TO: THE GOVERNMENT’S PRIME MINISTER NGUYEN XUAN PHUC

         The Chamber of Commerce and Industry of Vietnam (VCCI) is pleased to report on the performance of tasks assigned in the Resolution 35 / NQ-CP dated 16 May 2016 by the Prime Minister  on enterprise development policy to 2020, in January 2020 as follows:

I. THE RESULTS OF THE MINISTRIES, BRANCHES AND LOCALITIES’ AGGREGRATING AND RESOLVING RECOMMENDATIONS OF BUSINESSES:

1. The results of aggregating and resolving recommendations of businesses in January, 2020:

According to statistical data of VCCI, in January, 46 new recommendations from enterprises and business associations were sent to 17 ministries, branches and localities. By the end of January 31, 2020, 4 recommendations were responded, 42 recommendations remained unanswered. The number of recommendations exceeding the period of response was 8, accounting for 19% of the total, 34 recommendations were in the waiting list for response.

Details of data and contents of new recommendations are presented in Appendix 1 and Appendix 2 attached to the report.

The petitions of enterprises and business associations mainly requested guidance on implementation of the provisions of law. There are also a number of recommendations on legislation and some specific cases of businesses. Some key contents included the following:

- Of all the ministries, The Ministry of Finance received the highest number of recommendations from the enterprises with 16 petitions.  The basic contents of the recommendations included:

 + Guidance or request for resolving difficulties relating to tax and customs: conditions to be qualified as an organization providing e-invoice service, determining  violations against the Law on Tax Administration, input VAT considered as deductible expenses for CIT purposes comprising the imports of machinery and equipment, guidance on tax refund of investment projects,  quality control of tubular motor code number 84253100, results of classification analysis for WL-220 WASH printer cleaning fluid, comments on the analysis results together with HS Code of Customs Inspection Department 3, reflecting the case that the customs refused to accept  enterprise's self-declaration of products; ...

 + Request for guidance on the implementation of the law on some contents: guidance on products and materials serving internal production and consumption of enterprises; guidance on IPO to existing shareholders; guidance on investment procedures for Japanese investors trading in prize-winning electronic games, ...

- The Ministry of Planning and Investment received 8 petitions from enterprises. The contents of the recommendations are as follows: the time limit for charter capital of 100% foreign-invested enterprises, guidance on the process of online selection of contractors, guidance on the transfer of investment projects; payment of general items in lump-sum contracts, reflecting the lack of uniformity and agreement about the requirements for preparing the application for  business registration, guidance on naming the enterprises, reflecting the fact that the Business Registration Management Agency  has not updated the administrative boundary on the national business registration system,…

- Ministry of Natural Resources and Environment receives 4 petitions from businesses. The contents of recommendations included: guidance on granting foreign-invested enterprises certificates of land use rights, ownership of houses and other assets attached to the land to enterprises. foreign invested capital; solving problems relating to refund of the fees for obtaining mineral exploration license, reflecting the project granted an 11-year investment certificate was not implemented due to problems in the allocation of material areas in the project planning area ...

+ Chi Linh Building Materials and House Development JSC reflected that the official dispatch of the People's Committee of Hai Duong province regarding the mineral exploitation project in Zone I, Truc Thon clay mine, Hai Duong Province has not been responded for nearly 7 months. As a result, the People's Committee of Hai Duong province has not granted the company to implement the project.

- The Ministry of Labor- Invalids and Social Affairs received 2 petitions from enterprises. The contents of the recommendations are requests for guiding implementation of the law on announcing the conformity of imported elevators and escalators at Departments of Labor-Invalids and Social Affairs of provinces and cities, short-term technology transfer training programs, ...

- The Ministry of Construction received 2 recommendations from enterprises. The contents of the recommendations are requests for guiding the implementation of the law on: final settlement of lump sum contracts, consultation of management of construction investment project....

- People's Committee of Hai Phong city received 2 recommendations from the enterprises. The contents of the recommendations included: requests for resolving the procedures for changing the company seals, requests for adjustment of project implementation; ...

- Other ministries- The Ministry of Public Security, the Ministry of Science and Technology, the Ministry of Industry and Trade, the Ministry of Health,  the Ministry of Agriculture and Rural Development; the Ministry of Transport, The State Bank of Vietnam and People's Committee of Da Nang, Hanoi, Binh Dinh, Vinh Long, and Phu Tho provinces each received a petition from the enterprise. The contents of the recommendations included: Requests for guiding periodic propaganda and training fee for FPF, guidelines for franchising labels and product announcements, guiding the notification of the implementation of sales promotion programs, requests for granting   certificates of export goods under the management of the Ministry of Health's, requests for importing onions from Egypt, handling the issuance of taxi badges for businesses that established in rural areas operating in Hanoi, guiding the classification of works construction of package 10 at Phu Bai International Airport, problems concerning  the time of land use of Blooming Tower Da Nang project, in Hai Chau District, Da Nang city, guiding procedures for enterprise dissolution, requesting Phu Tho Provincial People's Committee to resolve the problem relating to the land lease in accordance with current law, ensuring the lawful rights and interests of investors; reflecting the problems hindering the process of applying for construction permit of enterprises in Phu Tho province…

2. The implementation of answering recommendations of ministries, branches and localities

2.1. The implementation of answering recommendations of ministries, branches and localities in January, 2020:

In January 2020, VCCI received 19 documents of 7 ministries, branches and localities in response to recommendations submitted by businesses (a decrease of 45 documents compared to December, 2019). The number of response documents decreased sharply due to Tet holiday occurring in January, 2020. These documents were posted on VCCI's website as specified in Resolution 35. (Details are presented in appendix 3 attached to the report).

The implementation of answering recommendations of ministries, branches and localities in January, 2020 is presented in the table below:

The Ministry of Planning and Investment and the Ministry of Finance are the units that actively responded to recommendations of businesses, although the number of petitions received is always much higher than that of other ministries and branches. However, those documents were mainly in response to unresolved recommendations of 2019.  A large numbers of recommendations submitted to these two ministries in January remained unanswered. A number of ministries and branches responded slowly to petitions such as the Ministry of Labor, Invalids and Social Affairs, the Ministry of Natural Resources and Environment, the Ministry of Social security, the State bank of Viet Nam, People's Committee of Ho Chi Minh City and Hanoi. The Ministry of Labor, Invalids and Social Affairs and the Ministry of Natural Resources and Environment need to take drastic actions to promptly solve the difficulties and problems of enterprises. The response time limit was set by the Government’s Office in the official dispatch to ministries, branches and localities.

2.2. Recommendations remained unanswered in 2019:

Through monitoring by the VCCI, from January 1, 2019 to the end of December 31, 2019, 234 recommendations of enterprises and business associations remained unanswered by ministries, branches and localities. Some petitions have been backlog since the beginning of the year but have not yet been resolved.

Details of unanswered proposals and responsibilities of ministries, branches and localities are presented in Appendices 1, 2 and 4 attached to the report.

We recommend the Government’s Office to continue urging ministries, branches and localities, namely as the Ministry of Labor, Invalids and Social Affairs, the Ministry of Social Security, the Ministry of Natural Resources and Environment; People's Committee of Ho Chi Minh City and Hanoi to give a complete answer to the recommendations of enterprises, especially those outstanding from the beginning of the year.

II. RESULTS OF VCCI’S IMPLEMENTATION OF RESOLUTION 35/NQ-CP

In January, 2020, VCCI deployed the assigned tasks as follows:

1. Implementing activities to contribute to administrative reform,  facilitating businesses, creating a favorable environment to support start-up businesses and innovative businesses, ensuring business rights, equal rights to access business resources and business opportunities, reducing business costs for businesses and protect legitimate rights and interests of businesses:

Coordinating with relevant ministries, branches, agencies and international organizations to organize forums, seminars and conferences, etc. to propose and review policies and laws with the Party and State related to businesses, entrepreneurs, and socio-economic development. Some outstanding activities included:

+ Chairman of VCCI, Mr Vu Tien Loc was elected as rotating chairman of the East Asia National Business Council (EABC) in 2020. The EABC comprises leaders representing business community from 13 East Asia countries, Chambers of Commerce, Business Associations, trade promotion agencies from ASEAN countries and ASEAN partners.

At the 46th EABC meeting, Chairman of VCCI announced the EABC theme in 2020 as "Jointly Building a Prosperous and Inclusive Future for East Asia", focusing on three main groups of issues including: (i) Promote business-related economic and trade policies to ensure regional integration and sustainable growth for East Asia through the realization of the ASEAN Common Economic Community (AEC) and the Regional comprehensive economic partnership (RCEP); (ii) Create favorable conditions for micro, small and medium enterprises (MSMEs) and women-owned businesses in East Asia countries to access capital, international markets and successfully participate in the global chain values ​​through cooperation with EABC partners; (iii) Optimize human resources potential, promote startups and digitize innovation for an inclusive digital future for East Asia. At the same time, VCCI assumed the chairmanship of ASEAN Business Advisory Council (ASEAN BAC) 2020 from Thailand.

+ Coordinating to organize the Vietnam Business Forum (VBF) at the end of 2019 with the theme "Roles and responsibilities of FDI community in rapid and sustainable development". Attending and chairing the Forum were Deputy Prime Minister Trinh Dinh Dung, Minister of Planning and Investment Nguyen Chi Dung and representatives of FDI business associations in Vietnam. Speaking at the Forum, Chairman of VCCI stated that the domestic business and investment environment still has space and room for further reforms in the coming time. Contributing to the overall effort to increase the motivation of economic development through improving the business environment, VCCI has conducted many studies, analysis and reports to the Prime Minister on 25 points of conflict, overlap between laws on investment and business. VCCI expected that if the current barriers are removed, it will contribute strongly to the economic growth of Vietnam in 2020. Representatives of FDI Business Association participated in the Forum with many specific recommendations focusing on continuing to accelerate the simplification of administrative procedures in order to maximum support enterprises, implement e-government and transfer some public services, etc. VBF is an annual dialogue mechanism between businesses and representatives of Government agencies revolving around recommendations and proposals that VBF has sent to ministries and branches earlier.

+ Contributing opinions to some draft legal documents such as the decree amending the MFN tariff according to the proposal of the United States, the decree issuing the regulations of identification and e-authentication; the decree stipulating performing arts activities, circular providing for regulation conformity certification and announcement for information and communication technology products and goods, preparing a report on free trade agreements (FTAs) for the National Assembly Supervisory Delegation, review of the impact of RCEP without India on Vietnam ... (Details can be updated at: http://vibonline.com.vn/tim-kiem-y-kien-vcci).

+ Joining the Editorial Team of the Project "Building a set of criteria for a socialist-oriented market economy in our country" of the Central Economic Committee. VCCI presides over the implementation of 2 topics: (1) "The situation and issues raised about business freedom and private economic development in our country over 30 years of renovation"; (2) "Proposing the framework criteria on business freedom and private economic development in our country until 2030, vision to 2045 and key solutions groups to apply this framework criterion into practical development of the country", working with ILO experts on assessing issues related to legal aspects and social insurance policies ...

+ Completing activities according to PCI Plan 2019: publishing PCI Newsletter in the fourth quarter of 2019; collaborating with the Asia Foundation (TAF) to conduct the study "Overall assessment of enterprise resilience" integrated into the PCI survey; continue to coordinate with the Ministry of Construction to assess construction licensing procedures in localities integrated in the PCI survey ...

2. Implementing trade and investment promotion activities, investing on programs and projects to support the competitiveness of businesses and business associations:

Organizing the launching ceremony of the National Start-up Program 2020 in Hanoi. This is the 18th year that VCCI has launched the National Startup Program, which aims to create opportunities for young people and the startup community across the country to build startup projects of practical value, uphold the spirit of entrepreneurship in the youth, promoting the leading role of businesses and entrepreneurs in the cause of economic development of the country. This year's program was organized with a variety of activities such as investment connection presentations, the launch of the Innovation Advisory Board, the award for outstanding start-up projects in 2019 and citing formally the the exemplary startup ...

- Reviewing the implementation of the Project's 2019 Plan "Enhancing competitiveness for businesses through establishing harmonious relationships between businesses and employees to create an effective working environment in the period. 2016 - 2020 ”.

- Completing the publication of the Handbook on CPTPP and other industries; completing the Newsletter "Business and free trade" No. 17 + 18 in 2019.

- Reviewing the implementation of the Project Plan 2019 "Enhancing work skills, starting a business for young people and connecting with SMEs" (Youth Spark); Project "Supporting women-owned SMEs to renovate business management methods on the basis of maximizing resources to improve competitiveness and integration"; Project "Enhancing the voice of enterprises in economic restructuring"; The project "Enhancing the competitiveness of SMEs participating in global value chains".

Vietnam Chamber of Commerce and Industry respectfully reports to the Government.

C/C:

- As above;

- The Steering Committee;

- The Government’s Office (DMDN Department);

- Business Information Center(for posting on the  Website);

- Saved by Archives and Admin Dept (for synthetics)