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 businesses till 2020 as well as solving difficulties, obstacles and recommendations of businesses in February 2018 as follows:

I. RESPONDING TO BUSINESSES’ RECOMMENDATIONS ACCORDING TO THERESOLUTION No. 35 / NQ-CP OF MINISTRIES AND BRANCHES IN FEBRUARY 2018

1. Responding to aggregated recommendations by the Government’s Office

In February 2018, VCCI received 24 documents responding to businesses’ recommendations of ministries, branches and localities. These documents have been fully disclosed on the website of VCCI as stipulated in the Resolution 35. The responded documents  that VCCI received in February 2018 have contents related to particular fields as follows:

1.1. The Ministry of Finance

The Finance Ministry issued 6 official letters responding to the businesses’ recommendations or directed the local Customs Departments to settle the businesses ‘recommendations with the following contents: Guiding the operation of the branch of the audit company; on tax administration for businesses which have occurred associated transactions; adjusted land unit prices; handled results of classification of plastic products (Eproxy Resin) and Eproxy Resin (Eproxy Resin) and additive combined with Eproxy Resin as well as the tax treatment based on classification results. settled recommendations on non-collection of tax on zinc sheets printed in the printing industry; on the state investment credit policy and the loan policy for shipbuilding.

1.2. The Ministry of Planning and Investment

The Ministry of Planning and Investment (MPI) issued 8 documents responding to businesses’ recommendations with majority content explaining the provisions of law on bidding (5/8 documents) such as selection of contractors in the first project conditions for individuals participating in bidding activities, contracts for the supply of similar goods, performance of contracts at fixed unit prices, key personnel in bidding dossiers ... Other contents to respond to enterprises are: Operation of branches belonging to private enterprises, investment in business lines for renting motor vehicles.

1.3. The Ministry of Transport

The Ministry of Transport issued 3 documents responding to the request of businesses with contents: The static height bridge over Van Uc’s river, enhancing the widespread and continuous inspection of the loading capacity of means of transport on the road, taking measures to resolutely force down load to be allowed to continue the journey; implementing 100% of non-stop road toll stations; arranging reasonable positions for toll booths; deploying "Information Center to support transport enterprises and customers"; proposing a determination that Uber-Grab was a transportation business of taxi, reducing regulatory requirements for traditional taxes; stopping the issuance of new contract vehicle badges to the means participating in the pilot program; promulgating regulations on identification of pilot vehicles; expanding Uber - Grab to provinces and cities are not in the place to allow the pilot ...

1.4. Science and technology:

The Ministry of Science and Technology issued two written replies to the enterprises' recommendations on the calculation of the net sale price of the technology transfer contract; Manufacture of equipment 4.0 in real conditions in Vietnam.

1.5. Some other ministries, branches and localities:

- The Labor Relations and Wage Department of the Ministry of Labor, War Invalids and Social Affairs shall respond to the enterprises' recommendations on the salary of workers at the limited liability company with 100% of charter capital owned by the State.

- The Food Safety Department of the Ministry of Health issued a written response to Huong Sen Viet Co., Ltd.'s responding to the recommendation on the issuance of certificates of eligibility for food safety.

- The People's Committee of Quang Nam Province responded to the recommendation of  the Long Trang Co., Ltd for payment of the volume of motorway to the center of Tra Linh Commune, Nam Tra My District.

- The Ministry of Agriculture and Rural Development issued a written response to the Nhat Viet Hi-tech Agriculture Company Limited's recommendation on conditions for conducting business of pilot services.

- The Ministry of Construction responded to Khanh Hoi Investment and Service Joint Stock Company's recommendation on the grant of a change from a construction work ownership certificate to a certificate of land use right and house ownership and other assets attached to the land.

1.6. Responded recommendations that VCCI aggregated and sent to the Government’sOffice:

In February 2018, VCCI received 3 written responses to 2 recommendations. The written responses to VCCI recommendations were posted on the VCCI website and conveyed to the business’recommendations as follows:

- An Official letter No. 726 / UBND-TCNS dated February 6, 2018 of the People's Committee of Hai Phong City responded to the recommendation of Duc Giang - Lao Cai Chemical Joint Stock Company for the cost of using seaport infrastructure. The VND Official Letter confirmed Hai Phong has adjusted the fee from VND 20,000 / ton reduced to 16,000 /ton equivalent to 20% reduction. (Recommendation 2, Annex 1, January 1, 2015 Report No. 0228 / PTM-VP dated 9 February, 2008 of the VCCI).

- An Official Letter No. 1283 / UBND-CN dated February 12, 2018 of the People's Committee of Dak Lak Province responded to the recommendation of Yen Binh Co., Ltd Dak Lak on exchange of clarification of some issues related to the Notice No. 14 / TB-UBND dated January 19, 2008 of the People's Committee of Dak Lak Province to resolve the Company's recommendation on irrationality in the decision to supplement the plan of cassava starch processing project in Krong Bong District of the People's Committee of Dak Lak Province. (Recommendation No.1, Appendix 1, November 2004 Report No. 3353 / PTM-VP dated December 14, 2017 of the VCCI).

- An Official Letter No. 987 / TCHQ-TXNK dated February 12, 2018 of the General Department of Customs responding to recommendations of the Vietnam Printing Association and some companies with the same content on non-arrears of tax on plates of zinc for the printing industry (Recommendation No.2, Appendix 1, Quarterly Report 4/2017 No. 0139A / PTM-VP dated January 23, 2004 of the VCCI).

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

- January 1, 2018, VCCI received 41 recommendations that the Government’s Office had received through the receiving and responding system to requests of businesses on the portal of the Government. By the end of February 28, 2018, there were 24 recommendations were received by ministries, sectors and localities. There were 17 unresponded recommendations (see attached list in Annex 2) in which, all recommendations  have been overdue.

- In February 2018, VCCI received 30 requests from businesses that the Government’s Office received through the system of receiving and responding to requests of businesses on the Government portal. By the end of February 28, 2018, there were 18 recommendations were received by ministries, sectors and localities. There were only 12 recommendations have not been answered. (list attached as Annex 3), in which, some of recommendations have been overdue.

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

In February 2018, VCCI carried out the assigned tasks as follows:

1. Carried out activities contributing to administrative reform, creating favorable conditions for businesses; creating a favorable environment to support start-up businesses, innovative businesses; ensuring business rights, equal access to resources and business opportunities of businesses; reducing business costs for businesses and protect the legitimate rights and interests of businesses:

- VCCI completed the comments and has continued to comment on drafts: The Urban Management Law; the Decree on electronic invoices; the Decree on business and conditions of transportation business by car; The Circular provides for the inspection of quality, technical safety and environmental protection of railway means and equipment; the Circular amending and supplementing the Circular No. 215/2013 / TT-BTC guiding the enforcement of tax administrative decisions. The Circular on information, instructions, equipment for customer service, the safety equipment on railways; the Circular guiding Decree 139/2017 / ND-CP sanctioning administrative violations in construction investment; the Circular No. 35/2016 / TT-BGTVR on the maximum price for road use services; the Decision of the Prime Minister on the structure of electricity retail tariffs.

- Coordinated with the Central Institute for Economic Management (CIEM) and the Food Safety Department (the Ministry of Health) and seven business associations to organize the dissemination conference of the Decree No. 15/2018 / ND-CP detailing the implementation of a number of articles of the Law on Food Safety. In comparison to the previous Decree No. 38/2012 / ND-CP, the Decree No. 15/2018 / ND-CP has created favorable conditions for businesses to register and publicize their products. Products temporarily imported for sale at duty-free shops; or imported products only for production, internal processing in the establishment. The method of inspection of imported products is much lower than that of the Decree No. 38, which examines only a maximum of 5% of the total import shipments within one year as randomly chosen by the customs office. In addition, the Decree No. 15/2018 / ND-CP also assigned businesses to take responsibility for the products they produce, to strengthen the post-inspection instead of the previous inspection. Initial small-scale production facilities, primary processing facilities, restaurants, food shops, etc. will not have to apply for a food safety eligibility certificate but are entitled to self-certification to publish and take responsibility. It is estimated that the implementation of Decree No. 15/2018 / ND-CP will help enterprises save 90% of time and effort in implementing administrative procedures. saving 10,000 working days, saving VND 10 billions. At the same time, this also helps to have lower the price of food and brings practical benefits for consumers.

- Continued to coordinate with localities to organize activities to promote the sharing of good practical experience in provincial economic management. At the same time, continuing to provide advisory, support and guidance services required by provinces and cities to carry out activities to improve competitiveness and improve the provincial business environment.

2. Carrying out trade and investment promotion activities as well as programs and projectsfor supporting raising of the competitiveness of businesses and business associations:

- In order to provide opportunities for Vietnamese and Korean businesses which are interested in and working in the field of building and developing the power industry, renewable energy has more information on power development planning, investment in power generation, transmission and distribution networks, planning and status of renewable energy development in Korea and Vietnam ..., VCCI in cooperation with the Korea Trade and Investment Promotion Agency (KOTRA) organized the "Vietnam-South Korea Electricity and Renewable Energy Forum". With the goal of raising the proportion of electricity produced from renewable energy to 32% by 2030 and 43% by 2050, Vietnam now has about 50 wind power projects, more than 100 solar power projects and many projects. Other biomass energy development is being studied for development. This is a good condition for the businesses of Vietnam and Korea to continue to promote cooperation and investment in long-term projects, contributing positively to the prosperity of both countries. Meanwhile, Korea is considered one of the pioneers in the world in the development of smart grid, efficient management of electricity use, saving, safety ... So, Vietnam and South Korea have potentials to enhance long-term cooperation in the areas of energy, renewable energy and smart grid. South Korean’s businesses were listened policies mechanism of Vietnam to encourage the development of renewable energy such as investment credit, import tax, export tax, corporate income tax. , exemptions from land use fees, land rent for renewable energy projects, financial support for scientific and technological research activities on energy ... Also at the forum, some agreements in investment cooperation, production and business of Vietnam and Korea have been signed.

- Coordinated with the Embassy of the Netherlands held the "Trade Exchange Vietnam - Netherlands" in Ho Chi Minh City. There were 16 companies from the Netherlands which  operate in the areas of plastics recycling, dyeing, sportswear, urban planning and design, industrial waste water treatment and gas treatment ( biology), sustainable building materials for food and feed ... and a large number of Vietnamese enterprises seeking opportunities for cooperation with Dutch’s businesses. Currently, the Netherlands is not only the biggest trading partner of Vietnam in Europe but also the number one investor of Europe in Vietnam with the annual investment capital of over 8 USD billions. In particular, the Netherlands was the first country to establish a strategic partnership according to fields with Vietnam. The areas has been developed by the two countries, which are adaptation to climate change and water management; sustainable agriculture and food security. The Vietnamese and Dutch businesses who participated in the exchange had the opportunity to meet and discuss the possibility of cooperation as a prerequisite for cooperation in investment, production and business.

- Organized six training courses for nearly 170 managers and professionals of businesses with the contents of: Basic and advanced corporate management; marketing; Vietnamese and international trade laws. At the same time, regularly provide information and advice (directly and through VCCI channels) to businesses and individuals who request business registration, international law, introduction of products, markets, partners

Summary difficulties and problems of enterprises:

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

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