To: THE GOVERNMENT’S PRIME MINISTER NGUYEN XUAN PHUC

The Chamber of Commerce and Industry of Vietnam (VCCI) is pleased to report on the implementation of the tasks assigned in the Resolution 35 / NQ-CP dated 16 May 2016 by the Government on supporting and developing enterprises to 2020 forOctober 2018, particularly is as follows:

I. IMPLEMENTATION OF BUSINESSES’ RECOMMENDATIONS UNDER THERESOLUTION No. 35 / NQ-CP OF MINISTRIES AND BRANCHES

1. Recommendations assemblage of businesses in October 2018

In October 2018, VCCI recorded 71 new recommendations submitted by businesses and business associations to 16 ministries, sectors and localities (85 decreasing recommendations compared to September 2018), in which 21 recommendations were responded and 50 recommendations were not responded.

In the number of 50 unrespondedrecommendations, there were 42 recommendationsthat were still pending, 8 recommendations wereoverdue.

Details of the data and contents of the new recommendations were presented in the statistic statement of recommendations in October 2018 and Appendix 1 attached to the report. The time limit for resolving these recommendations were calculated by the Government’s Office in the official dispatch sent to the ministries, branches and localities.

Main contents of the recommendations of businesses and business associations included the following issues:

- The Ministry of Finance continued receiving the most recommendations from the Ministry. The contents of the proposals focused on the following issues: Tax policy andtax calculation (royalty tax, VAT, import tax) are not reasonable; examining the state budget settlement; The calculation of expenses for procurement of machinery, equipment, general construction items, transfer of projects ... when finalizing taxes; responding the regulations of the law on management of capital and state property; some obstacles when carrying out customs procedures and investment procedures ...

- The Ministry of Planning and Investment has 18 recommendations, including 7 recommendations guiding the law on bidding. In addition, there are some contents such as: preferential policies for businesses investing in industrial park infrastructure; the recognition of businesses in export processing zones; guiding the provisions of the Law on Investment, the Law on Public Investment, the Law on Enterprises ...

- Businesses proposed some difficulties in production and business activities such as:

The Korea Trade and Investment Promotion Agency in central South East Asia and Oceania had proposed to the Government that it was necessary to set up a legal basis for businesses to trade petroleum on the market. automatically. This wwould help businesses to open petroleum trading locations in mountainous and rural areas ... with low demand because it can reduce the cost of construction and maximum operation.

Although the General Department of Customs responded, importers of automobiles and construction machines continuedto recommend that the Ministry of Finance and the Ministry of Transportation issued new HS code for "Crane tire " was not reasonable. The introduction of new HS code made businesses faced to tax arrears from 2013 up to now and pushed businesses to a difficult situation, even bankrupt.

+ The field of labor continued to have many recommendations to guide the law to implement such as: settlement of payment that be coincident with insurance regime, time determination of pregnant female workers to enjoy the regime, solved occupational accidents regime related to sport and signinglabor contracts with the elderly people.

+ The People's Committees of Ho Chi Minh, Hanoi and Da Nang Citiesas well as Quang Ninh Province received allrecommendations related to production or business premises or real estate projects. Especially, the recommendation of DANA-Italy Steel Company is related to the change of Danang People's Committee's policies regarding Thanh Vinh industrial complex but there is no solution for businesses, causing serious damage for investors, businesses and employees.

2. Responding to recommendations of ministries, branches and localities:

In October 2018, VCCI received 57 documents to respond to business recommendations of 15 ministries, branches and localities (September 2011 received 42 documents). These documents were fully disclosed on VCCI's website as stipulated in the Resolution 35. (Please see Appendix 3 attached to the report)

According to the VCCI, from January 2018 to October 31, 2018, there were 116 recommendations from businesses and business associations that were not submitted by ministries, sectors and localities, including 97 recommendations that receivedby the Government’s Office and 19 recommendations received by the VCCI that be transferred to ministries, sectors and localities. Many recommendationshad forwarded by the Government’sOffice and the VCCI since early 2018 but they were still remain unresolved. Particularly, recommendationshad been submitted by the businesses repeatedly but they were not responded, such as the recommendations of the Tran Co., Ltd to the Ministry of Science and Technology on the issuance of SHINTO trademark by the Government’s Office transferred from October 23, 2017 and until September 2015, the Tran Co., Ltdcontinued to send recommendations. However, Ministry of Science and Technologyhas yet not answered. Thus, more than one year after submitting therecommendation,  Tran Co., Ltdhas still not received feedback from the Ministry of Science and Technology; the Recommendation of DANA - Italy Steel Company on the change of Danang People’s Committee policy related to Thanh Vinh industrial complex, but there were no plans to solve business damage to businesses. The proposal had been made by the DANA - Italy, the Vietnam Steel Association, theVCCI and the the Government’s Office to transfer Danang People 's Committee from January 1, 2018 and many times after that, but after 10 months,it was notanswered by Da Nang People' s Committee.

The recommendations were not answered and the responsibilities of the ministries, branches and localities were presented in the Appendix 4 attached to the report.

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

In October 2018,the VCCI carried out the following tasks:

1. Implemented activities contributing to administrative reform, creatingfavorable conditions for businesses; creating a favorable environment for supporting start-up and innovative businesses; ensuringbusiness rights, equal access to resources and business opportunities ofbusinesses; reducing business costs for businesses and protecting the legitimate rights and interests of businesses:

- VCCI participated incontributing ideas to a number of documents, drafts and coordinated organizing a number of policy consultations such as: Drafting Committee Meeting on the Lawon Competition; participated in the evaluation of the draft revision of the Government's Decree No. 185 on the sanctioning of administrative violations in commercial activities, the production and trading of fake goods and the protection of consumers' interests; commented on the draft of the Decision of the Government’s Prime Minister that approved the Scheme on "Promoting the import of technologies in priority industries and fields in the period up to 2025 with orientation to 2030" and the report to the Foreign RelationsCommittee on CPTPP’s approval; participated in the inter-branch delegation led by the Vietnam Fatherland Front Central to work with the provinces of Quang Tri and Kien Giang on issues related to tax and customs; cooperated with the Institute of Strategy and Science Inspectorate to organize a seminar on reform of inspection and examination activities to protect the rights and interests of businesses in Hai Phong City; participated in the inter-branch delegation to inspect the implementation of the law on investment and business conditions at the Ministry of Health; organized seminars on solutions for policy of sustainable development of the paper industry in Vietnam…

In addition, the VCCI completed comments on 08 draft legal documents: the ATA decree; the Decree amended the Decree 203/2013 / ND-CP that regulating on the grant of mining rights; The Decree on conditions for carrying out radiation work and support services for atomic energy application; the Decree on sanctioning administrative regulations in the field of sport; the Decree on remote sensing activities; the Decree amending the Decree 13/2011 / ND-CP on the safety of petroleum projects on the mainland; the Circular on the operation network of the microfinance institution; the Circular No. 11/2014 / TT-BVHTTDL, the Circular No. 04/2016 / TT-BVHTTDL, the Circular 06/2015 / TT-BVHTTDL, the Circular No. 15/2012 / TT -BVHTTDL to reduce the administrative procedures under the jurisdiction of the Ministry of Culture - Sports and Tourism…

- Coordinated with the Central Steering Committee for Enterprise Renovation and the Ministry of Planning and Investment to hold a press conference announcing the report on the National and 2017Local Enterprise Development Target Report with attendance of the  Deputy Prime Minister Vuong Dinh Hue, the Minister of Planning and Investment and the President of VCCI. Indicators are a way to quantify the level of development of the Vietnamese business community across the country and across regions and provinces based on the following factors: (1) the number of enterprises actually operating,the (2) labor of the business sectors; (3) the capital for production and business; (4) the turnover; (5) the profits and contributions to the state budget; (6) the income of employees. The report on the Business Development Index is an important report and is considered the official report of the Government on the development of Vietnamese businesses. This was the original report to guide the data and real situation of Vietnamese businesses in 2017 and the period from 2010 to 2017. The report mentioned many issues such as the number of businessesdivided by branches and localities, the effectiveness of the business ... The report would be developed and published annually.

- Continued the implementation of the Action Program to Promote Integrity in Business: Signed the agreement between UNDP and the Office for Sustainable Development (SdforB) to sponsor for the Project 12 for the implementation of integrity initiatives between business and government (September 2015 - March 2016); identified and invited domestic consulting firms to make technical and financial proposals for research and development of training materials for the project; updated information website www.kdlc.vn.

- Implemented the Provincial Competitiveness Index (PCI) survey in 2018 and post-release activities of PCI 2017 Report:

+ Continued to conduct activities to promote good practice sharing in provincial economic governance: Attended and gave presentations on PCI and business environment at the Training Course for Coastal Resources Officers in Hai Phong, Hai Duong and Thanh Hoa Cities; Coordinated with Quang Tri Provincial People's Committee to organize a workshop to discuss measures to raise the competitiveness of Quang Tri Province in 2018; Attended and presented at the PCI / DDCI Training Conference in Ba Ria Vung Tau, Thanh Hoa and Bac Ninh Cities.

+ Shared experience in data processing, PCI analysis for Lao Chamber of Commerce and Industry.

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

On trade promotion and investment:

-VCCI Chairman Vu Tien Loc joined the Prime Minister Nguyen Xuan Phuc to attend the 12th Asia-Europe Summit (ASEM), attended the Summit of Green Growth Partners and Global Goals 2030 (P4G) and official visit to the Republic of Austria, Kingdom of Belgium, Kingdom of Denmark, working with European Union (EU) from October 14 to 21, 2018. Within the framework of the trip, the VCCI organized a business delegation accompanying the PM and coordinated with partners to organize some important trade promotion and investment activities in the European market. Specifically:

+ Vietnam Business Forum - Austria:The VCCI successfully organized the Vietnam-Austria Business Forum in Vienna, Austria with the participation of the Prime Minister Nguyen Xuan Phuc and nearly 400 businesses of the two countries.  This is the largest Vietnamese-Austrian business forum ever. At the forum, VCCI and WKO signed a Memorandum of Understanding (MoU) on support for businesses of the two countries to assist and promote the implementation of the Vietnam-EU Free Trade Agreement (EVFTA). The two sides also agreed to establish the Vietnam-Austria Joint Business Council. At the same time, WKO announced that it decided to open a regional representative office in Vietnam. The forum opened up more cooperation opportunities for the two countries' businesses in potential fields such as: hi-tech agriculture, agricultural product processing industry, investment in hi-tech parks, investment on infrastructure, tourism ...

In addition, the VCCI coordinated with WKO and Austrian Ministry of Foreign Affairs to organize a dialogue between the Prime Minister of Vietnam and 8 big Austrian corporations including Ame Int. Gmbh, Andritz Hydro GmbH, AVL List GmbH, Frequentis AG, Magna Europe, Mobility CE, and Vamed Engineering.

+ Vietnam Business Forum - EU and Belgium: VCCI jointly organized the Vietnam-EU Business Forum and Belgium in Brussels, Belgium. The forum attracted 250 Belgian, Vietnamese and other EU countries such as France, Ireland, Germany and the Netherlands. The Government’s Prime Minister Nguyen Xuan Phuc and President of the Belgian-Vietnamese Friendship Association Andries Gryffoy co-chaired the Forum. The forum provided businesses with the latest information on the investment business environment, preferential policies of the Vietnamese market, the European and Belgian region. At the forum, many cooperation documents between the two sides were signed in the field of logistics and information technology. At the same time, the VCCI and the Belgium-Vietnam Friendship Association signed a cooperation agreement on the development of projects and programs to support businesses to promote investment and business and commited to mobilize the process ofratification of the Standard EVFTA Agreement.

+ Roundtable of high-level enterprises in Vietnam - Denmark: the VCCI co-organized a seminar in Copenhagen, Denmark with the participation of three big corporations of Vietnam and 12 leading enterprises in Denmark whichwere planning to invest and expand cooperation in the Vietnam market. At the talks, businesses expressed interest in a number of issues such as the equitization progress of state-owned enterprises and the participation of Danish investors, the management of water supply and clean water supply at cities and opportunities for foreign investors ... On this occasion, the VCCI signed a cooperation agreement with the Confederation of Danish Industry on enhancing the effectiveness of cooperation between the business community of the two countries. At the same time, enterprises of the two countries also signed a number of memorandum of understanding and cooperation agreements in areas such as technology, marine, logistics ...

+ In order to motivate the parliamentaries, the VCCI’s business community and partners to accelerate the process of ratifying the EVFTA Agreement, the VCCI’spresidentactively had some meetings with some senior officials of the VCCI and the European Union such as the House of Commons and the Senate of Austria; the Austrian Minister for Economic Affairs, Energy and Industry, the speaker of the French-Speaking Region (Wallonia) and the Flemish Region, the speaker of the Netherlands (Flanders), the Chairman of the Committee on International Trade - European Parliament .

- Global Positioning Green Partnership 2030 (P4G): Based on the actual needs of the business and through the results of business cooperation with the Danish partners, as one of the members of P4G in Vietnam, the VCCI selected 30 leaders from companies which were activly in the field of clean energy, trade investment and high technology attended the forum held in the capital Copenhaghen, Denmark. Entrepreneurs attending the event had the opportunity to meet and interact with Danish and European partners, thereby enhancing their competitiveness, productivity and developing a sustainable development strategy for businesses.

- President of the VCCI joined the delegation to accompany the Government’s Prime Minister Nguyen Xuan Phuc to attend the 10th Mekong-Japan Summit in Tokyo, Japan from 9-10 October 2018. As assigned by the Government’s Prime Minister, the VCCI President attendeded the Mekong-Japan Investment Forum hosted by the Japan External Trade Organization (JETRO), exchanged and signed a cooperation agreement with the Federation of Trade Unions. Mr. Nippon Keidanren, Japan's economist on the co-ordination of the Asia Business Summit in 2019 in Vietnam. At the same time, the VCCI had a working session with the Japan Chamber of Commerce and Industry (JCCI), the SMRJ and the Kyusyu Federation of Chamber of Commerce to implement activities to support the two parties in the process of cooperation and business development in Vietnam and Japan, in the immediate future to implement two programs connecting enterprises in the automotive and medical equipment sector in January 2019.

- VCCI’s leaders accompanied the Government’s Deputy Prime Minister and the Foreign Minister Pham Binh Minh to visit the UK and Northern Ireland from 8-11 October 2018. In the framework of the trip, representatives of VCCI’s leaders attended and delivered a speech about the potential investment environment of Vietnam in the Vietnam-UK Economic Forum held in London and England. The Government’s Deputy Prime Minister, the Foreign Minister Pham Binh Minh and Secretary of State for the International Trade of Great Britain and Northern Ireland Martin Hatfull attended and co-chaired the Forum. At the event, the VCCI and the UK-ASEAN Trade Council (UKABC) signed a cooperation agreement on strengthening the implementation of activities to support the business community in the future. The VCCI and UKABC also had a working session to discuss concrete possibilities for cooperation and joint plan to organize business delegations surveying the two sides in 2019.

- VCCI organized and co-organized a number of conferences and seminars such as a conference with enterprises on labor Code in Ho Chi Minh City; a discussions on problems in enforcement of contract law and issues in dispute settlement outside the courts in Hanoi and Da Nang Cities; a Workshop on "Trademark in Enterprise Development Strategy" in Hanoi City; a Workshop on "Competitiveness of the economy: current situation, potential and challenges" in Ho Chi Minh City; a Forum on "Environmental protection for sustainable development of enterprises and communities" in Hanoi City; a Workshop on "The US-China trade war: prospects and risks for import-export enterprises" in Vung Tau City; a Women Entrepreneurs Forum: a key to success in the digital era in Hanoi; a conference on Enterprise Culture in the period of 4.0; a Seminar on Opportunities and Challenges for SMEs in the Context of Industrial Revolution 4.0 in Thanh Hoa ...

-The VCCI conducted a number of other investment promotion activities to assist Vietnamese businesses in understanding and accessing new markets and promoting cooperation and business in traditional markets such as: Exporting Vietnam 2018 with the theme "Origin of goods and customs procedures" in Hochiminh City; the workshop shared good practice on compliance and awareness-raising on the EVFTA agreement in relation to core of ILO conventions for businesses in the furniture, textile and footwear industries in Ho Chi Minh City. A Workshop on "Opportunities and Challenges of Enterprises - Solutions to promote internal resources in the digital era and Vietnam's participation in the CPTPP" in Vung Tau City; a Discussions on the Romanian market in Hanoi; a Workshop on "Promotion of Tourism, Trade and Investment of Vietnam - South Africa" ​​in Nha Trang City.

 - Organized businesses’s delegations to survey reality, learn experiences on developing effective credit access strategies and improve financial management capacity in Italy, Austria and Czech Republic (February - December 2018); Business opportunities in Australia & New Zealand market, Taiwan (October, 13-192018) ...

Regarding trainingand developmentofbusinesses, labor relationsdevelopment, and international economic integration enterprises:

- Organizing 60 training courses for 2,800 enterprises on topics related to corporate governance, import-export, taxation, customs and updating legal documents related to businesses in the above fields such as: digital marketing skills online; training on electronic invoices and techniques for adjusting the difference between tax and accounting; management skills and leadership for middle managers; communication skills and business negotiation; warehouse management; labor safety and risk control in the workplace ...

- On the occasion of Vietnam Business Day, the VCCI held a series of activities in Hanoi and other provinces in Vietnam:

+ Provided guidance, support and cooperation with business associations to organize activities in celebration of Vietnamese Business Day on October 13th in Hanoi and other provinces in the country.

+ Celebrated Vietnamese Entrepreneurs Day and honoring outstanding entrepreneurs in Northern Coast in 2018. Attending the Anniversary were leaders of provinces and cities; Representatives of departments and agencies in the Northern coastal area. The ceremony celebrated 30 prominent Northern Coasters in 2018, formerly known as the Vietnamese entrepreneur representing typical businessmen Bach Thai Buoi - "The King of Vietnam Ship".

+ Organizeda Ceremony of honoring "Entrepreneurs for Mekong Delta Communities"; "Mekong Delta Sustainable Business"; "Typical Businessmen in Mekong Delta 2018" and "Typical Business in Mekong Delta 2018". At the event, 131 businesses and entrepreneurs from 13 provinces in the Mekong Delta were honored, in which, there were  35 entrepreneurs were awarded the title of sustainable development, 28 entrepreneurs were awarded entrepreneurs for the community. 29 entrepreneurs were raised the title of typical entrepreneurs and 39 businesses were awarded the title of typical enterprises in the Mekong Delta region in 2018

- VCCI sponsored the "Asia Human Resource Development Awards 2018" (HRD) organized by SMR Malaysia and Anphabe. This prestigious international award launched in 2003 that awarded 250 individuals and organizations from 20 countries around the world, especially in Asia. The first HRD award was held in Vietnam. The award aimed to honor individuals and organizations who make meaningful contributions to domestic and international business, especially corporate social responsibility, social responsibility and community support.

- Issued a survey report of 500 businesses in the Red River Delta region to analyze and evaluate the current situation and propose measures to support Vietnamese businesses to increase access to credit through improved management capacity andtreasury and financial transparency.

- Conducteda  survey of 450 enterprises in the Southeastern Region to analyze and evaluate the current situation and propose measures to enhance market participation and promote fair competition to contribute to the development of the private economy that has become an important driving force of the socialist-oriented market economy.

- Continued reviewing the dossiers of businesses which participated in the Sustainable Business Classification 2018.

- Carried out activities to support the business community to implement the program ofthe circular economy: Implemented training activities, raised awareness with partners in Ho Chi Minh City with the initiative "no discharge in nature”, "working out a plan of action with the US Business Council for Sustainable Development (US BCSD), finalized the 2018 Circulars for Economic Research.

- Issued and improved publications to support businesses to integrate into the international economy: A Business Handbook with Vietnam (in English), A Handbook on CPTPP, a Handbook on FTAor agricultural products, the Trade liberalization in the third quarter of 2018.

The Chamber of Commerce and Industry of Vietnam are pleased to report to the Prime Minister.