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 February 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 February, 56 new recommendations from enterprises and business associations were sent to 21 ministries, branches and localities(an increase by 10 recommendations compared to January, 2020).  By 29th, February 2020, 17 recommendations were responded, 39 recommendations remained unanswered. The number of recommendations exceeding the period of response were21, which accounted for 53,8% of the total,18 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 recommendations 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:

- The Ministry of Finance received the highest number of recommendations from the enterprises with 13recommendations in February.The basic contents of the recommendations included requests for guiding or resolving difficulties and issues in the field of tax and customs:

The basic contents of the recommendations are almost recommended to guide or handle guiding the application of increasing the  prices of imported goods due to levying tariff, reflecting delays of procedures and delivery due to the change in sampling, HS codes and VAT on newly imported products not being presented clearly in current documents, guidance on the subcontractor using the list of tax-free goods registered by the investor,  guide the provisions of law related to corporate income tax and personal income tax, reflecting the quality of the operation of e-filing page, difficulties in customs declaration, implementation of customs procedures in the export of minerals ...

- The Ministry of Planning and Investment received 12 recommendations from enterprises. The contents of the recommendations included: definition of heavy and hazardous work in a carton packaging manufacturing company; requests for guidance on the specific cases, namely procedures for renting land outside the planning area, changing investors implementing the project or transferring investment project, signing contract and authorizing branch, implementing the provisions of investment registration certificate,  duration of leasing warehouse to implement investment projects,  procedures for granting foreign investors a permission to operate e-commerce activities, foreign investment incentive policy, registering business activity code 6420…

- The Ministry of Health received 5 recommendations from enterprises. The contents of the recommendations included:requests for guidance on the specific cases, namely theissuance of practice certificates to healthcare practitioners and operation licenses to healthcare facilities, positioning the water flossier in the nomenclature of medical equipment, procedures for registration of environmental protection plans in health facilities, registration of declaration of food additives; procedures of registration of product declaration ...

- The State Bank of Vietnam received 4 recommendations from businesses. The contents of the recommendations included: requests for guidelines for presenting the proof of source of money deposited into the foreigner’s account in Vietnam, finalizing bidding package in lump sum contract, guidance on the structure of external debt, the request for solutions to support enterprises facing pandemic Covid 19 difficulties.

- Hanoi People's Committee received 3 recommendations from enterprises. The contents of the recommendations included: requests for guidance on completing the procedure of house and land at 289 Pham Van Dong Street, proposals for adjustment of investment projects, reflecting the delay of returning the results of administrative procedures...

- Other ministries: The Ministry of Industry and Trade, The Ministry of Agriculture and Rural Development, The Ministry of Foreign Affairs, The Ministry of Construction each  received two recommendations from enterprises with the following contents: requests for guidance on food products that are not listed for safety inspection; dealing with conflict of laws in the trading licenses applicable to foreign investors in terms of e-commerce activities, recognition of papers and documents sent by foreign agencies, organizations and individuals to courts in Vietnam, the contract when winning the maintenance construction project, management of investment costs of work construction…

- Other ministries: The Ministry of Transport,The Ministry of Education and training, The Ministry of Labor, Invalids and Social Affairs, The People's Committees of Ho Chi Minh City, Hai Phong, Hanoi and Ba Ria - Vung Tau, Ninh Binh, Binh Duong, Tien Giang, Ben Tre and Long AnProvinces each received one petition of enterprises. The contents of the recommendations included: requests for extending the age limit and participants of the “ Eco-driving Honda fuel efficiency”, guiding the  application of the Law on Higher Education and the Law amending and supplementing a number of articles of the Law on Higher Education, proposing job titles,  and jobs which allows people from 15 to under 18 years of age to work overtime and work nightshift, procedures of signing land lease contracts and granting certificates for land-use rights, proposing a reduction of annual rental cost of land made by Doan Xa Port Joint Stock Companyin the period of 2020-2024, removing obstacles for enterprises when submitting application for changing business registration content, proposing to support enterprises that are leased land to implement pineapple and vegetable farming farm project in the direction of ecological technology in Tien Giang; reflecting the attitude of the departments in Ben Tre province in supporting businesses; ...

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

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

In February 2020, VCCI received 43 written responses to business proposals from 14 ministries, branches and localities (an increase of 24 documents compared to 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 February, 2020 is presented in the table below:

In February 2020, the Ministries of Agriculture and Rural Development, Industry and Trade, Foreign Affairs,Transport, Education and Training are the units that responded to petitions on time, and had no outstanding petitions. Although the number of recommendations submitted to theMinistry of Planning and Investment and the Ministry of Finance were lower compared to the figure for the previous months, the rate of unanswered recommendations was still high with 25/43 documents answered in February 2020, but mainly resolved the existed issues of 2019 and of January 2020. Through monitoring, in February and the first 2 months of 2020, the Ministry of Planning and Investment failed to respond the recommendations timely as in 2019. Other ministries and branches responded slowly to proposals, especially is the Ministry of Health, the People’s Ho Chi Minh City and Hanoi, etc. The Ministry of Health has not yet responded to any recommendations sent by the companies in February 2020 despite the expiry date. The deadline for resolving a petition is calculated by the VCCI according to the deadline requested by the Government’s Office in the official dispatch sent to ministries, branches and localities. 

2.2. Recommendations remained unanswered in 2019:

Through the monitoring of VCCI, from January 1, 2020 to the end of February 29, 2020, 67 recommendations of enterprises and business associations remained unanswered by ministries, branches and localities.

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 February, 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:

- The outbreak of Covid 19 greatly impacted on business operations, resulting in stagnant exported produce to China, the shortage of imported raw materials and supplies from China to meet up orders from manufacturing and processing industries, a downsize in the market of transportation, tourism and service, high unemployment rate, etc. Despite many efforts, it is difficult for small and medium-sized enterprisesto keep up and maintain production. The number of newly established enterprises witnessed a decrease while the number of businesses dissolutions increased considerably.  Facing this situation, VCCI has proposed to the Government a number of solutions:

+ In the long run, continue to vigorously restructure the economy, focus on exploiting the potential of the domestic market and diversifying the international market at the same time, reshape the value chains. Specifically, the campaign "Vietnamese people prioritize using domestic goods" and "Vietnamese goods conquer Vietnamese people" should be implemented in the community with new versions, appealing to all classes of people to participate. Strongly develop supporting industries, strengthen links, make the most of new markets opened from free trade agreements to expand supply channels and diversify markets, pay more attention to the elaboration and administration of national industrial policies, focus on Vietnam's industries and competitive advantages, select FDI investors capable of integrating and associating with the domestic business community, speed up the reform of the state-owned enterprises sector, put SOEs under market pressure.

This year, we have to deal with the pandemic and at the same time deploy new-generation free trade agreements and prepare for  the Party Congress at all levels, towards the Fourth Party Congress. XIII. For that reasons, VCCI proposed to continue launching a new wave of reform in the economic institution called the "Agenda 25-20" for 2020 with the main focus on resolving 25 overlaps in the law on business and investment, reducing and simplifying at least 20% of business conditions and administrative procedures in specialized inspection. The improvement of the institutional system integrated with e-government implementation and the efforts of the business community in innovating, transforming business model, sustainable development creates new incentives for the economy.

+ In the short run, supportbusinesses’ production, resolve administrative procedures quickly and drastically, and at the same time reduce costs for businesses to overcome this difficult period, ensure jobs for workers. VCCI recommended setting up a Government Working Group to help businesses cope with the pandemic Covid-19. The working group is responsible for giving advice to the Government’s  Prime Minister on solutions and urging the inspection, coordinating with ministries, localities, branches and business associations.to implement activities on supporting businesses.

It is necessary for Departments, agencies, localities to create favorable conditions for business and production, especially for tourism, aviation, commerce, services and import-export industries. Thus, implement short term monetary and fiscal support policies. It is also the right time to promote simplifying administrative procedures, abolish regulations that are not practical, reform business conditions more drastically, substantially, reduce the number of sub-licenses, changing the way of state management through strengthening the implementation of post-inspection.

- In the context of the complicated development of the pandemic Covid-19 and negative impacts on the world economy and Vietnam in particular, VCCI actively implemented many specific activities to support businesses, namely: Report on the business situation under the impact of pandemic Covid-19 quickly to the Government’s Prime Minister, proposed solutions to rescue the business community in the current period, implemented procedures for issuance on the certificate of origin (C / O) and other commercial documents, supported and advised businesses on markets, commodities, rules of origin from FTAs ​​between Vietnam and other countries, supported businesses in market research, inputs restructuring and diversifying markets, deployed the program of disseminating FTAs ​​and advised enterprises to restructure the supply and supply chain in the direction of focusing on the countries and territories within the FTAs ​​that our country has signed (effective and about to take effect), organized activities to support businesses to exploit the domestic market and strengthen the connection to develop internal markets between businesses and business associations in the consumption of products and services, shared technology and management experience ...

- Contributed opinions on a number of draft legal documents such as: Decree on sanctioning administrative violations of tax and invoices; Circular guiding corporate income tax; Circular regulating and guiding the organization and management of transport activities by cars and road transport support services; The Government’s Prime Minister's decision prescribes the selection and use of machinery, equipment, products and solutions in information systems to ensure network information security; Draft of the National Program on supporting businesses to improve quality productivity in the period of 2020-2030 ... (Details of the comments are updated at: http://vibonline.com.vn/tim- kiem-y-kien-vcci).

- Summarized activities under the PCI Plan 2019, continued coordinating with the Asia  Token Fund (ATF) to conduct the study "Overall assessment of enterprise resilience" integrated in the PCI survey, coordinated with the Ministry of Construction in evaluating procedures of granting construction permit in localities integrated in the PCI survey , summarized the consultancy on governance index of branches, departments and localities of Quang Binh, Quang Nam, Quang Ngai, Kon Tum provinces.

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

VCCI continued performing regular tasks on trade promotion, investment, training and business development and integration:

- Organized a meeting between Chairman of VCCI and PhD. Chang-Hee Lee, Director of ILO Vietnam to discuss the cooperation situation of VCCI and ILO as well as the advantages and disadvantages, some priorities of VCCI to support the business community in 2020 to prepare for the real work. The Labor Code is amended in 2019 with many new issues to challenge businesses. In 2020, VCCI will continue promoting programs to improve the "health" of businesses, especially on competitiveness, productivity improvement, prioritizing responsible labor practices for businesses, Improve skills for workers in the business sector as well as workers in the informal sector. At the meeting, leaders of VCCI and ILO continued affirming the cooperation of the two organizations, which has brought positive spillover effects to the Vietnamese business community in particular and tripartite partners in general.

- VCCI leaders worked with the Ambassador of Finland and the representative of the Finnish Innovation Fund (SITRA) on coordinating to organize the intensive conference on circulating economy in ASEAN in 2020. Vietnamese businesses and ASEAN are facing opportunities and challenges in applying circulating economic models. Successful application of circulating economic models not only brings economic benefits to businesses, but also contributes to Vietnam's green growth strategy and Vietnam's sustainable development goals. .

- Worked with experts of the Ministry of Labor, Invalids & Social Affairs, Vietnam General Confederation of Labor and foreign experts to adjust the Ministry of Sustainable Development Business Index (CSI), prepared for the ranking of 100 sustainable enterprises in 2020. Besides the available content, the CSI Index Set in 2020 will be updated and supplemented with important contents such as gender equality, biodiversity maintenance ...

- Organized a number of seminars on supporting business development such as seminars on preventing frauds on origin; Consultation workshop on training needs of women-owned enterprises ...; organized training courses for enterprises on "Limiting disputes, minimizing risks during the implementation of international trade contracts and updating changes in Incoterms 2020", "Making final reports accounting, checking settlement reports, checking after customs clearance - Updating some new regulations on customs field ”...

- Continued coordinating with the Central Economic Board and relevant agencies to implement the Campaign "Enterprises and businessmen to contribute ideas to improve economic development mechanisms and policies" and prepared the work of marking  and award ceremony.

- Organized a number of other activities: Online meeting of the General Assembly of the World Trade Associations; worked with the Ministry of Industry and Trade on international economic integration and granted certificates of origin of goods….

- Welcomed and worked with international delegations: Ambassador of Canada, Ambassador of Kazakhstan, Ambassador of Finland, Association of Korea-Vietnam Economic and Cultural Association, Ambassador of Ireland, Association of Vietnamese Entrepreneurs Overseas, European Business Association, Chilean Trade...

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)