To: THE GOVERNMENT’S PRIME MINISTER NGUYEN XUAN PHUC

The Chamber of Commerce and Industry of Vietnam (VCCI) is pleased to report on the implementation of the tasks assigned in the Resolution 35 / NQ-CP dated 16 May 2016 by the Government on supporting and developing enterprises to 2020 for April 2019, particularly is as follows:

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

Recommendations assemblage of businesses in April 2019

In April 2019, the VCCI made a statistic and had 90 new recommendations of businesses and business associations sent to 19 ministries, branches and localities (an increase of 65 recommendations compared to March 2019). As of the end of April 30, 2019, there were 13 recommendationsresponded, 1 recommendation withdrawn by a business and 76 recommendations were not yet responded. The number of recommendationsthat was not responded in the month was high due to the recommendations of businesses sent to the central authorities at the end of April 2019 were quite many, which led to the ministries, branches and localities were not yet answered. Therefore, the number of recommendations over deadline only accounted for about 30% (23 recommendations/76 recommendations), the rest wererecommendations still within the deadline for responses.

Details of the data and contents of the new recommendations were presented in Appendix 1, Appendix 2 attached to the report. The deadline for resolution of recommendations shall be calculated by the VCCI according to the deadline requested by the Government’sOffice at the dispatch to ministries, branches and localities.

The main contents in the recommendations of businesses and business associations mainly suggested guiding the provisions of law to implement. In addition, there were a number of recommendations on law development and some specific cases of businesses. Some main contents includedas follows:

- The Ministry of Finance received the most recommendations in the month with 25 recommendations, the contents of recommendations focused on guiding the implementation of the law in the matters: paying registration fees for the conversion of vehicle registration cars due to merging companies; regulations on accounting vouchers; calculating taxable turnover of real estate transfer activities; payment for partnership when implementing equipment supply contracts for investors; payment for partnership when implementing equipment supply contracts for investors; exemption of land rent for forestry companies; liquidation of assets of 100% foreign-invested businesses; payment of land rent and additional money for a commercial center construction project behind schedule; the application of 5% VAT rate for imported medical goods; The maximum time prescribed by the General Department of Customs must answer the results of inspection for businesses ... Some outstanding recommendations and the number of businessesrecommended a lot such as:

+ A number of businesses operating in the field of industry support reflected in the Dialogue on policy and tax administrative procedures, customs in 2018, the Ministry of Finance and the General Department of Taxation answered that investment projects in supporting industrial products made before January 1, 2015 were not entitled to corporate income tax incentives in the field of industrial products supporting the development priority according to regulations at the Law No. 71. Through exchanging with some other businesses in Japan Business Association in Vietnam as well as through the business information obtained from the community of investors in Vietnam operating in the field of industry Support from other countries (Vietnam, Korea, Taiwan, China), the General Taxation and a number of local Tax Departments also issued a number of documents to answer a number of businesses, which also showed the above opinion.

According to businesses, the above point of view of the Ministry of Finance, the General Department of Taxation seriously affected the interests of businesses that were investing in manufacturing in the field of CNHT in Vietnam in general in receiving the first priority ofthe Government of Vietnam. This view was completely inconsistent with the regulations on investment incentive guarantee and tax in investment and tax legal documents. Therefore, businesses proposed to the government’s Prime Minister and the Government to make clear conclusions about the view of the Ministry of Finance stated at the Conference to support businesses.

+ Some businesses operating in the wood processing industry proposed to review the proposed increase of export duty on wood chips from 2% to 5% in the draft Amendment Decree No. 125 / 2017 / ND-CP. The businesses said that the impact of increasing wood chip export tax will affect investment in afforestation, affecting the completion of forest cover targets from 41.6% to 45% according to the Decision No. 419 / QD-TTG dated April 5, 2017 on approving the national program on sustainable management of forest resources by 2030 of the Government’s Prime Minister.

+ Vietnam Vinafarm Joint Stock Company reflected the State Reserve Department of Nghe Tinh region to open a bidding package of 16,000 tons of rice imported into the national reserve. The business repeatedly contacted 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 bidding documents. Businesses believed that there were signs of the "group benefits" phenomenon in selling bidding documents, expressed through non-transparent and deliberate methods, making it difficult for businesses to approach.

- Ministry of Planning and Investment received 23 recommendations of businesses, suggested to guide the implementation of policies and laws, including 9/23 proposing guidance on bidding law for the following contents: implementation selecting contractors for construction and installation bidding packages; participating in bidding packages of investment projects with state budget sources; applied the form of contractor selection; submitted bids online; practice certificates for bidding activities under the Circular 04/2014 / TT-BKHDT dated January 25, 2014 and some problems of businesses when participating in specific bidding packages in Nghe An and Bac Giang Provinces.

Some businesses suggested guiding the implementation of other contents including: Making investment projects to purchase radio and television equipment systems; problems in the implementation of the Investment Law and related Decrees; guiding foreign investors in setting up companies with 100% foreign investment capital to set up medical equipment establishments of types B, C and D; transfer of the Company's capital to foreign investors; guiding the application of Article 162 of the Enterprise Law2014; problems when transferring capital contribution of the company to Vietnamese investors; allocate annual public investment capital for projects approved for investment policies, but  there were no investment decisions yet; applying the  Decree 57/2018 / ND-CP on supporting investment in agricultural projects.

- The Ministry of Construction received 9 recommendations from businesses that proposed to guide the implementation of the law on contents: problems when establishing the Construction Investment Management Board; problems related to construction investment activities; problems in the acceptance of the results of maintenance of railway repair works; handling of tender invitation volumes lacking in bidding to package contracts; and a number of other contents including the handling of the volume of bids that lacked the settlement of construction works, the evaluation of construction activity capacities.

- The Ministry of Natural Resources and Environment received 6 recommendations of businesses on contents: Granting ownership certificate for office area; procedures for transfer of land use rights to businesses; problems related to the right of land leasing investors to pay a lump sum amount, exemption of land rent for a number of years; procedures for registering ownership of assets attached to land; problems when paying royalties according to actual exploitation output; problems when implementing cemetery project investment.

- The Ministry of Justice received a number of recommendations which highlighted the recommendations of the Minh Tuan Co., Ltd. in Quang Ngai Province, reflecting the enforcement of the Judgment Execution of Son Tinh District, Quang Ngai Province. Enforcement and distrait of assets which are not collateral, nor included in the judgment of the court and the sale of assets of the Company while the Company is complaining about the price proposed by the Company but not be resolved .- In the field of labor, businesses proposed to guide the implementation of the law on the following contents: unilaterally terminating labor contracts with employees who did not have enough working health; implementing regulations related to salary and personal income tax policies for employees; understanding the rules of overtime and shift...

- Businesses also proposed some contents under the responsibility of the Ministry of Industry and Trade, the Ministry of Health, the State Bank of Vietnam; the Ministry of Home Affair; the Ministry of Public Security; the Ministry of Agriculture and Rural Development such as: problems of foreign invested businesses in importing lubricating oil; procedures for establishing representative offices for traders from Iran; quota for importing sugar from Laos to Vietnam; answering about drug sale right of drug manufacturers to medical examination and treatment establishments; problems related to the implementation of the provisions of the Decree No. 155/2018 / ND-CP dated November 12, 2018 of the Government; procedures for issuing certificates of establishments eligible for food safety conditions in case there was no business registration in the business area; classification of medical equipment; guiding the limit of capital loan from businesses with 100% foreign investment capital; problems related to foreign exchange management; procedure for granting temporary residence card for foreign workers ...

- Recommendations sent by businesses to major localities suggesting to solve specific difficulties faced by businesses in production and business activities such as problems in implementing investment projects and building stations. Vietnamese - German Universe incarnation at Thung Lang, Nam Son Ward. Tam Diep Town, Ninh Binh Province; addressing benefits and interests for businesses from the exploitation, salvaging, gathering all and consumption of forest products at Ta Thiet and Binh Phuoc Protection Forest Management Boards; difficulties and problems when registering business information changes in Hochiminh City; problems with deducting land rent from payable land use levies of Nam Thang Long, Hanoi urban area project...

2. The situation of responding recommendations of ministries, branches and localities

In April 2019, the VCCI received 17 documents to answer business recommendations of 9 ministries, branches and localities (reducing 3 documents compared to March 2019). These documents have been fully posted by the VCCI on the VCCI’s Website as stipulated in Resolution 35. (Detailed in Appendix 3 attached to the report)

In general, ministries and agencies responded to businesses' requests quite promptly, and the number of recommendations for overdue replies was low: The Ministry of Planning and Investment and theMinistry of Finance. Some ministries and agencies responded quite slowly to recommendations such as: the Ministry of Health; the Ministry of Labor, War Invalids and Social Affairs; the Ministry of Natural Resources and Environment...

Through monitoring of the VCCI, from January 1, 2019 to April 30, 2019, there were 107 recommendations of businesses and business associations that were notresponded by ministries, branches and localities. Many recommendationswere transferred from the Government’s Office and the VCCI since the beginning of 2019 but they were not yet resolved. Ministries and agencies had many unanswered recommendations including: The Ministry of Finance 28 recommendations; the Ministry of Planning and Investment 15 recommendations; the Ministry of Natural Resources and Environment: 10 recommendations; the Ministry of Construction: 8 recommendations; the Ministry of Health: 9 recommendations; the Ministry of Labor, Invalids and Social Affairs: 7 recommendations; the Ministry of Industry and Trade: 5 recommendations.... For localities, there were 7 provinces and cities directly under the central government that not yet responded to recommendations of businesses in Ho Chi Minh City, Hanoi, Lao Cai, Quang Ngai, Bac Giang; Ninh Binh and Binh Phuoc Provinces.

Details of unresponded recommendations and handling responsibilities of ministries, sectors and localities were presented in Appendix 1, Appendix 2 and Appendix 4 attached to the report.

We would like to propose the Government’s Office to continue urging ministries, branches and localities to give a complete answer to the proposals of enterprises.

IMPLEMENTATION OF THE RESOLUTION 35 / NQ-CP OF THE VCCI

In April 2019, the VCCI deployed the assigned tasks as follows:

Implemented activities to contribute to administrative reform, facilitated businesses; created a favorable environment to support start-up businesses and innovative businesses; ensured business rights, equal rights to access business resources and business opportunities; reduced business costs for businesses and protected legitimate rights and interests of businesses:

- The VCCI completed comments on draft legal documents: The Decree amended the Import and Export Tariff; The Decree replaced the Decree 86/2014 / ND-CP on business and transportation business conditions by cars; the Circular on buying, selling and handling bad debts of asset management companies of Vietnamese credit institutions; the Circular regulating safety management of dams, hydropower reservoirs ... and commenting on many other legal documents of ministries and branches.

- The President of VCCI attended the meeting between the Presidium of the Vietnam Fatherland Front Central Committee and General Secretary and State President Nguyen Phu Trong by Mr. Tran Thanh Man, the Secretary of the Party Central Committee, the Chairman of the Party Committee of The Vietnam Fatherland Front Central Committee was the head of the delegation. At the meeting, representing the Vietnamese business community, the VCCI President Vu Tien Loc reported to the General Secretary on the positive feeling of the business community before the positive changes of anti-corruption work, negatively and the reform of administrative procedures contributed to significantly improving the investment environment, creating more and more favorable conditions for production and business activities. As a companion, leading the national business community, the VCCI was committed to continue to promote its functions and duties in national construction, striving to achieve economic growth targets.

- The president ofthe VCCI participated in the working group of the Government’s Prime Minister to inspect 5 Ministries (the Ministries of Agriculture and Rural Development, Finance, Health, Natural Resources and Environment, Science and Technology) on the regulations that were causing difficulties and obstacles for production and business activities. As noted by the Task Force and summarizing business proposals of the VCCI, the ministries have made efforts to reform and submit to the Government and the Government’s Prime Minister for promulgating many documents to solve difficulties and obstacles for enterprises.However,there were still some contents in some documents that make it difficult and embarrassing for businesses to implement the law. Therefore, reforms needed to be more focused and be realnext times.

- Coordinated with the Central Institute for Economic Management (CIEM) to organize the Seminar "Study the legal framework for business households under the Enterprise Law" in Hanoi with the lead of the VCCI President Vu Tien Loc and leadership of CIEM and the attendance of nearly 100 delegates representing businesses, associations, experts, television,and press. Speaking at the seminar, representatives of the VCCI affirmed that the draft has not shown the fundamental changes in types of businesses, seals, legal representatives, shareholder regulations ... administrative costs and expenses. Capital is still high, pushing many businesses into losses and bankruptcy. Moreover, the draft of revised law does not create simple and favorable conditions for individual business households to develop into businesses. The point of view of the VCCI is to adjust the law to keep abreast of the operation of business households and management needs of state agencies in order to create conditions for business households to develop more and at the same time to link with the target. Developing the number of businesses together with operational efficiency. Therefore, the draft amendments and supplements to a number of articles of the Enterprise Law need to have basic and breakthrough adjustments, creating maximum favorable conditions for more than 5 million individual business households, small and super small businesses, promoting potential and development.

- Coordinated with Quang Ninh Provincial People's Committee to organize the Northern Coastal Economic Forum in 2019 in Ho Chi Minh City, Uong Bi and Quang Ninh Province. With the aim of strengthening linkages in economic development in the northern coastal region, including the provinces / cities of Hai Phong, Quang Ninh, Thai Binh, Hai Duong, Hung Yen, and Forum are opportunities for localities to introduce on economic development strategy, investment attraction orientation, is the basis for provinces and cities in the region to connect, cooperate, create a common and breakthrough strength for regional economic development. Besides, the expert of assessing provincial competitiveness index (PCI) of the VCCI made many comments and PCI assessments in the provinces in the region, proposed some orientations and solutions to improve the PCI index, attract domestic and foreign investment into the region in the coming time. At the same time, representatives of provincial / city leaders shared many good local experiences in improving the PCI. On this occasion, the President of the VCCI awarded certificates of merit to organizations, associations and enterprises with outstanding achievements in 2018.

- Leaders of the VCCI and professional units participated in activities of developing laws and policy comments such as: Meeting the Editorial Team Project "Building a set of indicators on the development of socialist-oriented market economy" at the Central Economic Committee; the Meeting of Steering Committee for Program on Occupational Safety and Health - implementation plan 2019; Join the survey team to implement the Directive 22-CT / TW of the Secretariat and survey businesses within the framework of the National Wage Council in Dong Nai and Ho Chi Minh City. Participated in the local survey team on the implementation of the Directive No. 22-CT / TW at Canon and Toto Hanoi Company; attended a survey meeting on the implementation of the Directive No. 22-CT / TW in Hanoi City Party Committee; Attending the Expert Forum in Hanoion "Sharing the situation of sexual harassment at work and proposals, recommendation improving this issue in the labor law system in Vietnam"; attended the Seminar on "Regulations of labor law and participation of enterprises in vocational education" in Ho Chi Minh City.

- Continued post-announcement activities to announce the Provincial Competitiveness Assessment Index (PCI) 2018: attended conferences and seminars and had PCI analysis and evaluation papers in Quang Ninh, Tuyen Quang, Nam Dinh, Lam Dong localities; prepared for PCI 2018 diagnostic workshops for An Giang, Can Tho, Lam Dong, Quang Ngai, Vinh Long, Binh Phuoc, Soc Trang Provinces of and the Mekong Delta Conference; continued consulting, supporting and guiding work at the request of provinces and localities to implement activities to improve competitiveness and improve the business environment at the provincial level; implementing procedures for approving PCI project 2019-2022.

- Continued implementing the Action Program to promote the integrity of business: deployed the publication plan of the Research Report "Applying internal control mechanisms and CoC Code of Conduct in Vietnamese enterprises : Current situation and some recommendations ”; developed training materials on internal control (IC) and codes of conduct in anti-corruption (CoC); working with UNDP on funding proposals for the period April 2019 - 3/2020 within the framework of the regional project "Promoting a Fair Business Environment in ASEAN" implemented by UNDP; received the OECD delegation; developed a plan to implement training on business integrity: organized a training course on "effective and transparent corporate governance at joint stock companies" in Hanoi ...

- Continued to implement activities under the Circulatory Economy Program: Working online with Singapore Business Council for Sustainable Development; National Council meeting on sustainable development; established reference terms to study and apply the Sustainable Business Index (CSI) in enterprises; prepared a survey on the status of enterprises after 03 years of applying the CSI Index; continued research activities to build secondary materials market in the paper and plastic industry; organized a Seminar on "Promoting the implementation of recirculating economic models in Vietnam" in Hanoi to share the State's policies on management and support for recycling and re-processing of waste and economic resources. International experience in the implementation of recirculating economic models and the launch of the Circulating Economic Working Group

Implementing trade and investment promotion activities, support programs and projects to improving competitiveness of enterprises and business associations:

- Organized a delegation of 50 Vietnamese businesses headed by the President of the VCCI accompanying the Government’s Prime Minister Nguyen Xuan Phuc to pay official visits to Romania and the Czech Republic from April 14-18, 2019. Businesses participating in the movement in the fields of: textile, finance - investment, general trade, warehousing, services and medical equipment, import and export, materials, electrical and goods equipment consumption, tourism, investment, construction and infrastructure development, labor export ... have been cooperating with Romanian and Czech partners or have the potential to develop cooperative relations with these countries.

In the framework of the trip, the VCCI cooperated with the Romanian Chamber of Commerce and Industry and the Czech Federation of Industry & Transport to organize the Vietnam-Romania and Vietnam-Czech Business Forum, attracted more than 200 businesses andlocal businesses to attend and share about the investment and business environment, the potential for developing cooperative relations and business experience in each country. The Vietnam Government’s Prime Minister, the Government’s Deputy Prime Minister of Romania and the Government’s Prime Minister of the Czech Republic attended and delivered a speech at the Forums. Economic, trade and investment relations between Vietnam and the two countries were still low, there were many places to exploit. Some areas could promote cooperation such as: export of skilled labor from Vietnam, technical exchange and cooperation in the fields of high technology, design consulting services, tourism and vacation services, nutrition, import and export of food, mineral exploitation and processing ... At the forums, there were 10 cooperation agreements signed between Vietnamese, Czech and Romanian businesses. Also in misery of the forums, the VCCI signed a cooperation agreement with the Czech Federation of Industry and Transport on promoting business cooperation, consulting, information exchange and especially related to content of promotion of EVFTA agreement in the business community; signed a cooperation agreement with the Romanian Chamber of Commerce and Industry on business cooperation promotion programs, technical assistance, information exchange, business training consultancy...

- Coordinated in organizing and co-chairing the Roundtable Conference of Vietnam - Netherlands CEO in Hanoi on the official and working visit of the Dutch’s Prime Minister Mark Rutte. The seminar was attended and directed by the Government’s Deputy Prime Minister Vuong Dinh Hue, the Dutch’s Prime Minister and enterprises of the two countries. The Netherlands was currently the largest European investor in Vietnam with the presence of many large corporations such as Heineken, Unilever, Shell ... The two countries also had many similarities as the potential of marine economy, with plains. Delta, is facing many difficulties from climate change, opening up many cooperation opportunities for businesses on both sides. Also in the framework of the visit, VCCI cooperated with Dutch Master Gender Partnership Program (DECP) to hold a seminar on "Empowering women and business opportunities in Vietnam" with the participation of entrepreneurs Typical women of the two countries, representatives of the Netherlands Embassy in Vietnam and Chairman of the Dutch Federation of Industry and Owners (VNO-NCW). At the seminar, many initiatives were proposed to support female entrepreneurs of the two countries to connect their businesses, expanded markets and increased women's power in production and business activities in the two countries.

- The president of VCCI attended and co-chaired the discussion session at CEO Forum 2019 with the topic "renovation and innovation enterprises: Breaking from thinking to action" took place in Hanoi on April 5, 2019. At the Forum, participants participated in discussions to analyze the inevitable trend and value of innovation and creativity for economic growth and competitiveness of businesses, sharing and exchanging many practical experience of innovation and creativity in enterprises in Vietnam as well as in the world.

- Organized 58 training courses for 3074 businesses on topics related to planning and performance evaluation, contract drafting skills and dispute resolution, financial management to improve capacity governance and access to financial resources for businesses...

- Organized activities to support businesses to promote trade, investment, support enterprises to improve management and international integration skills such as a Workshop on "Meeting Vietnamese enterprises - Russian Federation" in Ha Noi; a Seminar on "Promoting Vietnam-Nigeria trade and investment" in Hanoi and Ho Chi Minh City; a Meeting with Vietnamese - Oman enterprises in Hanoi; a Workshop on "Tourism Quang Ninh - Reaching heritage" held in Ho Chi Minh and Ha LongCities; a Workshop on "Australian market opportunities from CPTPP" in Hanoi; a Meeting Vietnamese - Singaporean enterprises in Da Nang; Vietnam-Korea trade exchange in Ho Chi Minh City; a Workshop on "Vietnam - Malaysia Business Opportunities in the Automotive Industry" in Hanoi; organized the Workshop on "Building next generation leaders: Lessons learned from successful family businesses in the world" in Hanoi; a Workshop "Vietnamese - American Trade: New occasion and opportunities" in Ho Chi Minh City; a Workshop on "Textile industry in the integration trend - Disseminating CPTPP rules of origin and ways to participate REX mechanism" in Hanoi; a Seminar on "Business Alliance on CSR - Synergies for wood and fishery industry" in Ho Chi Minh City;a Seminar on "Automation trend and e-commerce - Future career in Logistics industry" in Ho Chi Minh City; a Workshop on "Applying preferential tariffs, methods to deal with non-tariff barriers and using market analysis tools" in Binh Thuan; a Seminar on "Regulations of labor law and participation of enterprises in vocational education" in Ho Chi Minh City; a Workshop on "Skills of law application in the implementation of policies on dialogue and negotiation in the process of signing, using and terminating labor contracts and expected amendments" in Hanoi; a Workshop on "BB - BEST FOR BEST - Multitasking distribution channel: The optimal solution for Vietnamese manufacturing enterprises" in Ho Chi Minh City; a Training workshop on "Information - Important tool for building business strategy of enterprises in the industrial age 4.0 and digital skills training" in Ho Chi Minh City; a Workshop on "Starting a business with WeCreate Vietnam" in Can Tho ...

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