This is the sharing of the Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) - Pham Tan Cong at the seminar announcing the Business Legal Flow Report in 2023 organized by VCCI on April 25th,2024. This is an annual product of VCCI since 2018 to review important and notable issues in the process of building business-related legal regulations in the year.

The workshop announcing the Business Legal Flow Report for the year organized 2023 by VCCI took place on April 25th,2024.

In his opening remarks at the workshop, Chairman Pham Tan Cong stated that 2023 was a year marked by complex and unpredictable developments both globally and domestically for the business community. Internationally, armed conflicts between Russia and Ukraine continued; the conflict between Israel and Hamas in Gaza escalated; and the crisis spreading to the Red Sea threatened international maritime transport, leading to a sharp increase in shipping rates between Asia and Europe and macroeconomic fluctuations in major economies, posing many challenges.

Domestically, businesses continued to face many difficulties and challenges (such as declining orders, lack of capital, etc.). Although the number of enterprises entering and re-entering the market increased compared to 2022 (up 4.5%), the number of businesses withdrawing from the market was very high (up 20.5% compared to the same period in 2022 and the highest since 2017 to date).

Chairman of VCCI - Pham Tan Cong delivered the opening speech at the Workshop.

"In the context of numerous challenges both globally and domestically, in the past year, the National Assembly and the Government have made tremendous efforts in policy-making and institutionalizing frameworks for business activities. Many important laws fundamental to the economy such as the Land Law, the Housing Law, the Real Estate Business Law, and the amended Law on Credit Institutions have been passed," shared Chairman Pham Tan Cong.

According to Chairman Pham Tan Cong, in the process of participating in and closely monitoring the policy and legal development process in the past year, VCCI has noticed several noteworthy "streams":

Firstly, efforts to reform, reduce, and simplify costs for businesses have been vigorously promoted.

Specifically, over the past year, ministries and sectors have continued to review and develop plans to reduce compliance costs for businesses, reform administrative procedures under Resolution 68/NQ-CP. The Government and the National Assembly have jointly reviewed the legal normative document system in line with Resolution 101/2023/QH15.

"In 2023, VCCI gathered and submitted nearly 100 issues and shortcomings in regulations and enforcement reflected by businesses to relevant authorities, and the majority of these suggestions have received responses, with many acknowledged and plans for amendments in the near future. Although there are still some doubts about the practicality and further expectations for reform, the business community highly appreciates these efforts, especially the clear advantages seen in implementing administrative procedures in the electronic environment," shared Chairman Pham Tan Cong.

Overview of the Workshop announcing the Business Legal Flow Report for 2023

Secondly, there have been many efforts to resolve obstacles and shortcomings that hinder businesses.

Specifically, in 2023, VCCI received quite a few reports of obstacles related to regulations impacting the investment and business activities of enterprises such as: fire prevention and firefighting standards; inspections of transit shipments; interest expense caps in transactions linked with banks; harmonization of veterinary drugs regulations...

State agencies have investigated, listened, and resolved obstacles and difficulties for businesses, such as reviewing and amending problematic regulations (such as amending fire prevention and firefighting standards, proposing amendments to decrees guiding the Fire Prevention and Firefighting Law; Drafting amendments to Decree 132/2020/NĐ-CP on linked transactions; ...), organizing dialogues with businesses to address concerns and find solutions.

Although some obstacles have not been completely resolved, and there are still issues with differing views between regulatory agencies and businesses, the fact that state agencies receive and seek to address business concerns demonstrates a policy-making attitude. The business community highly appreciates these efforts.

An expert speaks at the Workshop announcing the Business Legal Flow Report for 2023.

Thirdly, there are still some policies that are not suitable, requiring strong changes in management mindset.

With the constant evolution of economic activities, some policies have become outdated and need breakthrough changes, transitioning towards a stronger market orientation.

The management policy of petroleum is an example (currently, the state intervenes directly in pricing, imposes strict regulations on business methods, organizes distribution systems, requires petroleum enterprises to reserve circulation, and import a minimum quantity; specifies the number of intermediaries that retail petroleum enterprises can import...), or procedures in price management (the state requires enterprises to explain the reason for price adjustments when submitting price declaration procedures). These management policies have significantly reduced dynamism and competition in the market and had a considerable impact on enterprises when there are fluctuations in the market.

The positive aspect is that the Government has plans for amendments; the Prime Minister has directed the Ministry of Industry and Trade to lead the fundamental amendments to the decree on petroleum business. We hope to see significant changes in management mindset in this new decree.

Representatives of the association participated in providing opinions at the Workshop on the Publication of the Business Legal Flow Report 2023.

Fourthly, green transition policies are being vigorously promoted but still face many concerns from businesses.

In response to the green transition requirement, in recent times, the State has issued many policies and legal regulations for this field. This is an irreversible trend, however, since these are new policies, in the process of formulation and proposal, some current policies have raised many concerns for businesses regarding the effectiveness of policies related to the extended producer responsibility (EPR); management overlap leading to increased obligations for businesses in regulations related to greenhouse gas emissions reduction, energy saving;...

"Although there are still many expectations, the business community appreciates the efforts of state agencies in formulating and implementing policies over the past year. We want to acknowledge the policies, legal issues from the perspective of the implementing entities, to convey expectations to the management agencies.

We believe that this report will be a useful source of information for the National Assembly, for ministries, for business associations, for legal experts to refer to in the process of formulating, commenting on legal regulations. We look forward to continuing to receive cooperation and feedback from you," expressed Chairman Pham Tan Cong.

At the workshop, along with the detailed presentation of the Drafting Committee on the Business Legal Flow Report 2023, the workshop also heard evaluations, suggestions from experts, associations, and businesses regarding the issue of policy development, institutional establishment.