  coming to Vietnam. These recommendations were approved by the Government and stipulated in the Resolution 19-2018 / NQ-CP dated May 15, 2018 on continuously implement the major tasks and solutions to improve the business environment. Has increased national competitiveness in 2018 and the following years. (the Recommendation No 4, Report 2/1918 No. 0477 / PTM-VP dated March 19, 2008 of  the VCCI).

- An Official Letter No. 2448 / TCHQ-PC dated May 7, 2018 of the General Department of Customs, Ministry of Finance responded to the following recommendations:

+ Responded to the recommendations of the  Viet Duc welding Electrode Company on self-refund of steel paid in 2016. The General Department of Customs confirmed that the company's goods were not eligible to receive exemptions for application of safeguard measures. Therefore, the customs office had no basis to refund the tax for self-safeguard.. (the Recommendation No 6, Appendix 1, March 2018, the Report No. 0707 / PTM-VP dated April 12, 2018 of the VCCI).

+ Responded the recommendations of the CYTIN INTERNATIONAL CO., LTD and the recommendations of Mrs. Le Hoang Diep Thao that sent by the Government’s Office to the Ministry of Finance in February, 2018 included in the Appendix 2, March, 0707 / PTM-VP dated April 12, 2018 of the VCCI.

- An Official Letter No. 4096 / BCT-PVTM dated May 24, 2018 of the Ministry of Industry and Trade responded to recommendations of the Viet Duc Welding Electrode Joint Stock Company to refund self-paid steel in 2016. The Ministry of Industry and Trade affirmed the The General Department of Customs did not refund to the tax for self-safeguard to the Viet Duc Company, but the Ministry of Industry and Trade still recommended that due to the new practice applied in Vietnam, the collection and payment’s procedures of tax refunds have not  known to many businesses. In addition, some legal issues have arisen in the course of implementation as many regulations did not fit the reality. As a result, the Ministry of Industry and Trade requested the Ministry of Finance to reconsider the application for tax refund of the Viet Duc Company and if possible, to resolve the problem for the company. (the recommendation No 6, Appendix 1, March 2018 of the Report No. 0707 / PTM-VP dated April 12, 2018 of the VCCI).

- An Official Letter No. 2307 / BTNMT-PC dated May 9. 2018 of the Ministry of Natural Resources and Environment responded to the recommendations of the Association of small and medium enterprises in Nghe An Province on the abolition of some taxes and fees in the natural resources and environment fields (the Recommendation No.4, Appendix 1, January 1, 2015 of the Report No. 0228 / PTM-VP dated 9 February, 2008 of the VCCI).

- An Official Letter No. 4987 / BGTVT-TC dated May 14, 2018 of the Ministry of Transport responded to the recommendation of the Deo Ca Investment Joint Stock Company for some contents of the draft amendments and supplements of a number of articles of the Circular 35/2016 / TT-BGTVT dated November 15, 2016. (the Recommendation No.3, Annex 1, February 20, Report No. 0477 / PTM-VP dated March 19, 2008 of the VCCI).

- An Official Letter No. 3693 / BNN-QLDN dated May 17, 2018 of the Ministry of Agriculture and Rural Development (MARD) responded to the recommendation of the Small and Medium Business Support Center upon the comments on the draft of the regulation on management and use national brand name gaoj Vietnam. The Ministry of Agriculture and Rural Development received comments on the official regulations and issued on 2 May 2018. (the Recommendation 8, Appendix 1, March 2018, the Report No. 0707 / PTM-VP dated April 12, 2018 of the VCCI).

+ An Official Letter from Ministry of Agriculture and Rural Development (MARD) was also sent to the Intergration Point Malaysia and Galan Co.LTD by the the Government’s Office  in February and March.

2. Recommendations that the Government’s Office informed to the VCCI

- In May, 2018, the VCCI received 36 recommendations by the Government’s Office through the receiving and responding system to the recommendations of businesses on the Government’s Portal by the end of May 31, 2018, there were 27 recommendations submitted by ministries, sectors and localities. There were 9 recommendations that were not responded (see attached list in the  Annex 2). All recommendation were overdue for responses.

- In May 2018, VCCI received 62 recommendations from businesses by the Government’s Office through the receiving and responding system to recommendations of businesses on the Government's Portal. By the end of May 31, 2018, there were 18 recommendations submitted by ministries, sectors and localities. There were only 44 recommendations that were not responded. (list attached as Annex 3), some of recommendations were overdue for responses..

II. THE IMPLEMENTATION OF THE RESOLUTION No. 35 / NQ-CP OF THEVCCI.

In May 2018, VCCI carried out the following tasks:

1. Implemented activities contributing to administrative reform, createdfavorable conditions for businesses; created a favorable environment to support start-up businesses, innovative businesses; ensured business rights, equal access to resources and business opportunities of businesses;reduced business costs for businesses and protect the legitimate rights and interests of businesses:

- During the month, VCCI completed comments and continued commenting on 17 drafts of  legal documents such as the Decree detailing and guiding the implementation of some articles of the Law on Technology Transfer (in 2017) and the Law on Technology Transfer (in 2017), the revised Law on Competition, the Decree on the Cooperative Development Assistance Fund, the Decree on the regulation of the management of the inland waterway activities, the Circular on determining the reserve price for auction to lease and transfer the property for a period of time to exploit the traffic and irrigation infrastructure assets, the Circular providing for the lending activities of credit institutions and foreign bank branches to customers for investment in foreign countries, ... In addition, commented on 05 draft reports and proposals including: The report on solutions to attract investments to start a business. The report on the support to the Ministry of Industry and Trade on the issuance of the Circular on energy consumption norms for seafood processing businesses, the conference scheme and the main reports of the Government’s Prime Minister conference on the mechanism of the plan for simplifying the regime of periodical reporting falls under the scope of management functions of the Ministry of Justice and the plan for reform of specialized inspection’s activities. and business conditions under the management of the Ministry of Labor, War Invalids and Social Affairs.  

- Presided and co-ordinated with the Ministry of Industry and Trade to organize a workshop on "Comprehensive Partnership Agreement and Transpacific Progression (CPTPP): Basic Commitments - Notes for Enterprises" on May 22nd. 2018 in Hanoi, attracted more than 200 participants to attend. The workshop provided insights and comments on the advantages and disadvantages faced by Vietnamese businesses in international integration. Specifically, the main difference in content between CPTPP and TPP lies in commitments to delay implementation of investment, intellectual property, financial services, telecommunications, government procurement, cross-border services, the environment ... In particular, on investment and government procurement, the dispute settlement mechanism between foreign investors and the State receiving investment (ISDS) does not adjust the investment contract and investment approval. The CPTPP extended the deadline for the extened negotiations within 3 years to 5 years. For intellectual property, there are 11 obligations to be suspended for implementation including: copyright protection, confidentiality data protection, etc. On financial services, CPTPP does not apply ISDS for violations of obligations of minimum standards. The obligation that allow businesses to appeal the decisions of the regulator in the field of communication is also postponed ... The postponement of the implementation of a number of complex obligations within the TPP will help Vietnam and other countries have more time to adjust and adapt in time. Participating in the CPTPP, the biggest challenge of the business is how to both comply with the agreement and take advantage of opportunities provided by CPTPP, avoiding miss 70-80% of tariff preferences from the current FTAs. . As the representative of the Vietnamese business community, during the TPP negotiation process for more than five years and then a year of CPTPP’s negotiations, VCCI is an active and effective focal point in the exchange of information, gathering comments of businesses, developing  recommendations with Party, State.  The delegation negotiate appropriate negotiation methods.

- Organized a Forum on "Enterprises in the Digital Economy" and the Announcement of the Vietnam Business Report 2017/2018. The forum attracted more than 200 delegates from agencies, ministries, sectors, enterprises, experts at home and abroad. Economic experts at the forum said that in order to businesses develop in the digital economy, besides the necessary conditions, it was necessary to establish the foundation for the digital economy through the building and development. Broadband infrastructure, platform databases, interconnected service platforms, electronic payment platforms, or authentication ..., awareness and availability of businesses are enough conditions to survive and grow in the information technology age. According to the Vietnam Business Annual Report this year, the quality of business in 2017 improved, but not significantly. The development’s gap between domestic private enterprises and foreign-invested enterprises and SOEs has been narrowed. The real business environment made adjustments that have contributed to bringing the private sector closer to other business sectors. The report also provides an assessment of the development of enterprises in the areas of digital economy applications such as information technology and communication services, e-commerce ... digital economy with the new business model also poses challenges for Vietnamese businesses in terms of market, security, e-commerce and the legal environment suitable for the new economy. Especially, the shortage of information technology manpower is one of the big challenges for Vietnam's digital economy.

- Organized the 2018 Real Estate Forum with the theme "Real Estate Market - Impact from Policy". The forum focused on policy issues, including three major issues: consistency in the whole legal system relating to property that be having problems, ways to develop laws are still be unreasonable, There have not got any studies on real estate finance in our country today. The forum evaluated the period of 2018-2020, the real estate market will continue to make significant adjustments to address the current supply-demand deviation, helping the market return to a healthier and more sustainable development.  However, there are still many constraints in developing the real estate market, especially the real estate’s finance. Housing saving fund has not been developed mainly due to lack of capital, mechanisms, methods that are not suitable to the market. In addition, the system of financial institutions has not diversified with or without developing financial institutions such as investment trust, housing mortgage ... These are the barriers that make the market housing finance can not grow. In addition, the lack of transparency, difficulty in approaching the land fund for development and the process of auctioning real estate with foreign investors as well as the policy process is cumbersome, making the process of approaching and starting the project of real estate investors, especially for outside investors are obstructed. Some solutions proposed at the Forum include the need to build a common housing saving fund (such as Thailand and Singapore), develop a capital market that provides medium to long term capital and structural balance of financial market, social housing program, enhancing the role of industry association, focusing on attracting FDI into target real estate such as essential infrastructure, transport infrastructure, implementing the decree on the form of PPP investment.

 - Continued coordinating with localities to organize PCI - post activities:

Organized the PCI Diagnostics Workshop in Bac Lieu and Tay Ninh Provinces, workshop on "Analysis of the Provincial Competitiveness Index by the Mekong River and lessons learned in management and reform. "

- Continued implementing the Business Integrity Action Program: Organized 03 training courses on "ISO 37001: Anti-bribery Management Guidelines" in Da Nang, Hanoi and Ho Chi Minh City. ISO 37001 is a voluntary international standard that can be applied to any large or small organizations and businesses in the public or private sector in any country. About ISO 37001: 2016, if it is incorporated into the governance system to help reduce dangers and risks associated with bribery, corruption and step by step establish a compliance business culture.

- Conducted other activities such as organizing a workshop on "cutting, simplifying business conditions and activities in the field of education and training"; coordinated with the Customs Department of Hai Phong City to hold a conference on "solutions for enhancing the customs-business partnership".

2. Carrying out trade and investment promotion’s activities as well as programs and projects to support raising the competitiveness of enterprises and business associations:

On trade promotion and investment:

- Coordinated with the Embassy of India in Vietnam to organize a seminar on investment promotion of Assam State of India in Hanoi, attracted more than 100 enterprises and investors of the two countries to attend. At the seminar, the Governor of Assam State of India introduced many areas inviting Vietnamese’s businesses to invest in business with preferential treatment in agriculture, industry, tourism, trade and energy, etc. Assam is a major state in northeastern India, which in recent years has played a central role in economic cooperation between India and ASEAN countries.

- Coordinated with the Seoul Chamber of Commerce and Industry, Korea to organize a meeting with Vietnamese-Korean businesses in Hanoi. Attending the conference were over 60 businesses of two countries in the fields of veterinary medicine, cosmetics for skin and hair care, fashion, production of iron and steel, architecture and furniture, real estate, machinery. In addition to traditional sectors such as high-tech agriculture, and fishery Korean SMEs have brought into Vietnam new business fields such as cosmetics and cosmetic equipment ... promise to open up potential cooperations, increase trade between the two countries. Currently, South Korea is focusing on "new South" strategy, in which Vietnam is one of the focus on this policy.

- Organized a business meeting (B2B) for Vietnamese businesses - Korea at Entech Vietnam 2018 with the participation of 120 businesses in the field of environmental industry. With the theme of "Green Technology and Products - Action for the Future", Korean businesses attended the show with booths displaying wastewater reuse systems, remote wastewater control systems , automatic water quality measurement equipment, clean water supply system for residential areas; parts for wastewater treatment; advanced oil extraction system; high performance LED technology for consumer and public lighting.

- Coordinated with the Belarus Chamber of Commerce and Industry and the Belarusian Embassy in Vietnam held a Business Conference with the Belarusian Market in Hanoi with the participation of more than 100 participants including businesses and investors of 2 countries. On this occasion, the Vietnam-Belarus Business Council was officially launched. The Council aimed to further enhance the cooperation between the business community of Vietnam and Belarus in many fields: trade, investment, science, technology, tourism ... The Council will be a good channel for dialogue between enterprises and government agencies of the two countries, discussing and recommending solutions to problems in trade and investment between the two sides.

- Organized a Vietnam - Middle East Trade Exchange Forum 2018 in Ho Chi Minh City. Attending the Forum were an Ambassador of United Arab Emirates (UAE) in Vietnam, an Ambassador of Vietnam in the UAE, leaders of relevant ministries and businesses of the two countries. Two-way trade relation between Vietnam and the UAE was considered to be develop well. The UAE is one of Vietnam's potential export markets and vice versa. Up to now, Vietnam’s products have created a foothold in the UAE market including telephone, fishery, textile, footwear, agricultural, foodstuffs and household products. The project "Developing relations between Vietnam and Middle East countries - Africa in 2016-2025" has been approved by the Government’s Prime Minister.

- Coordinated with the Trade Promotion Council of Shandong Province, China to hold a Vietnam - China Trade Exchange Seminar. The workshop was held in Ho Chi Minh City with the participation of more than 80 delegates, including 20 leading businesses in Shandong Province, dealing in the fields of automobiles and parts, equipment, high technology, electricity, chemicals, electronics, garment ... The workshop provided the latest information on the Chinese market in general and the commercial potential of Shandong Province in particular. This time opens new business cooperation opportunities for the business community of the two sides.

- Continuously carried out, extended businesses to attend the new software, granted 2.180 C / O sets, instructed 1.158 business attending C / O software,  received comments and handling the bug of businesses related to a reduction of vouchers in application dossiers for the C / O of businesses.

Regarding the training and development of businesses:

- Organized a launch of the "Program for evaluating and announcing sustainable businesses in Vietnam in 2018". This is the third consecutive year that the VCCI has implemented the program. The CSI Sustainable Business Index (CSI) continues to be used as a measure of the sustainable development of enterprises participating in the program, with 132 criteria divided into three main categories, social and environment. This is a useful enterprise management tool that helps businesses zoning existing management and operational gaps to reduce risks, identify the strengths of the business, and capture opportunities. business potential from there. The new points of "Sustainable Business Assessment and announcement program in Vietnam 2018". The Program was co-ordinated by the VCCI’s experts team to establish sustainable development standards. Therefore, in addition to honoring 100 businesses that perform best sustainable development, businesses that achieve the above standards will be recognized as "sustainable businesses".

- Organized a commencement ceremony of the dual vocational training program in Germany by the Business Management Training School (CBAM) – the VCCI in cooperation with the German SBH Education Group. The Dual Vocational Training Program in Germany was an opportunity for Vietnamese young people aged 18-27 to access quality German education. Besides being equipped with intensive German and specialized knowledge, trainees were practiced and receive wages. In addition, trainees are entitled to other benefits during the training period of hospitality industry in Germany, including basic salary, health insurance, health insurance, unemployment insurance and retirement insurance during apprenticeship. After graduation, students are guaranteed employment in international restaurants, hotels and luxury resorts in Germany.

- Collaborated with Vietnam Electronic Industries Association and Bac Ninh Industrial Zones Authority toorganize a seminar on "Developing electronic support industry by enhancing quality of employment". This is one of series of activities between Bac Ninh Industrial Zones Authority and VCCI. 30 enterprises in the field of electronic in industrial parks of Bac Ninh Province attended the event. The seminar provided an overview of the current status of the development of the supporting industries in the electronic sector in Vietnam, discussed solutions and shared experiences of companies in issues related to human resources, employment quality of the sector.

- Organized a launch of Initiative “Zero Waste to nature”. The initiative called businesses and communities to develop a habit of sorting waste at sources, supported recycling for sustainable economic value, and contributed to environmental protection. The event was attended by more than 400 enterprises and organizations in Ho Chi Minh City. After the launching ceremony, garbage collection activities and garbage collection at sources were introduced to the community.

- Organized 26 training courses, 11 training courses for 2,061 enterprises on contents related to policies and law on tax, customs, labor and social insurance; improve knowledge of corporate governance ...

Supporting enterprises in international economic integration:

- Organized a workshop on "Impact assessment of CPTPP and new FTAs ​​of Vietnam, opportunities and challenges for An Giang enterprises" that attracted more than 200 enterprises and 250 units to attend. The workshop provided key information on the CPTPP, notes on signing trade contracts with partners, and made suggestions and recommendations to help An Giang improve the Provincial Competitiveness Index.

- Organized the conference "Fostering Knowledge of International Economic Integration in 2018" in Vung Tau with the participation of nearly 400 delegates. The conference consisted four thematic issues presented by the Ministry of Industry and Trade (MoIT) presented by reporters with the main contents: Information on the Comprehensive Partnership Agreement and Transpacific Progression (CPTPP); the 4th industrial revolution; guidelines and solutions of the government on the deployment of industrial revolution 4.0 in the integration period.

- Organized a business delegation to participate in the transfer ceremony of the ASEAN Women Entrepreneurs Network (AWEN) from Philippine to Thailand and received an award at the ASEAN Women Entrepreneurship Awards 2018. The company operates in the fields of manufacturing and trading agricultural products, food, mining, tourism, restaurants, hotels, investment in industrial parks and general trade. The ceremony of awarding the title of "ASEAN Women Entrepreneurs" in 2018 attracted more than 300 delegates, including female entrepreneurs (DNNs), SME associations from ASEAN countries. Vietnamese delegation this year got 10 typical DNN  that be nominated by the Business Entrepreneurs Council to be named "ASEAN Outstanding Women Entrepreneurs 2018".

- Organized a Forum "Women Entrepreneurs in the 21st Century: Creativity and Humanity". The forum attracted more than 300 delegates, including DNNs, business associations throughout the country with the theme "Green production - Sustainable development model of female entrepreneurs", the forum has contributed to orienting and building a contingent of Vietnamese businesswomen who can integrate into the digital era. In addition to creating and innovating in business through the application of new science and technology, bringing into full play the leading position in the realization of social responsibility, aiming to serve the interests and safety of consumers. On this occasion, the Vietnam Women Entrepreneurs Council announced 10 DNNs to be named " ASEAN Outstanding Women Entrepreneurs in 2018" and presented gifts to the Vietnam Children Support Fund.

3. Summing up the difficulties and obstacles of enterprises:

In May 2018, VCCI continued coordinating with ministries, localities and business associations to bring together new business recommendations. The list of new recommendations is presented in Appendix 1.

The Chamber of Commerce and Industry of Vietnam would like to report to the Government’s Prime Minister.