TO: GOVERNMENT

The Chamber of Commerce and Industry of Vietnam (VCCI) is pleased to report on the implementation of tasks assigned in the Resolution 35 / NQ-CP dated 16 May 2016 by the Government on supporting and developing enterprises to 2020, solving difficulties, problems and recommendations of enterprises in fourth quarter  2017 as follows:

I. RESPONDING RECOMMENDATIONS ACCORDING TO THE RESOLUTION No. 35 / NQ-CP OF MINISTRIES AND INDUSTRY IN THIRD QUARTER 2017

Responding to the recommendations assemblaged by the Government’s Office

- In October, 2017, VCCI received 47 documents from 14 ministries, branches and localities to respond to recommendations of businesses (summarized in the VCCI's Report No. 3121 / PTM-VP dated November 20, 2017 on the implementation of the Resolution 35 in October 2017).

- In November 2017, VCCI received 40 documents from 15 ministries, branches and localities to respond to recommendations of businesses (summarized in the report No. 3353 / PTM-VP dated December 14, 2017 of VCCI on the implementation of the Resolution 35 in November, 2017).

- In December 2017, VCCI received 27 documents from 10 ministries, branches and localities to respond to recommendations of businesses. These recommendations were mainly collected by the Government’s Office through the system of receiving and responding to the recommendations of businesses on the electric portal of the Government.

In the fourth quarter of the year, VCCI received 114 written documents responding to recommendations of businesses from ministries, sectors and localities. These documents were been fully disclosed on the VCCI website as provided in the Resolution 35.

Responded documents to recommendations of businesses that VCCI received in December 2017 is as follows:

1.1. The Ministry of Transport:

The Ministry of Transportation had 3 official letters responding to recommendations of businesses on the following contents: Application for extension of duration of taxi, responding and guidelines on issuing badges to 100% foreign-owned companies; facilitating the licensing for electric trains in Sam Son City (to be transferred to the People's Committee of Thanh Hoa Province according to its competence).

1.2. The Ministry of Planning and Investment

The Ministry of Planning and Investment had 8 official letters responding to the recommendations of businesses with the following contents: Guiding legislation on bidding; implementing regulations on business and investment conditions; registrating business lines of businesses; encouraging agricultural and rural investment in accordance with the Decree 210/2013 / ND-CP; developing a legal system for supporting small businesses in Vietnam.

1.3. The Ministry of Finance

The Ministry of Finance had 7 written responses to the recommendations of businesses with many contents related to tax and customs such as procedures for temporary import and re-export of cosmetic products and medicines for foreign crew members. The prosecution of the case, the defendant to Mr. Dang Tien Duc, who is an owner of Duc Thuy Private Company  (in Ha Tinh Province) to investigate acts of tax evasion; Long clearance of goods for the import of medical equipment of Tan Viet My Joint Stock Company. There are also other contents such as management and use of revenues from project management activities of investors, project management boards funded with state budget capital; The settlement of contract packages in the form of package contracts; Increase the income for staff of PMU II ...

1.4. The Ministry of Labor, Invalids and Social Affairs

The Ministry of Labor, War Invalids and Social Affairs had 2 documents responding to enterprises' recommendations on the following contents: Payment of unemployment allowances to workers; providing vocational training for workers participating in unemployment insurance.

1.5. Vietnam Social Security

The Vietnam Social Security had two official letters responding to the enterprises' recommendations on contents of wages as a basis for paying social insurance premiums for workers and managers of one-member limited liability companies that State holds 100% of the charter capital; participation in compulsory social insurance to individual business owners.

1.6. Some ministries, branches and localities

- The Ministry of Industry and Trade issued written documents responding to the enterprises' recommendations on the contents of the inspection of energy labeling performance for electric motor products.

- The Ministry of Agriculture and Rural Development (MARD) responded in written document to recommendations of Duc Minh Company on abolishment of the registration of feeds circulated nationwide and each product has a quality standard  that only allows to put a trade name accordingly.

- The Ministry of Science and Technology had documents responding to recommendations  of Electricity Development and Investment Stock Company for the protection and enforcement of industrial property rights to "One power pole transformer station” according to patent rights No. 16461.

- The Ministry of Construction responded to recommendations of the Thien Nam Joint Stock Company to remove difficulties for enterprises consuming artificial sand products in the production of concrete and mortar by refuse stone from coal mining activities instead of natural sand.

- The People's Committee of the Vinh Phuc Province had written documents responsding to recommendations of Phuong Thao Private Enterprise on the petroleum retail network in the Vinh Phuc Province related to proposing for construction and investment of petrolium station of the business.

1.7. Responded recommendations that VCCI gathered and sent to the Government’sOffice:

In October 2017, VCCI received 8 documents responding to 10 recommendations In November 2017, VCCI received 9 documents responding to 11 recommendations. In December 2017, VCCI received only 3 written documents responding to businesses. These recommendations were submitted by VCCI to ministries from May 2017 to November 2017. The written responses that VCCI received were posted on the VCCI’s website and conveyed to business’s recommendations.

Thus, the end of December 30, 2017, there were 20 recommendations that VCCI sent to the Government’s office, but has not yet received replies, including:

- 04 recommendations in Annex 1, Report No. 1389 / PTM-VP dated June 13, 2017 of VCCI to compile the recommendations of enterprises in May 2017 are under responsibility of the Ministry of Natural Resources and Environment, the Lao Cai People's Committee, the Ha Tinh People's Committee, the Ministry of Industry and Trade.

-02 recommendations in Annex 1, Quarter II report No 680 / PTM-VP dated July 14, 2017 of VCCI are under the responsibility of the Lao Cai People's Committee, the Ministry of Foreign Affairs for responding.

- 03 recommendations in Annex 1 of the VCCI 2047 / PTM-VP dated August 21, 2017 are under the responsibility of the Ministry of Finance and the People's Committees of Tien Giang and Lang Son provinces for responding.

- 01 recommendationin Annex 1, August Report No. 2360 / PTM-VP dated September 21, 2017 of VCCI is under responsibility of the Ministry of Labor, Invalids and Social Affairs for responding.

- 03 recommendations in Annex 1, Report No. 3121 / PTM-VP dated November 20, 2017 of VCCI, which are under responsibility of the Ministry of Labor, Invalids and Social Affairs; Health, Transportation and Social Insurance of Vietnam for responding.

- 05 recommendations in Annex 1, November Report No. 3353 / PTM-VP dated December 14, 2017 of VCCI are under the responsibility of the Ministry of Finance; Agriculture and Rural Development; and the People's Committee of Dak Lak, Phu Tho

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

- In October, 2017, VCCI received 130 recommendations of enterprises by the Government’s Office through the system of receiving and responding to recommendations of businesses on the Government's electric portal. By December 31, 2017, there were 106 recommendations that were received by ministries, branches and localities. There were only 24 recommendations that have not been responded (see attached list in Annex 2). All recommendations are overdue for responding.

- In November 2017, VCCI received 76 recommendations by the Government’s Office through the system of receiving and responding to recommendations of businesses on the Government portal. By the end of December 31, 2017, there were 47 recommendations submitted by ministries, sectors and localities. There were 29 recommendations that have not been responded (see attached list in Annex 2). All recommendations are overdue for responding.

- In December 2017, VCCI received 36 recommendations from enterprises received by the Government Office via the system of receiving and responding to enterprises' recommendations on the Government's electronic portal. By the end of December 31, 2017, there were 20 recommendations responded by ministries, branches and localities. There were 16 recommendations that have not been responded. (list attached as Annex 3), in which, some of recommendations are overdue for responding.

- In third quarter of the year, VCCI received 242 recommendations by the Government’s Office through the system of receiving and responding to recommendations of businesses on the Government's electrical portal. According to the VCCI, by December 31, 2017, there were 173 recommendations submitted by ministries, sectors and localities, accounting for 71.5%. There were 69 recommendations responded and accounted for 28.5%. Most of these recommendation are overdue for responding due to regulations of the Government’s Office, Many recommendations were notified by the Government’s Office, but ministries, branches and localities have not yet replied.

3. Assessment of business community on some reforms by the Government:

The business community appreciated the drastic direction and management of the Government to achieve economic growth in 2017 was 6.81% and also the highest increase in recent years. The business investment environment, competitiveness capacity, innovation index have improved significantly. In 2017 ministries and sectors have cut more than 5,000 administrative procedures. Along with impressive indicators of new business establishment, attracting domestic and foreign investment, the growth of the stock market; export growth, tourism growth, increasing foreign exchange reserves, the stability of the VND ...Which have shown the social confidence, market confidence and investor confidence in the development of Vietnam's economy that has been increasingly strengthened.

In particular, the Government determined in 2018 to tighten administrative discipline, to promote individual accountability; to build a dedicated, pure and decent civil service in order to strongly eliminate embezzlement and harassment in the performance of duties under the guideline of "10 words": Discipline, Integrity, Action, Creativity, Effectiveness. At the same time, the Government also requested in 2018:

- Ministries, sectors and localities must reduce, simplify 50% of business conditions, list of goods, products and procedures of specialized inspection.

- The localities must renovate the work of dialogue, reception and handling of feedback and recommendations of individuals, organizations and enterprises on problems and inadequacies in the implementation of mechanisms, policies and laws. Actively sending their feedback and recommendations to ministries and specialized management agencies for handling according to their competence and concurrently to the Ministry of Justice for summary.

- State administrative agencies cut unnecessary meetings, administrative papers and reporting regimes; Continuing reviewing, cutting and simplifying administrative procedures related to specialized inspection, business conditions and cost reduction for enterprises; considering, handling feedback and recommendations of people and enterprises on the Government’s electric Portal, rectifying acts of harassment, neglect and emotion of cadres and civil servants in performance of public duties.

-Striving for the end of 2018, 100% of units under ministries, central branches and provincial-level People's Committees shall resolve and handle dossiers of work in the network environment; focusing on effectively implementation of the electronic one-stop shop information system at ministries, branches and localities.

Business community believes in business environment, investment which will continue to improve smoothly, create confidence and conditions for production and business development further.

In fourth quarter 2017, the business community and the public appreciated a number of measures to reduce barriers, business conditions, sub-licenses of the Government and some ministries such as:

- The Ministry of Health plans to submit proposals to the Government to reduce administrative procedures in food safety in five categories: (1) conditions for food production and trading in accordance with the provisions of the Decree No. 67/2016 / ND-CP dated July 1, 2016. (2) Publication of food products, state inspection of food. (3) Certificate of food safety eligibility establishments. (4) Food advertising. (5) Confirm knowledge of food safety.

Specifically, it will abolish 5 conditions for food production establishments; 3 conditions with food business; 8 conditions with business establishments (production - business) of functional food and food fortify micronutrients; 9 conditions on establishments of producting and trading in food additives and food-processing supports; 9 conditions on producing natural mineral water, bottled water, instant ice. In comparison to the Decree No. 38/2012, the new decree has eliminated all components of the dossier such as business registration certificate or enterprise registration certificate for imported products; Certificate of completing food safety conditions for imported products; Quality control plan; Periodic monitoring plan; Detailed information about the product; product samples...

- The Ministry of Natural Resources and Environment (MoNRE) also issued an document to the Government to abolish 36 business conditions, and to amend 15 conditions required for individuals in enterprises, accounting for 44.7% of business conditions that be managing.

- The Ministry of Agriculture and Rural Development (MARD) proposed to abolish, modify 118 business conditions, accounting for 34.2% of business conditions under management. In particular, abolished 65 business conditions, revised downward 53 conditions.

The business community would like to committe reducing barriers, business conditions, administrative procedures, reducing business costs for businesses of ministries, sectors and localities in order to promptly being carried out.

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

In fourth quarter 2017, VCCI carried out the following tasks:

1. Implemented activities contributing to administrative reform, creating favorable conditions for enterprises; creating a favorable environment for supporting start-up andinnovative businesses; ensuring business rights, equal access to resources and business opportunities of businesses; reducing business costs for businesses and protecting the legitimate rights and interests of businesses:

- Gained opinions of the business community that commented on many projects and drafts of important legal documents such as Law on Livestock Production; Law of management; Law on militia; Law on network security ... and many other legal documents.

- Coordinated organizing many forums, conferences, seminars and important dialogues to discuss the proposed policies and laws with the Party and the State relating to socio-economic development and business and investment environment improvement and support to development of business community. There were some outstanding activities such as:

+ Organized the 4th Vietnam Business Sustainability Forum (VCSF) with the theme " Replication of Business Models resolving Challenges to Sustainable Development" with the participation of about 350 delegates. Government agencies, ministries, industries, enterprises, business associations, research institutions, embassies, international organizations, research institutes as well as news agencies and press in and out of the country. The Forum focused on:  The need for the promotion and replication of innovative business models / solutions for the successful implementation of the Sustainable Development Goals in Agenda 2030; Mobilized effective private sector participating in implementation of commitments of the Paris Climate Change Agreement; Shared the experience of replicating sustainable business models ... The forum was also an opportunity for business executives to directly interact with government leaders, thereby increasing support from the government for Sustainable development of businesses.

+ Organized a Forum on "Women Entrepreneurs in the Digital Economy" with the participation of nearly 200 delegates from ministries, international organizations, associations, association of business women clubs and nationwide representative women entrepreneurs.. The Forum aimed to provide opportunities for women entrepreneurs to update and share business experiences in the digital economy and to apply social media tools in e-commerce. The issues that women entrepreneurs had to face and need to innovate in order to adapt, took advantage of opportunities brought by digital economy and e-commerce were also discussed at forums to support business women to build up development strategies and reach the regional and international market.

+ Coordinated with the Central Institute for Economic Management (CIEM) to organize a Business Forum 2017 with the theme "Creating environment for development of private businesses" to identify barriers, difficulties and challenges that the private sector was facing, thereby, sought solutions to support the private sector to have a healthy, a stable and an effective development.

 + Co-ordinated with the Business Forum Alliance to hold a Vietnam Business Forum 2017 (VBF) in late 2017 with the participation of the Government’s Prime Minister Nguyen Xuan Phuc and representatives from many ministries and sectors,  association of foreign enterprises investing in Vietnam, some international organizations and business associations in the country. VBF focused on discussion of issues raised by the business community, such as promoting private sector development, productivity improvement  and administrative reform. VBF in the end of 2017 was the forum marking the 20 years of establishment VBF. Since the VBF has been transferred from the Government and international organizations to the VCCI and 16 business associations for chairing organization, the VBF has promoted the role of the private sector and has been seen as an important step forward.  In particular, the development of the economy and the business community in Vietnam has made important contributions to VBF. At this VBF forum, the associations have proposed 145 difficulties, and proposed some solutions to institutional reform and administrative procedures. Recommendations were all seriously received by ministries and sectors and considered for settlement.

+ Coordinated with the Ministry of Finance, the General Department of Customs and the General Department of Taxation in organizing a dialogue with businesses on tax policies and procedures in the North in Hanoi on November 27, 2017 and the southern area in Ho Chi Minh City on November 29, 2017. Attending the two conferences, there were nearly 1000 enterprises in various fields of activity. The meeting focused on 2 main contents: Providing general information on changes in policies, new administrative procedures in the field of taxation, customs and dialogues to solve difficulties and problems for businesses and comments on the development of legal documents from businesses.

- Continued monitoring and guiding the professional activities of the employers’ 'representative to the local VCCI’s branches, the employers' councils at the local business associations when participating in the three parties mechanism involved in labor relations, especially involved in the settlement of labor disputes and cases of go - slow and strikes that be not in accordance with the law. At the same time, training courses on labor protection, occupational safety and hygiene in the provinces were organized.

+ Coordinated with the Ministry of Labor, War Invalids and Social Affairs in organizing the Employer Conference 2017 with the theme "Dialogue with enterprises on labor policy, salary and social insurance research".

2. To carry out trade and investment promotion activities as well as programs and projects to support raising the competitiveness of businesses and business associations:

- Successfully organized events in APEC 2017.

+ During the APEC 2017 Summit Week, VCCI initiated  to organize the Vietnam Business Summit (VBS) in the framework of the APEC 2017 Submit Week with a chair of VCCI’s Chairman, the Chairman of APEC CEO SUMMIT Vu Tien Loc; the attendance and direction of the Government’s Prime Minister Nguyen Xuan Phuc; The attendance of the Executive Director of World Economic Forum Philipp Rosler and Victoria Kwakwa – the Vice President of the World Bank in East Asia and Pacific with nearly 2,000 top corporate leaders in the country and international, in which included 1100 international delegates, 900 national delegates in the country. The conference provided opportunities for Vietnamese enterprises to participate in direct contact and conduct investment promotion activities with top regional leaders and regional head general directors, meanwhile, also  assisted international investors finding out potentials of investment and business cooperation in Vietnam. Under the theme "Vietnam - Trusted Business Partners", VBS focused on business opportunities in Vietnam. VBS consisted of 3 sessions with the theme "Vietnam - Comprehensive Innovation for Sustainable Development"; "Vietnam - Friendly Destination to businesses" and thematic workshops, with topics that including Sustainable Agriculture, Finance for Development, Health and Education, Infrastructure, Special Economic Zone  and tourism potential, startup and innovation. This is the first business summit of Vietnam and also the largest conference ever.

+ Chaired coordination with the APEC National Secretariat, the APEC CEO Summit was held during November 8-10. This was the most important event of enterprises in the APEC 2017 Summit. Attending the conference were President Tran Dai Quang, leaders of ministries, sectors and localities; Leaders of major international organizations such as the World Bank (WB), World Economic Forum (WEF) and more than 2100 participants, including 1200 international delegates and 900 national delegates. This was the largest conference in the history of APEC CEO Summit (1500 delegates from APEC CEO Summit in China in 2014, 1000 delegates in Japan (2010), 1000 delegates in United States, 700 delegates in Russia (2012), 1000 delegates in Indonesia (2013), 800 delegates in the Philippines (2015) and most recently in Peru (2016). ) with 1200 delegates. Speaking at the opening ceremony, the President Tran Dai Quang affirmed that APEC was the most effective cooperation mechanism in promoting the role of enterprises, making Asia - Pacific became the engine of growth and inter - globally and a nursery of new ideas for the future. In addition, many leaders of the world's leading economies also spoke to the APEC business community, including the President of United States, the President of the People's Republic of China, the Prime Minister of Australia, the Prime Minister of Malaysia, the Prime Minister of New Zealand... with the theme of "Creating New Motivation, Working Together in the Future". The conference focused on the challenges that governments were facing and businesses in the context of globalization, the role of governments and companies in ensuring that workers are properly trained and qualified to undertake future work. Delegates also discussed various approaches to address the relationship between automation and job security across the global. The conference also proposed solutions: training and education should reflect needs of the economy; Governments need to build a social security system for the unemployed workers; encouraged business reforms to protect workers from the rapid development of the automation process.

Together with the main conference program, VCCI intensified meetings between representatives of the Government and business leaders, supported bilateral business contacts. Specifically, the VCCI held bilateral meetings between the Prime Minister and large delegations including leading corporations from the United States, China (November 7); A meeting between President Tran Dai Quang and APEC Business Alliance (November 8); Supported localities meeting with international organizations, big business delegations of the region. The activities of businesses in the APEC Submit Week took place in a vibrant and highly effective manner. Over this period, there were 121 agreements worth more than $ 20 billion have been signed between Vietnamese businesses and international partners.

- Organized many activities to honor and reward enterprises and many activities on the anniversary of Vietnamese businessmen on October 13 such as:

+ Organized a business delegation that included more than 100 representatives from business associations and businessmen to meet with Government’s Prime Minister Nguyen Xuan Phuc on the occasion of Vietnamese businessmen's day on October 13. At the same time, in collaboration with Vietnam Television, organized a Dialogue and General Artistic Program with the theme "Vietnamese Entrepreneurs: Fatherland Calling themself".

+ Organized an award ceremony: "Outstanding business women of Vietnam in 2016" - Golden Rose Cup awarded to 100 outstanding business women, outstanding achievements in production, business, creativion, dare to think, dare to do in the executive and business management; positive contribution to socio-economic development and community.

 + Organized a sustainable businesses declaration in Vietnam in 2017, awarded CSI for 100 enterprises. The rating of the Organizing Committee was based on a set of corporate sustainability index (CSI) that is the set of criteria that VCCI concretized and constructed in accordance with Vietnam from the United Nations’ criteria set. . CSI was developed as a measure of business value based on sustainable development criteria in the areas of economy, environment and society, in line with the political and social context in the country as well international practice. CSI is also a tool for recording measurement objectives and managing changes to make business operations to be more sustainable.

+ Coordinated with the Vietnam General Confederation of Labor to organize a rating program "Enterprise for Employees" in 2017. This was an annual event to honor the good relationship between employers and employees, for the sustainable development of enterprises, contributed significantly to the development of the economy before the integration challenges.

- Organized many trade and investment promotion activities within the framework of visits and work in the countries of the Party and State leaders as well as leaders of countries visiting and working in Vietnam or business delegations of countries that come to know the market and look for partners in Vietnam. Some prominent activities were as follows: the delegation of business delegations accompanying the Government’s Prime Minister Nguyen Xuan Phuc to the ASEAN Summit and attend the ASEAN Trade and Investment Summit (ABIS). Organized on sidelines of the ASEAN Summit and other related Summits; organized a"Vietnam-Slovakia Business Forum" during the official visit to Vietnam by the Deputy Prime Minister cum Foreign Minister of Slovakia; Organized a Vietnam-Nigeria forum; Organized a Vietnam-Taiwan Industry Cooperation Forum; Organized a Vietnam-Russia Business 3. Summing up the difficulties and obstacles of enterprises:Forum ...

3. Summing up difficulties and obstacles of enterprises::

In fourth quarter 2017, VCCI continued to receive recommendations of enterprises to convey to the ministries and localities. Through monitoring, the VCCI noticed some outstanding business issues in third quarter as follows:

- The regional minimum wage increase, social insurance costs should be considered and have an  appropriate roadmap to the endurance of businesses.

- The bidding for drugs and payment of medical insurance expenses by the Social Insurance of Vietnam were still inadequate.

- Businesses in the food and fishery sector strongly recommended a lot on the Ministry of Health's specialized inspection according to Decree 38 / NQ-CP as amended by the Ministry of Health.

- - Enterprises continued to have many concrete problems in tax policies, difficulties encountered in the implementation of tax and customs procedures.

- Many enterprises faced difficulties in implementing regulations on land, planning production areas, production lines of locals.

In December 2017, VCCI continued to coordinate with ministries, localities and business associations to bring together new recommendations of businesses. The list of new recommendations is presented in Appendix 1.

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

C/C :

As above;

- The Steering Committee;

- The Government’s Office (DMDN Dept.

- The Ministries of: Finance, Science and Technology; Labor, War Invalids and Social Affairs; Vietnam Social Security.

- Economic Information Center (to post on Website)

- Saved by  Archival, Admin (for synthetics).