REPORT ON

Implementation results of Resolution 35 of the Government in 2019

Resolution No. 35 / NQ-CP dated May 16, 2016 of the Government on supporting and developing businesses until 2020 (Resolution 35), Directive 26 / CT-TTg dated June 06, 2017 of the Government’s Prime Minister on continuing the effective implementation of Resolution 35 / NQ-CP dated May 16, 2016 in the spirit of the Government accompanying businesses (Directive 26) and Directive No. 07 / CT-TTg of the Government’s Prime Minister on continuing to promote the effective implementation of Resolution No. 35 / NQ-CP dated May 16, 2016 that supporting and developing businesses till 2020 and Directive No. 26 / CT-TTg dated June 6, 2017 of the Government’s Prime Minister on the continuing effective implementation of Resolution No. 35 / NQ-CP dated May 16, 2016 in the spirit of the Government accompanying businesses in 2018 (Directive 07) assigned the VCCI some task groups. The VCCI would like to report results of the implementation of above resolution and directives in 2019 as follows:

1. General difficulties, obstacles and recommendations of businesses:

1.1. Implementation of aggregating and resolving recommendations

From January 1, 2019 to November 30, 2019, the VCCI directly gathered from information channels 936 recommendations by businesses and business associations across the country received by the Government’s Office and the VCCI (raised up 235 recommendations compared to the same period in 2018). The authorities processed, solved and answered 710 recommendations (accounting for 75.9%), lower than 1.99% but an increase of 164 recommendations compared to the same period in 2018. The number of outstanding recommendations that were not answered by the ministries, branches and localities is 253 (accounting for 24.1%), an increase of 98 recommendations compared to the same period in 2018, in which,  many recommendations were unresolved from the beginning of the year. These recommendations are under the responsibility of 19 ministries, branches and 21 localities nationwide: The Ministries of Police; Transportation; Justice; Finance; Natural Resources and Environment; Agriculture and Rural Development; Science and technology; State Bank of Vietnam; The Ministries of Construction; Industry and Trade; Medical; Planing and Investment; Labor, War Invalids and Social Affairs; Education and Training; Information and Communication; Cultural; Sports and Tourism; Government Inspector; Vietnam Social Insurance; The Voice of Vietnam Radio and the People's Committees of Hanoi; Da Nang and Ho Chi Minh Cities; Can Tho; Hai Phong, Phu Tho; Kien Giang; Hai Duong; Quang Ngai; Lao Cai; Bac Giang; Binh Phuoc; Son La; Binh Duong; Quang Ninh; Ninh Thuan; Ca Mau; Thai Nguyen; Ha Tinh; Tien Giang; Thanh Hoa and Ba Ria Vung Tau Provinces As such, only the Ministry of Defense and the Ministry of Home Affairs have no pending recommendations.

Through VCCI's monitoring, the recommendations resolution of businesses and business associations of ministries, branches and localities as of the end of November 2019 has been more timely complete in comparison to previous years. The ministries and branches responded recommendations relatively timely and  thoroughly include: The Ministry of Planning and Investment, The Ministry of Finance, The Ministry of Transport, The Ministry of Construction, The Ministry of Agriculture and Rural Development, The Housing Bank of Vietnam, The Ministry of Justice, The Ministry of Foreign Affairs. However, the number of unanswered and unsatisfactory recommendations from the Ministry of Finance is still quite high. The main reason is that this Ministry has received quite a large number of recommendations, in which there are many complicated, prolonged cases and related to the inadequacies in legal documents that need to be considered and amended. Many recommendations had to be consulted by the Government or relevant ministries and branches for settlement. Prominent about the response to recommendations in 2019 is the Ministry of Planning and Investment. This is the Ministry that received many recommendations equivalent to the Ministry of Finance, but basically MPI responded / solved fully, the number of unresolved recommendation is still small. It must also be assessed that recommendations sent to MPI often request guidance on the implementation of legal provisions in areas under the Ministry's functions and tasks, so it is easier to answer definitively than the Ministry of Finance. Some ministries such as: Health; Labor, War Invalids and Social Affairs; Natural Resources and Environment; Police responded to many recommendations that were not timely. In the last 6 months of the year, the Ministry of Health has made great progress in responding to recommendations of ebusinesses, but the number of outstanding recommendations from the beginning of the year has been still high compared to the total number of recommendations received. The Ministry of Labor, War Invalids and Social Affairs; Natural Resources and Environment are the two ministries with the highest number of outstanding recommendations.

In general, the People's Committees of provinces and cities directly under the Central Government responded slowly to the recommendations due to the fact that the recommendations of businesses were transferred to different levels. The process was usually assigned by the provincial People's Committee to one or more Departments and branches to solve and then report back to the People's Committee to answer the problem ... On the other hand, the cases that businesses proposed under the jurisdiction of the provincial People's Committee were often complicated and long-lasting complaints. According to statistics, the People's Committee of Ho Chi Minh and Hanoi Cities are the two localities with the largest number of unresolved recommendations compared to other localities.

In 2019, the VCCI has also conducted two survey and investigation to evaluate the quality of answering the recommendations of ministries and localities of 1,000 businesses and business associations that have recommendations sent to the ministries, sectors and localities in 2018 and 2019. Survey results showed that:

- The results of the survey and investigation to get ideas of 500 businesses and business associations from January to May 2019 showed that:

+ Regarding the quality of answering recommendations of ministries, localities, there were: 48.57% of businesses answered that they were satisfied, 14.29% of businesses answered that they were very satisfied, 31.43%  of businesses answered that they were not yet satisfied and 5.71% did not evaluate.

+ Regarding the reason of dissatisfaction: Up to 34.29% of businesses answered the answers too generally, explained but did not solve; 11.29% of businesses think that it is necessary to amend the provisions of the law to solve, but the amendments are slow; 11.43% of businesses reflected that authorities only record recommendations but did not resolve them; Particularly, there were 5.71% of businesses reflecting that the authorities answered incorrectly content of the recommendations; 37.14% of business associations / businesses chose another reason ....

- For a survey by 500 enterprises and business associations on the quality of answering recommendations of ministries and localities from June to November 2019, the results are as follows:

+ Responding to recommendations from ministries and agencies: 27.3% of businesses / business associations answered that they were satisfied, 21.2% of businesses / business associations responded that they were not satisfied, 50% of businesses. / business association responded they were unsatisfied. Thus, the ratio of business associations / businesses is not satisfied with the results of responses / resolution of proposals of ministries and sectors is higher than the survey in the first 6 months of 2019 and 2018.

+ Regarding the recommendations resolution of the People's Committees of provinces and cities directly under the Central Government, based on the total number of answers has: 18.2% of businesses / business associations responded they were satisfied, 10.6% of businesses / Business Association responded they were very satisfied, 31.8% of businesses / business associations responded they were not satisfied and 37.9% of businesses / business associations did not evaluate. If calculating separately the opinions evaluated: 30% of businesses / business associations were satisfied, 17.5% of businesses / business associations were very satisfied and 52.5% of businesses / business associations responsed they were not satisfied.

+ Regarding the reason of dissatisfaction: 48.5% of business associations / businesses chose the reason: The answer was too general, explained but not resolved; 10.6% of businesses responded that the authorities only recorded recommendations but not resolved them; 18.2% of businesses thought that it was necessary to amend the provisions of law to solve, but the amendments were slow; 12.1% of businesses responded that authorities responded incorrectly to recommendations and 27.3% of business associations / businesses chose another reason.

Thus, the survey results showed that: Enterprises / business associations assessed that they were not satisfied with answering the recommendations of ministries, branches and localities tending increase. At the same time, the reason that the business / business association rated the answer too general, explaining, but not solving sharply increased (48.5% of the last 6 months of 2019 compared to 34.29% of the first 6 months of 2019). The rate of businesses/ business associations refleced that the authorities did not respond to recommendations were also increasing (12.1% in the last 6 months of 2019 compared to 5.71% in the first 6 months of 2019).  This situation showed that the task of resolving recommendations of ministries, branches and localities needs to continue improving in quality in order to promptly solve difficulties and problems of businesses in order to create business environment more and more favorable for businesses as the Government set out.

1.2. Recommendation contents:

Most businesses made recommendations and suggestions on specific issues arising in the course of production and business as well as implementation of investment projects, etc... There were many recommendations based on personality, not based on businesses and organizations. there are many recommendations from business associations, recommendations on policy issues, major issues of industries and regions and related to the competitiveness of businesses. The main contents of the recommendations include issues as follows:

- The Ministry of Finance received recommendations from enterprises with the main content proposed to guide the implementation of the law on the following issues: comments to amend Circular No. 72/2017 / TT-BTC dated July 17, 2017; policies to support prices of irrigation products and services; policies to support fisheries development; preferential policy of corporate income tax; VAT policy for information technology project consultancy service; personal income tax policy when hiring business individuals to work as laborers; tax refund policy for natural rubber items; calculating the taxable turnover of real estate transfer activities; liquidation of assets of businesses with 100% foreign capital; payment of land rents and additional money for the construction of a trade center project behind schedule; the application of VAT rate of 5% to imported medical goods; ... In addition, businesses proposed to guide the implementation of tax and customs administrative procedures, including: problems in having to convert VAT declaration to the direct method due to the delay of notification of form 06 / GTGT; how to write an added value invoice for the investor to sublease the land; tax declarations of business locations; problems in carrying out procedures for termination of branch operations of the company; problems in the process of verifying expenses of general items under construction and installation bidding packages; invalidation of tax identification numbers of businesses; processing VAT refund dossiers for exported goods; HS code classification for imported goods; maximum time as prescribed, the General Department of Customs must answer the goods inspection results to businesses ...

A number of business recommendations reflected many times but have not thoroughly resolved or businesses believed that they have not been satisfactorily addressed, specifically:

+ Businesses also reflected a number of slow-settling cases, causing difficulties for production and business activities such as: The New Song Co., Ltd. reflected the Hai Phong Customs Department that delayed the results of classification and analyzation; the VNIS Vietnam Co., Ltd. reflected that the Tax Department of District 1, Ho Chi Minh City caused troubles for the company when making or changing the business address of the branch, which lasts from December 2018 until now, but it hasn’t been solved. ; the Nikel Ban Phuc Mining Co., Ltd. sent a second Complaint and appealed against Decision No. 1782 / QD-HQHN dated November 26, 2018 on imposing tax on exports and imports of the company. The first complaint has been sent from December 2018 but so far it has not been answered; the Huynh Tran Co., Ltd reported that the Customs Branch of CS CSK KV4 (ICD1) had checked after customs clearance from March 15, 2019 to April 29, 2019 but received another notice on May 13, 2019. Another notice Number 659 / STQ-ĐSTQ (April 25, 2019) on post-clearance inspection from April 2014 to 2019. The continuous post-clearance inspection has made difficulties for businesses in production and business activities and contrary to the Government’s Prime Minister's instructions about inspecting enterprises only once a year: The Biozym Company reported that since December 2018, it has sent a lot of dispatches to the General Department of Customs, Hai Phong City Customs Department of and Customs Department of Hai Phong Port Area 3 to ask for guidance and support on the process of tax refund for shipments of food raw materials, electronic customs declaration No. 102374678932 / A11 with refund amount of VND 410,840,117 (four hundred and ten million eight hundred forty thousand one hundred seventeen copper). However, the incident has lasted and it is not clear when the tax will be refunded; The Rang Dong Light Bulb Joint Stock Company reflected that the company often exported LED lighting products, bowel thermos and thermos to foreign markets and most of them were green, exempted and cleared quickly, rarely red channel. However, from August 13, 2019, 100% of the Company's export declarations has been in red channeled. This incident has wasted time, increased costs, has affected the loss of business opportunities, reduced competitiveness in the international market of the company;The Kingmo New Materials Vietnam Co., Ltd proposed that the Bac Ninh Customs Sub-Department issued a decision to impose tax on 61 declarations of exported products from imported raw materials declared according to the type of export production from the date of September 1, 2016. The company believes that the change in tax policy in Circular 38/2015 / TT-BTC and Decree No. 134/2016 / ND-CP from September 1 / has not been updated by the customs authorities to declare. The customs authority has decided to retrospectively export tax, making the company has become in very difficult situation ...

+ A number of businesses operating in the supporting industry sector reflected in the Dialogue Conference on tax and customs administrative policies and procedures in 2018, the Ministry of Finance and the General Department of Taxation responded that the projects investing in manufacturing of supportive industrial products made before January 1, 2015 is not entitled to enterprise income tax incentives in the field of development of supporting industrial products prioritized for development under the provisions of Law No. 71. By exchanging with a number of other businesses in the Japan Business Association in Vietnam as well as through business information obtained from the community of investors in Vietnam operating in the industrial sector supported from other countries (Vietnam, Korea, Taiwan, China), General Department of Taxation and some local Tax Departments have also issued a number of documents answering some businesses, which also express the above opinions.

According to businesses, the above-mentioned opinions of the Ministry of Finance and the General Department of Taxation have seriously affected the interests of enterprises investing in production in the field of supporting industry in Vietnam in general in receiving priority of Government of Vietnam. These opinions are completely inconsistent with the provisions on ensuring investment incentives and taxation in the legal documents on investment and tax. Therefore, businesses proposed to the Government’s Prime Minister and the Government should have a clear conclusion on the Ministry of Finance's point of view at the Conference to support businesses.

+ Some businesses operating in the field of wood processing proposed to revise the export tax increase of woodchip from 2% to 5% in the draft Decree amending and supplementing Decree No. 125 / 2017 / ND-CP. Businesses said that the impact of increasing export tax of woodchip would affect afforestation investment activities, affecting the completion of the target of forest cover from 41.6% to 45% under Decision No. 419 / QD-TTG, signed on April 5, 2017, approving the national program on sustainable management of forest resources till 2030 of the Government’s Prime Minister.

+ A number of businesses operating in the field of logistic reflected that the customs office will fine the transport businesses for infringing the intellectual property rights of goods in transit, causing difficulties for transport businesses. These businesses provide international logistics services, provide transit services on Southeast Asia routes (Hong Kong - Shenzhen - Vietnam - Laos - Thailand - Malaysia - Singapore), have a fleet of container trucks Professional transit, with logistics license Vietnam - Laos, Vietnam - Cambodia. Goods transited by Lao company hiring the service of transporting goods t transited through Vietnam are inspected by the Vietnamese Customs agency, as soon as the container has just been hoisted from Chinese vehicles to the company's trucks in the Huu Nghi border gate customs supervision area. During the inspection process, the customs office shall notify the discovery of goods in containers of goods of foreign owners infringing on intellectual property. However, the Customs issued a sanctioning decision for the company, which is only provides transportation services. Penalties for transport businesses on the intellectual property infringement of transit goods were completely inconsistent with Vietnamese law and international practice, and would cause shippers to find other transit routes instead of going to Vietnam.

+ The Japan Business Association in Vietnam, which represents member businesses, requested  the Government to review Article 8, Point 3 of the Government's Decree 20/2017 / ND-CP issued on February 24, 2017 on reasonable cost deduction principle for associated transactions. In the opinion of the Association, the application of this provision to both interest costs from the independent party when in Vietnam still needed actual capital mobilization would have a huge negative impact on the businesses’ operation. Also in this regard, the Binh An Real Estate Development and Investment Joint Stock Company, Nha Rong Investment and Trading Joint Stock Company and RC12 Investment Joint Stock Company requested the Government to review Article 8, Point 3 of Decree 20/2017. / ND-CP of the Government dated February 24, 2017 providing for the principle of deducting reasonable expenses for associated transactions. From the companies' point of view, as the Clause 3, Article 8 of Decree 20/2017 / ND-CP stipulated that the interest expenses incurred in the period of the Company would only be deducted when determining the income subject to corporate income tax. did not exceed 20% of the total net profit from business activities plus interest expenses and depreciation expenses during the period of the Company, so these Companies were excluded interest expenses made for the Company The increase in virtual profit lead to an increase in the Company's corporate income tax amount and must be paid at the expense of the profits causing damage to the company.

+ The Tuyen Quang Business Association reflected Circular No. 44/2017 / TT-BTC stipulating the price bracket for calculating royalties for groups and types of natural resources with similar physical and chemical properties, the difference in the price bracket for calculating tax price deviations among provinces and cities nationwide. Specifically, based on the comparison between Announcement 540 / CBLS / XD-TC and Circular No. 44/2017 / TT-BTC, prices in Tuyen Quang Province and other provinces in the Northern mountainous region, compared to the price level. The minimum royalty calculation is lower than 155%, the difference is lower than the minimum price of the royalty calculation price frame promulgated by the Ministry of Finance with 155%. Therefore, the Ministry of Finance is requested to consider and resolve this issue and soon issue documents to amend, supplement and overcome inadequacies in price differences in Circular 44/2017 / TT-BTC. In addition, Nikel Ban Phuc Mining Co., Ltd. also submitted a written comment to the Circular amending and supplementing Circular 44/2017 / TT-BTC "setting the price bracket for calculation of royalties for groups and types of calculated resources. Physical and chemical properties are the same ”. The Company believes that this draft amendment to Circular 44/2017 / TT-BTC (with the comments of the People's Committee of Cao Bang Province), the Company sees the price bracket for calculation of royalties on nickel minerals listed in the draft is still very high on the condition of ore mining.

+ The Vinafarm Vietnam Joint Stock Company reflected that the State Reserve Department in Nghe Tinh region opening a tender package of 16,000 tons of rice to be stored in the National Reserve. The company has contacted many times directly at 15 Nguyen Sy Sach, Vinh City, Nghe An Province but the State Reserve Department of Nghe Tinh area did not provide information related to the bidding documents. The business said that there were signs of "group interests" in the sale of bidding documents, reflected in a non-transparent and deliberate manner that has made it difficulties for businesses to access.

- The Ministry of Planning and Investment mainly has received recommendations from businesses requesting guidance on the implementation of policies and laws, most of them are recommendations to guide the law on bidding (about 60%) with content from dossiers, procedures to regulations on bid evaluation, online bidding ....

Some contents that the business proposed to guide for implementation including: Supplementing business lines for enterprises that are not in the WTO commitments; problems when making supplementary business lines; guiding the transfer of a part of capital contribution to foreign individuals; problems regarding investor registration procedures for the project to build a new ICD Logistics Center in Hanoi; problems in the implementation of the Law on Investment and related Decrees such as: guiding foreign investors to set up 100% foreign-invested companies to set up medical equipment manufacturing establishments with type of  B, C, D; transfering Company's capital to foreign investors; guiding project investment procedures; conditions and procedures for converting 100% Vietnamese-invested schools and colleges into 100% foreign-invested schools; investment conditions for post-production activities; procedures after the end of the project's life time; determining criteria are foreign-invested businesses according to the 2014 Investment Law; competence to decide on investment guidelines on urban construction projects; registration of adjusting annual investment capital; procedures for investment in commercial housing projects and power transmission projects in accordance with the Government's Decree No. 40/2019 / ND-CP dated May 13, 2019 ...

The amendment of the Enterprise Law and the Investment Law has received great attention from the business community. In 2019, there were many comments from businesses, business associations and experts with the draft Enterprise Law and Investment Law. The comments include: a new portfolio with a small number of industries restricting foreign ownership; reforming state-owned enterprises; legal institutions for individual business households; General Meeting of Shareholders; mechanism of operation of the Control Department in the business….

- The recommendations sent to the Ministry of Construction all suggested guiding the implementation of the law on a number of contents: determining project management costs in construction investment; authorization / decentralization in the acceptance of construction works to contribute capital with land use rights for real estate business; guiding the dossier of application for the first-time operation capacity certificate in the field of construction and grant of operation capability certificates and operation licenses for the topographic survey and work measurement; calculation of design consultancy expenses for irrigation works; guiding the preparation of detailed planning dossiers of investment and construction projects; adjusting package contracts in force majeure circumstances; finalizing reserve value in package contracts; extended construction contracts according to 1172 norms; procedures for adjusting works; using electronic and digital signatures in construction design drawings; determining the area inscribed in the certificate for resettlement apartment; guiding the management of investment projects and conditions for being project investors with capital from the state budget; problems when implementing the establishment of construction investment management board, acceptance of maintenance results of periodic railway repair works, handling of the lack of bidding volume in bidding for package contracts, and price of construction activities capability; procedures for exporting quarry ordinary construction materials; transfering projects; mechanism for officetel apartment building (office with residence function) ... In addition, there are some outstanding recommendations such as:

+ The Vietnam Roofing Association sent a document to the leaders of the Party, State and many ministries and proposed on the project "the roadmap to stop using chrysotile asbestos to stop using chrysotile asbestos from 2023". The Association's position is to reflect on the implementation of this Project. This is the problem that the Association and businesses have proposed over the years. The Ministry of Construction and other ministries and agencies have made explanatory documents many times but they have not yet convinced the Association and businesses ...

+ The Vietnam Construction Contractors Association sent a written request to the competent agencies for amendments to the Construction Law. The comments’ content includes: Uniformity in the legal system; Inequality between the entities in a construction contract; Shortcomings in paying labor insurance contracts for short-term from 1 to less than 3 months of construction industry; problems related to the issue of practice certificates in construction activities; inspection and examination have caused difficulties to construction enterprises; problems about norms - unit prices and evaluation of estimates.

+ Representatives of businesses dealing in sanitary equipment products reflected that from 2016 up to now, sanitary ware products, especially sanitary ware and civil porcelain, have been imported massively from China into the market. Vietnam's market with large quantities and very low selling prices negatively impacted on production and business activities of domestic manufacturing enterprises. Through preliminary investigation, businesses have discovered a number of issues of commercial fraud, imported products of unclear origin such as: large quantity of imports, low prices, violating packaging regulations, labels, lack of quality control ... This is an unfair, unequal competition, violating the laws of organizations and individuals that import poor quality Chinese goods into the Vietnamese market threaten to the existence of many businesses in the industry, causing a risk of social instability from the loss of workers and possibly the disappearance of a business.

+ The DT Vietnam Construction Investment Joint Stock Company reflected: In order to avoid bidding fraud, companies often looked up contractor information on bidding on the website (http://hdxd.xaydung.gov. vn / cqlhdxd / list-list-nha.html) and saw if there was a certificate of construction activity. However, during the search process, some contractors showed their names on the page of the Construction Management Department, but some other contractors did not. This showed that the data of the website is lacking up-to-date and support to businesses in the search.

- The Ministry of Labor, War Invalids and Social Affairs has received recommendations from businesses asking for guidance on the implementation of the law on the following contents: working time for female workers during the time of raising children and determination of setting the maternity salary payment and confirming how to calculate the number of annual leave days (annual leave); problems when conducting the labor discipline process; paying for working time of shift 3 overlapping on weekends, holidays, New Year; payment of unemployment benefits due to restructuring of the industry; asking for confirmation that not being subject to work permit; duration and number of labor outsourcing; clarifing the operating scope of employment service enterprises; the application of the provisions of Point c, Clause 8, Article 10 of Decree No. 11/2016 / ND-CP of the Government; organizing conferences of laborers to collect ideas on labor employment plans before approving the enterprise equitization plan; regime for employees, difficulties in determining the regime for redundant laborers in the labor utilization plan when equitizing enterprises; exemption from state quality inspection of imported goods of group 2; compensation for workers who have accidents on the way to work; employment and related procedures in case of business merger; implementation of social insurance procedures in case of business merger; the company's responsibility to workers who suffer from traffic accidents on their way to and from work each day; issuing work permits to foreigners; handling violations of enterprises' operation according to the employment service operation license; disciplining employees; paying labor insurance for foreign workers; determining the demand for foreign labor; applying the form of intra-corporate transfer ...

++ Korea Trade and Industry Association in Ho Chi Minh City (KOCHAM) forwarded the proposals of Korean businesses to consider and amend the content of the Draft Labor Code with 5 contents: renewal of a work permit (GPLĐ) for employees. foreign caves; reduced maximum weekly working hours (44 hours); increased the overtime to a maximum of 400 hours/year; cumulative overtime paid and allowed the establishment of more labor representative organizations in the enterprise.

+ The VCCI and 6 Business Associations including the Vietnam Association of Seafood Exporters and Producers (VASEP), the Vietnam Textile and Apparel Association (VITAS), Vietnam Leather and Footwear Association - LEFASO, and Japanese Business Associations enterprises in Vietnam (JCCI), Vietnam Electronics Business Association (VEIA) and American Business Association in Vietnam (AmCham) for the first time agreed to sign a joint recommendation on 5 issues in the Project. The revised Labor Code, if approved, could have a positive impact on production activities of enterprises.

- In the field of natural resources and environment, the Ministry of Natural Resources and Environment received the following recommendations: Guiding the households for land lease with lump sum payment to foreigners renting land;; reflecting the implementation of administrative procedures has not yet announced and publicized; conditions for receiving transfer of kindergartens and schools in urban areas; guiding the identification of hazardous waste and guiding the recovery and reuse; recognition of residential land for land users before December 18, 1980; granting certificate of ownership of office/apartments having function of staying; guiding the formulation of environmental renovation and restoration plans of mineral exploitation projects; guiding households for renting land with a lump sum payment to rent foreign organizations renting land; regulations on adjusting investment policies when changing the time and progress of implementing public investment projects; guiding the conversion of land use purposes from commercial and service land to residential land; problems when executing investment projects, trading in technical infrastructure of industrial clusters; suggesting guidance on making state budget estimates for land valuation; guiding the provisions of law on the leasing of workshops on assigned land with annual payment; authority to recognize auction results of land use rights.

In particular, there is a recommendation from Hiep Thanh Company that the People's Committee of Ca Mau Province has not issued a certificate of land use rights and house ownership rights for houses and residential land at 18 Ngo Quyen Street, Ward 2, Thanh. Ca Mau city for auction winner since 2013. The company has repeatedly submitted the application to the People's Committee of Ca Mau Province and sent to the ministries and central branches for definitive settlement. The Government’s Office also sent a written request to the People's Committee of Ca Mau Province to solve the problem for the company. However, so far the case has not been resolved with the reason that Ca Mau People's Committee has consulted the guidance of the Ministry of Natural Resources and Environment but it has not been answered by the Ministry, so it has not been resolved completely.

- The Ministry of Industry and Trade has received recommendations from the businesses on the following contents: Requesting for guidance of necessary capital in accordance with the law for dossiers of application on business licenses for machinery and equipment leasing services and measure equipment of PIM with HS code 9030; procedures for establishing representative offices in Vietnam for foreign investors; guiding the right to distribute software products of foreign-invested enterprises; retail licenses with foreign-invested enterprises; certificate of conformity of textile products according to Circular 21/2017 / TT-BCT ... Some outstanding recommendations such as:

+ The Thuan Phat Export Services Co., Ltd reflected the total cost for specialized inspection of 1 laptop was VND 50,545,000 including 7 testing procedures: QCVN 118: 2018 / BTTTT- testing at QUATEST3 price of VND 5,250,000; QCVN 54: 2011 / BTTTT- testing at QUATEST3 was VND 2,625,000; QCVN 65: 2013 / BTTTT - testing at QUATEST3 was VND 2,625,000; QCVN 112: 2017 / BTTTT- testing at QUATEST3 was VND 5,250,000; QCVN 101: 2016 / BTTTT- testing at QUATEST3 priced was VND 26,250,000; Certificate of conformity including fee for receiving and reviewing documents: VND 1,815,000 and fee for evaluating and granting certificate of conformity: VND 2,530,000; energy efficiency standards TCVN 11848: 2017- tested at QUATEST3 was VND 4,200,000 (done before customs clearance). Therefore, if a computer sells a profit of VND 500,000, it must enter more than 100 new ones to pay enough fees for specialized testing. This is a major challenge for small businesses. Businesses recommended a solution to reduce this cost.  

+ The Vietnam Sports Joint Stock Company reflected the Dong Da Electric Power Company signing electricity trading contract with Delicious Company (signed a business cooperation contract No. 22/2015 / HD-HTKD to join together) business cooperation in premises at 4B Hang Cong - owned by the joint stock company of Vietnam Gymnastics and Sports Joint Stock Company) to provide three-phase electricity to Delicious Company to produce and operate at the No. 4B Hang Chao street without notice and without the consent of the legal owner is Vietnam Sports Joint Stock Company. After many sports joint-stock companies in Vietnam directly worked and sent recommendations to the Dong Da Electric Company, Hanoi Electricity Corporation, but it was not settled, so they had to send recommendations to Government’s Office.

- The Ministry of Justice received a number of recommendations, including the one proposed by the Minh Tuan Co., Ltd., Quang Ngai Province, which reflected the enforcement of the distraint of assets of Son Tinh District and Quang Ngai district. The mortgaged property was also not in the judgment of the court and the company's assets were sold while the company was claiming a price which proposed to suspend but this has not been resolved.

- The health sector received a number of recommendations with the following contents: problems in the implementation of the provisions of Decree No. 36/2016 / ND-CP dated May 15, 2016; Decree 169/2018 / ND-CP dated December 31, 2018 of the Government; the amendment subject of the regulation of Circular No. 41/2018 / TT-BYT dated December 14, 2018 on “Promulgating national technical regulations and regulations on inspection and supervision of quality of clean water used for living purposes ”; requesting guidance for providing information on national pharmaceutical portals; requestingt guidance of the implementation of the Government's Decree No. 155/2018 / ND-CP dated November 12, 2018 on amending and supplementing a number of regulations related to conditions for business investment under the scope of house management Ministry of Health; applying for a certificate of eligibility for food hygiene and safety; guiding procedures related to business conditions for polyclinics ... Some outstanding recommendations such as:

+ The Cekindo Co., Ltd. reflected the Department of Food Safety - Ministry of Health repeatedly delayed in processing documents and returning results of registration of the announcement. The company contacted the Department leaders many times, but only received answers that they would respond soon, but did not specify the reason for the delay and did not give a specific date for returning results. The delayed answer byFood Safety Department has seriously affected the business’s company. Moreover, this is not the first time the Food Safety Department delayed, all products registered by the Cekindo Business International Co., Ltd. have been delayed for results compared to the regulations without explanation. ...

+ Many businesses reflected on the unreasonability when applying Circular No. 43/2012 / TT-BYT dated November 24, 2018, guiding Decree 38/2012 / ND-CP, which has expired to guide Decree. The Decree 15/2018 / ND-CP (Decree 15 is issued to replace the Decree 38). This application has made difficulties for enterprises to label goods for food products. If the promulgation of Decree 15 replacing the Decree 38 is considered as a bright spot of the Ministry of Health in reforming administrative procedures to create favorable conditions for businesses, the competent authorities still apply Circular 43 / 2012 / TT-BYT dated November 24, 2018 guiding Decree 38/2012 / ND-CP is typical for obstructing and making business activities of many businesses congested in goods circulation.

+The American Business Association in Vietnam (AmCharm Vietnam) made a recommendation that on April 19, 2019, the Department of Food Safety - Ministry of Health issued a Document No. 1234 / TB-ATTP guiding additional documents of GMP certificate in manufacturing, trading and registration of the statement of health food products, and in May 2019, it published a Circular draft guiding GMP in manufacturing and trading of health food. healthy with a comment deadline of July 17, 2019. Both of these documents have a lot of practical and legal inadequacies, which can greatly affect the operation of health food business enterprises in Vietnam. After receiving the recommendations, the Ministry of Health organized a seminar to contribute comments to the Circular Draft with the participation of AmCharm representatives. This cooperation of the Ministry of Health is highly appreciated by AmCharm.

- In addition to the ministries and branches that have received such a large number of recommendations, all other ministries and agencies have received proposals from enterprises / business associations with the main content proposing ministries and branches to guide the implementation of the law, have answered to issues that businesses find legal regulations difficult to understand, can understand in many different ways.

- Recommendations that businesses have sent to localities mainly request to solve specific difficulties encountered by enterprises in production and business activities such as: proposing to solve difficulties for enterprises in implementing projects. The Nui Sam cable car, Chau Doc City, An Giang Province; proposed to solve problems when implementing a bid No SP 1/01 / ICB package on "Building Sapa drainage and treatment system"in Lao Cai Province; difficulties in limiting and licensing freight cars in the inner city area of ​​Ho Chi Minh City. Inadequacies in merging Dung Quat Hospital into General Hospital of Quang Ngai Province; determined the locations to allow foreigners to own housees in Bac Giang City; problems in the implementation of the investment project, construction of Viet Duc universal reincarnation station in Thung Lang, Nam Son Ward, Ho Chi Minh City. Tam Diep,  Ninh Binh Province; solved interests and benefits for enterprises from exploiting, utilizing, collecting and consuming forest products at Ta Thiet protection forest management board of Binh Phuoc Province; difficulties and inadequacies when registering to change business information in the city. Ho Chi Minh; proposed to handle the project delay implementation and advance payment of the No XL0-02 bidding package: Designing, constructing and operating of Nhieu Loc - Thi Nghe wastewater treatment plant; guiding the granting of land use rights for investment in the construction of social houses and smart urban areas; proposed to handle Hanoi traffic signs that do not comply with the technical regulation No QCVN 41: 2016 / BGTVT; procedures for transport business licenses for businesses in Hanoi; guiding procedures for investment cooperation with foreign countries in the field of education and training; guiding the handling of administrative violations of 140 kiosks at the fruit wholesale market in Hai Phong; making recommendations on the long and contradictory working process of the business registration office. Hai Phong City; guiding procedures for renting water surface for making tourist wharves in Ba Ria - Vung Tau; recommending the provincial People's Committee to approve the investment policy of clean water plant project in Thanh Hoa Province; proposing to support enterprises that are leased land to implement pineapple and vegetable farming farm project in the direction of eco-technology in Tien Giang Province; proposing consideration re-granting low-voltage electricity lines to the electricity project of Huong Son Commune, Bac Giang Province;

2. Summary of the commitments implementation with the People's Committees of provinces and cities on business environment:

 By monitoring the implementation of VCCI's commitments and reports of the People's Committees of provinces and cities, there are some remarkable results and limitations as follows

2.1. Results:

- The implementation of Resolution 35 / NQ-CP in the past 3 years has created a positive change in the ideology and awareness of officials and public servants at various levels of local government, especially is way, manners and service attitude. Business development and investment attraction have been paid attention by localities. Activities to support businesses such as training, trade promotion, credit guarantee, business germination ... have implemented and received positive responses from the business community.

- The model of a provincial public administrative center aimed fastest settlement of administrative procedures (administrative procedures) for people and businesses has been established more by localities. Some localities have implemented and diversified forms of receiving and returning results, providing information about the status of application processing via postal service, SMS or online searching on the website. In 2019, many localities have opened provincial public administration centers such as Lai Chau, Cao Bang, Quang Tri, Kon Tum and Gia Lai provinces, ...

- Information technology is widely applied in providing public administrative services at all levels from central to local levels. In some localities, most of the services under the jurisdiction of provincial departments and people's committees have been implemented at level 4, i.e., receiving, processing, approving and results are given in an connected online environment. Some localities (Quang Ninh and Thua Thien Hue provinces, ...) have actively implemented and completed the e-government architecture system and achieved positive results.

- Many localities have proposed to coordinate with VCCI to organize a conference to evaluate and analyze in-depth the Provincial Competitiveness Index (PCI), the Executive Competitiveness Index of the Departments, Committees, and Agencies. local authorities (DDCI), from which, positive solutions offered to focus on improving the quality of government administration, developing a favorable, transparent and attractive business environment for investors ... some provinces in addition to implementing PCI, DDCI has been implemented at provincial, district and district levels such as Quang Ninh, Lao Cai, Lang Son, Thua Thien Hue and Quang Ngai Provinces. the business environment in these localities has been significantly improved through scores and rankings of localities on the PCI Rankings every years. The most prominent is Quang Ninh with 2 consecutive years (2017,2018) between the number 1 position on the PCI rankings.

- Implementing Resolution No. 139 / NQ-CP dated November 9, 2018 of the Government on promulgating the program of action to cut costs for businesses, In 2019, many ministries, sectors and localities continued review and submit to the Government for abolishment and simplification of business conditions that are unclear, not specific and not feasible; formulating and promulgating an action plan on cost cutting for enterprises in the fields and areas under the management of ministries, branches and localities (ministries: Finance, Industry and Trade, Agriculture and Rural Development; Provinces: Binh Duong, Dong Thap, Tuyen Quang, ...).

- Các Bộ, ngành và địa phương tiếp tục đẩy mạnh triển khai các chính sách hỗ trợ khởi nghiệp, hỗ trợ doanh nghiệp nhỏ và vừa theo tinh thần Nghị quyết 35 và Luật Hỗ trợ doanh nghiệp nhỏ và vừa (DNNVV). Tính đến hết Quý III/2019, cả nước có trên 50 địa phương xây dựng kế hoạch, đề án hỗ trợ DNNVV, hỗ trợ doanh nghiệp khởi nghiệp. Một số tỉnh/thành phố đã rất chủ động và tích cực xây dựng và thực hiện các chính sách của địa phương về thúc đẩy khởi nghiệp và hỗ trợ DNNVV trên địa bàn như: Hà Nội, Thừa Thiên Huế, Đồng Tháp, Hà Tĩnh, Bà Rịa Vũng Tàu,…

- Ministries, branches and localities continue to promote the implementation of policies to support start-ups, support small and medium-sized enterprises in the spirit of Resolution 35 and the Law on Support for Small and Medium-sized Enterprises (SMEs). By the end of the third quarter of 2019, the whole country had more than 50 localities developing plans and schemes to support SMEs and startups. Some provinces / cities have been very proactive and active in developing and implementing local policies to promote startups and support SMEs in the area such as Hanoi City, Thua Thien Hue, Dong Thap, Ha Tinh. , Ba Ria Vung Tau Provinces,…

- Regular contact and business meetings between local leaders, heads of departments and business communities are conducted regularly in most provinces and cities, even at district level. ; the frequency is usually about 2-3 times / year. Some provinces, the number of meetings of leaders with the business community takes place regularly and monthly are included in the local Program / plan. Many localities are constantly innovating the form of dialogue such as thematic dialogues combining propaganda, popularizing policies for businesses such as Quang Ninh, Thua Thien Hue and Dong Thap Provinces ...

- Start-up activities and start-up support in localities are becoming more and more popular, contributing to step by step forming a startup ecosystem. Many localities have actively organized contests and events on startup (Can Tho, Thua Thien Hue and Ba Ria-Vung Tau Provinces...).

2.2. Exists and limitations:

- The implementation of local policies is still difficult due to the inconsistent legal documents and guiding documents for implementation at the central level, especially in the fields of land, investment, construction, environment ... This fact has contributed to the situation of overlap, lack of coordination among ministries, branches and localities in the implementation of solution tasks to encourage and support the development of the private economy. Many support projects and programs are still fragmented, ineffective and have not been properly monitored and evaluated with practice.

- Quality of business and investment environment in localities still has limitations that require continuous drastic improvement; In general, the implementation results show that not achieving targets Resolution 35 / NQ-CP and the Commitment signed; have not not meet the expectations of the business community.

- The number of business development to 2020 of some localities is difficult to achieve as committed. The management of businesses after business registration is limited. The number of business operating effectively is not high, the competitiveness is limited; There is no mechanism to encourage households and individual business households to develop into businesses.

- The one-stop shopping on investment has not met the expectations of businesses due to the legal system related to investment activities such as Investment Law, Land Law, Construction Law, Bidding Law ... still be inadequate, lack of unity. There still exists the phenomenon of "one-stop shopping with many locks", businesses, organizations and individuals in many cases still have to contact with specialized departments to solve administrative procedures.

- Investment attraction has still faced many difficulties due to issues related to land and environment. In particular, FDI projects have carried out outside industrial zones that are stuck when carrying out procedures for land use conversion because the Land Law does not allow foreign investors to receive direct transfer of land by households, families and individuals. The investment in construction of technical infrastructure of industrial parks and industrial complexes has not yet met the schedule to attract investors and lacked clean land fund to meet the needs of investors.

- The application of information technology in some agencies and units is limited, lacking the connection and connectivity of the information system between agencies and units.

- Many cadres and civil servants still deliberately cause difficulties and troubles for businesses and people in checking, inspecting and carrying out administrative procedures. Inspection of public service is not satisfactory, the detection and handling of violations are not timely and thoroughly.

- Policies to support start-up businesses and startups are still widespread and unattractive due to low support levels, complicated support procedures, and difficulties to implement. Many localities have issued industrial zone development plans and detailed land plots for SMEs to rent. However, according to the current regulations, local budgets are not allowed to invest in infrastructure of industrial clusters and land plots for SMEs to rent, while local authorities have not attracted many investors to invest. infrastructure development of industrial clusters, land for SMEs.

- The majority of businesses in the localities are small and medium-sized enterprises, lacking of experience and competitiveness, especially is in the integration period. The product quality of the business has not been paid attention to invest and the corporate governance is poor.

- Legal services to support businesses in the locality are lacking, failing to meet the needs of businesses. Business support programs such as accounting, auditing, consulting, tax agents, and customs have not met the requirements of businesses. The quality of the team of lawyers is not high, lacking in both quantity and quality.

2.3. The causes of these outstanding problems:

- "Management addiction" mindset still exists in state management agencies, especially in localities.

- Incomplete public-private investment (PPP) mechanism has affected the participation of private sector in many economic activities. Some projects and constructions have invested by the state budget failed to create favorable conditions for the private sector to participate.

- Though policies to support business households to transform into enterprises under Law on Enterprise have been issued, specific guidance has not been effective. Specific support has been provided by some localites, namely as financial support. However, it has not really attracted business households.

3. Conducting surveys and statistical reports, summarizing official and informal record charges, comparing with other regional and international enterprises and proposing solutions to reduce costs for enterprises:

Continuing speeding up the implementation of Resolution No. 35 / NQ-CP dated May 16, 2016 of the Government on Supporting and Developing Enterprises until 2020, in 2019, VCCI implemented a Project on “ Research on business expenses, comparing with other businesses in regional and global scope”. The year 2019 is also the third consecutive year VCCI  has implemented this Project. Specific activities implemented this year include: (i) Conducting a survey among 500 enterprises across the country, synthesizing feedbacks and assessments of Vietnamese businesses on compliance cost (in cash and time), input cost ( in cash), and the causes behind accelerating expenses after 3 years of implementing Resolution No. 35; (ii). Organizing 02 seminars on electronic invoices, accounting regime in enterprises and building systems through enterprise restructuring to get access to resources (capital) in Ha Tinh and Binh Thuan Provinces. (iii) Organizing 05 training / coaching programs on implementation of a number of state policies on tax, social insurance, labor law or the application of advanced business management model, contributing to minimize business expenses; (iv) Sending a delegation to learn about business costs in European markets (France, Belgium, Netherlands); (v) Carrying out research on 03 special subjects on compliance costs of Vietnamese businesses according to international organizations' assessments; costs of business households when transforming into enterprises; summarizing typical problems in 2019 on business expenses and quality of public administration reflected by the media and enterprises. Some major results achieved when implementing the Project in 2019 are as follows:

(i) As a matter of fact, implementing the Resolution 35 / NQ-CP on improvement of the environment and reducing business conditions in Vietnam is the basis for reducing the costs of businesses. However, the actual survey results from 500 enterprises have showed that most businesses have perceived costs (both in money and time) as either constant or higher than in the past. Only a few numbers of businesses have perceived that business costs are getting lower. While business costs of businesses have tended to increase due to many economic and non-economic reasons, the survey results have reflected that the effectiveness of the implementation of Resolution 35 / NQ. –CP has not met expectations, and also point out the challenges in reducing costs for Vietnamese businesses over the past few years.

(ii)     Among all types of costs, accessing land and business premises account for most of enterprises’ budget and time, followed by corporate tax, accessing credit, and obtaining a construction permit. According to them, this situation was due to the complicated administrative procedures, making businesses have spent a lot of money and time for preparation and waited for approval. Though "harassment in service quality" still remains in some public sectors, it is no longer a major cause of the increase in business costs.

(iii)   Comments on business costs drawn from VCCI's survey were consistent with the assessment of the World Bank on Doing business 2019. According to the World Bank, business costs in Vietnam are basically high compared to other countries in ASEAN region (such as Singapore or Malaysia). In particular, the energy expense in Vietnam is 49 times higher than that in Philippines. Vietnam failed to reach the target of being on top 4 Asian countries’ business environment in 2019.

(iv)    In addition to assessing business costs of businesses, the results of the proposals implementation also have provided assessments and comments on administrative procedures and business conditions of local enterprises, as well as the content of transforming business households into businesses:

- Most businesses in many localities have perceived that it has been more convenient to carry out administrative procedures (administrative procedures) in the present in comparison to the period before Resolution 35 / NQ-CP issued that thanks to many localities have adopted the one- one-stop service department. Accordingly, business registration is the procedure to get the most benefit from the one-stop service department, next is the tax procedure. However, businesses also said that the main barriers of the implementation of administrative procedures today are conditions, reporting procedures and skills attitude of civil servants.

- In fact, business households have still encountered difficulties in transforming into enterprises. In terms of complying with the business policies and administrative procedures, most business households concern that they will have to pay higher taxes, declare, pay taxes themselves, and take responsibility before law for the declared data. Regarding following accounting regime, enterprises will have to manage accounting records, invoices and financial papers as prescribed, and human resources for accounting work as well, etc. There exists “stable” mindset among most business households in business operation. These are the main hindrances to the transformation into enterprises.

4. Developing feasible programs and measures to continue enhancing the quality of activities, fulfilling the role as a political, social and professional organization of the business community, businessmen and employers:

In 2019, the VCCI has continued improving the quality of its operations, fulfilling its role as a political, social and professional organization of the business community, entrepreneurs and employers. In general, the VCCI has successfully completed its role as a national organization representing the business community. The quality of activities have been continued to be improved and achieved comprehensive results. The role and position of VCCI have been continued to be enhanced. The VCCI is entrusted with many important tasks by the Party and State. The outstanding activities in the groups are as follows:

The outstanding achievements are:

- Activity focusing on making comments and developing policies and laws: Holding 320 conferences, seminars on commenting and disseminating policies and laws with the participation of 46,000 businesses. Participating in 20 drafting committees and editorial teams, 16 council of appraisal and verification of legal documents, projects, draft legal documents related to businesses. Gathering opinions of the business community to finalize 115 draft legal documents, including: 07 Laws, 34 Decrees, 06 Decisions of the Government’s Prime Minister, 01 Resolution of the Supreme People's Court, 60 circulars of the Minister, 01 Decision of the Provincial People's Council and 06 other drafts. Submitting reports to the Government’s Prime Minister to review 20 major overlaps in Laws and legal documents in the fields that have great impacts on businesses and business environment.

- Strengthening investment and trade promotion , supporting training for businesses

+ Organizing 132 delegations with more than 5,000 Vietnamese enterprises going abroad to conduct market research, attending international conferences, and seeking for investment and business opportunities. Some notable delegations such as the business delegation accompanying the Government’s Prime Minister Nguyen Xuan Phuc on his official visit to Romania and Czech Republic from April 14-18, 2019, others accompanying the Government’s Prime Minister Nguyen Xuan Phuc on his official visit to the Russian Federation, the Kingdom of Norway and the Kingdom of Sweden from May 20-29, 2019. Within the framework of the programs, the VCCI hold business forums such as Vietnam - Romania, Vietnam - Czech, Vietnam - Russia, Vietnam - Norway, Vietnam - Sweden Business Forum to help Vietnamese enterprises to have the opportunity to meet, contact, establish business relationships as well as conduct market research. At the Forums, 16 cooperation agreements, contracts and memorandums of understanding were signed among businesses, many of which were worth tens of millions of dollars.

+ Welcoming and arranging the itinerary for more than 250 delegations with 15,500 foreign businesses visiting and conducting market research in Vietnam: Argentina business delegation accompanying the President of Argentina on his official visit to Vietnam; Nepal and Dutch business delegations accompanying the Prime Minister of Nepal and the Prime Minister of the Netherlands on their official visits to Vietnam, The Japanese business delegation led by Mr. Kobayashi Yoichi, Chairman of Japan-Mekong Business Cooperation Committee.

+ Hosting and coordinating to organize nearly 450 conferences, seminars, and business meetings with the participation of more than 53,000 businesses on many different topics and special subjects to strengthen the activities on trade and investment promotion both at home and abroad. Some remarkable events are: Vietnam CEO Forum; Mid-term Vietnam Business Forum 2019; Vietnam Business Summit 2019; Vietnam - US, Vietnam - Sweden, Vietnam - Japan Economic and Economic Dialogue Summit ...; Asian Business Summit; High level dialogue on Asian Italy economic relations; Workshop “ASEAN + 6 Comprehensive Economic Partnership Agreement (RCEP); and many seminars, business forums between Vietnam and other countries, and targeted markets.

+ Implementing Project 25 on "Promoting bilateral trade and investment cooperation between Vietnam and strategic and important partners", in 2019, the VCCI stepped up practical activities to promote cooperative relations between Vietnam and strategic partners such as: Seminar on "Trade and Investment Promotion between Vietnam and strategic partners: Enterprise perspective"; Proposing the initiative to establish the "Vietnam investment and trade promotion network " (VITPN) to link trade promotion organizations to join this network to connect with each other, work together to improve the efficiency of trade and investment.

- VCCI’s participation in creating favorable business environment for enterprises pursuant to VCCI's Resolutions 02 and 35 has continued to affirm its role and position as a national organization representing the business community, businessmen and employers in Vietnam through the following activities: synthesizing the legal problems, commenting on  creating legal policies; synthesizing recommendations of the business community and keeping up with the settlement of the central and local authorities; conducting surveys of assessments of enterprises and business associations on the quality of responses to proposals of ministries, branches and localities; monitoring the act of creating a favorable business environment for local businesses; hosting or coordinating the organization of dialogue activities of government leaders, ministries, branches and local leaders with the business community such as: Vietnam Business Forum (VBF); Dialogue between the provincial leaders and businesses; Business dialogue with tax authorities - Customs at central and local levels ... Investigating, researching and announcing evaluation report on the implementation of Resolution 02 / NQ-CP and Resolution 35 / NQ-CP of the Government on improving business environment and business development.

- VCCI’s survey, research and publication of economic and business reports, namely as Report on  Annual Provincial Competitiveness, Report on  Vietnam's current national competitiveness in 2006-2018 period, orientations and solutions to 2030, vision to 2045 ; Report on the satisfaction level of enterprises with the implementation of administrative procedures in import and export in 2018; Report on Vietnam's opportunities and challenges in the process of international economic integration; Vietnam Business Annual Report 2019; Vietnam Enterprise Dynamics 2019…

- The political mobilization in the business community, honoring and rewarding businesses have continued to be strengthened with diverse activities to implement important policies of the Party and State, such as deploying programs and projects on implementing Resolution 09 / BCT-NQ on building and promoting the role of businessmen, holding a preliminary review of 5-year implementation of Conclusion 102-KL / TW dated September 22, 2014 of the XIth Politburo on the Mass Association; actively mobilizing Business Associations and businesses participating to be members of the Central Council of Vietnam Business Associations, holding a conference to summarize 10 years of implementation of the campaign "Vietnamese people give priority to using Vietnamese goods" and proposed recommendations to strengthen mechanisms and policies to promote production and trading of Vietnamese goods; implementing the review and awarding the Vietnam Outstanding Entrepreneur Award 2019 - Thanh Giong Cup; organizing launch ceremony of the Program of evaluation and announcement of sustainable businesses in Vietnam in 2019.

- The VCCI has continued to affirm its role as the representative for employers by actively participating in the activities of the National Labor Relations Committee, the National Wages Council. The VCCI organized many direct and indirect consultations as well as consultations in various forms with a group of employers' experts nationwide from business associations, universities, research institutes, law firms to comment on the draft revised Labor Code. Besides, the VCCI and 6 Business Associations including the Vietnam Association of Seafood Exporters and Producers (VASEP), the Vietnam Textile and Apparel Association (VITAS), the Vietnam Leather and Footwear Association (LEFASO), the Japan Chamber of Commerce and Industry (JCCI), the Vietnam Electronics Industry Association (VEIA) and the American Chamber of Commerce in Vietnam (AmCham) for the first time agreed to sign a joint petition on five issues. If the proposal is amended in the draft Labor Code, it will have a positive impact on production activities of businesses. At the same time, the VCCI contributed opinions and views of the Employer on the consideration of accession to Convention No. 98 of the International Labor Organization of Vietnam; monitored and provided guidance for employers' councils at local business associations professional when participating in the tripartite mechanism.

However, the VCCI still encounters some difficulties such as performing the task without allocated resources, which was regarded as a biggest challenge. A number of large programs and projects to support businesses have been delayed due to a lack of financial support, and ineffective mechanism for privatizing resources.

5. Formulating and organizing the implementation of programs and projects to support the competitiveness of businesses and programs to improve the capacity of business associations.

5.1. Training activities and business development

In 2019, the VCCI organized 928 training and training courses for nearly 31,000 businesses in the country as well as abroad, typically in the countries: USA, Japan, Australia, New Zealand, France, Italy, Switzerland. At the same time, it provides information and advice to businesses as well as individuals who have requests on business registration issues, international law, product introduction, markets, partners, advocacy. in international trade ...

VCCI is also a pioneer and leader in promoting many start-up activities such as: Organizing the 2019 Entrepreneur Festival and launching the 2019 Startup Program; Deploying activities of Vietnam National Startup Network, connecting with Global Startup Network (GEN); Organizing the Fair of startup products in the Mekong Delta region with the participation of exhibitors and traders of 33 start-up products in 11 Mekong Delta provinces ...

Deploying many activities to support small and medium-sized enterprises (SMEs) such as: Consultation with the Government and ministries on the development of SME development policies; contributed 19 drafts and participated in the Drafting Board, the editorial team to build related documents and many other activities to support SMEs to improve competitiveness.

The VCCI is also at the forefront in supporting businesses for sustainable development. In 2019, VCCI has implemented a number of major activities to support businesses in sustainable development such as: Coordinating with the World Bank (WB) and relevant ministries to successfully organize the National Conference on Sustainable Development 2019 with the theme "For a decade of more sustainable development"; promoted the implementation of the National Action Plan (NAP) on the implementation of the 2030 Agenda for sustainable development, has encouraged the business community to adopt sustainable practices, ensuring that no one is left behind rear and prioritize access to the most inaccessible population groups, including children; coordinating with UNICEF to implement activities under the Project on the promotion of the children's rights in business (CRBP): developing a communication plan for the project in Vietnam, organizing the Business Forum “Sharing facts good practices on promoting children's rights in business ”; updating and adjusting the Set of Sustainable Enterprises Index (CSI) in 2019 and implement a pilot application of the Sustainable Enterprise Index for leather and footwear enterprises; coordinating with the Global Reporting Initiative (GRI) on cooperation to organize training on CSI and GRI for businesses ...

5.2. Supporting businesses in international integration

Supporting enterprises in free trade agreements: As a representative and focal point guiding the business community in international trade issues, especially is free trade agreements under Decision 06 / 2012 / QD-TTg of the Government’s Prime Minister, in 2019, the WTO Center and the VCCI Integration will continue to be the biggest hub of information and advice for businesses on WTO, CPTPP and important and new World Trade Agreements that Vietnam is being and will join. At the same time, the VCCI has continued supporting businesses in matters related to trade remedies: This is an area to support businesses in legal issues related to economic integration, especially the use of applying anti-dumping, anti-subsidy and safeguard measures in Vietnam to protect the interests of domestic industries against foreign imports.

The VCCI has continued to be the biggest hub of information and advice for businesses on the WTO and important trade agreements that Vietnam is involving. Organizing the implementation of 4 Researches on effective implementation of international commitments; compiling / editting and publishing 23 publications (reports, newsletters, business handbooks); organizing / participating in presenting VCCI's views at 26 seminars, conferences and 27 meetings and conferences on integration issues; consulting with the business community on international trade agreements such as CPTPP, RCEP, VPA / FLEGT, FTA agreements; implementing 46 Comments on integration issues. The VCCI's advocacy and integration activities in recent years, especially those related to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Trade Agreement. Vietnam - EU free trade (EVFTA) has received positive support and evaluation from the associations, businesses and relevant state agencies.

The VCCI has continued tmaintaining and promoting the activities of the Forum / Business Council such as Vietnam - EU, Vietnam - Latin America, Vietnam - India, Vietnam - China, Vietnam - Europe. Africa - Middle East ... on the basis that has been built in recent years, contributing to strengthen and expand cooperation between Vietnam business community and business community in the world in many fields such as: trade, investment, scientific, technical, tourism and cultural exchanges.

5.3. Capacity building activities for Business Associations

Continuing implementation of the operational capacity improvement for Business Associations, promoting cooperation with Business Associations (HHDN) to capture information and recommendations on the business situation of enterprises: Advising and supporting the supporting associations, especially is the provincial multi-sectoral, supporting associations, advising the leaders of local authorities to organize dialogue, criticism and policy-making programs; conducting surveys and assessments of the operations of business associations across the country and study to build a report on assessing the capacity of Vietnamese business associations; organizing working missions to survey, work and learn experiences abroad; honoring and promoting activities connecting with HDVs to promptly capture information and situation of HDVs and businesses; well done consultancy work, support the establishment of new business associations, associations and business clubs ...

In order to contribute to the formation of the National Succession Network, which demonstrates the goal of transferring business rights among generations of family businesses in Vietnam, the VCCI has announced the establishment and launch of a National Succession Network, under Central Council of Vietnam Business Associations. At the same time, the VCCI also announced the decision to change the name of the Vietnam Businessmen and Family Council into the Vietnam Family Business Council and the Decision to establish an Succession Club, under the Vietnam Family Business Council. . This activity not only creates a playground for the next generation but also aims to support the successive generation process in Vietnamese businesses.

6. Propagandizing businesses to say no to negative issues

VCCI has continued implementing Project 12 on Promoting the implementation of business integrity with activities such as:

- Deploying the plan to publish the research report on Application of internal control mechanisms and Code of Conduct(CoC) in Vietnamese businesses- Current situation and some recommendations. The scope of the study was conducted in two major cities, Hanoi and Ho Chi Minh, to assess the current status of businesses' compliance with business transactions through internal control mechanisms and Code of Conduct (CoC) in the context of amending the Anti-Corruption Law, which has expanded the scope of regulation to non-state sectors. The research report reflected the limitations, even ineffective sides in general management. Most of the cases of violations occurred as a result of weak internal control capacity and lack of transparency.

- Coordinating with the United Nations Development Program in Viet Nam (UNDP Viet Nam) to organize a consultation workshop with the parties to complete the drafting of the research report on "Application of internal control mechanisms and Code of Conduct in Vietnamese businesses, which is one of the key activities of the business and Government Integrity Initiative - GBII , carrying out 2 thematic articles on the importance of Internal Control and the application of Code of Conduct (CoC), which were published in Vietnam Business Forum Magazine and Vietnam Business Forum Magazine; Updating 05 articles on the website: kdlc.vn.

Above is the report on the implementation of VCCI's Resolution 35 in 2019.

Vietnam Chamber of Commerce and Industry respectfully reports.

C/C:

- Direction Committee for Enterprise Development and Innovation

-  The Ministry of Planning and Investment

- The Standing Committee (for report);

- Saved by Archives and Admin Dept. (for  synthetics)