In its submission, VCCI highly appreciated the Ministry of Justice’s proactive approach in consulting the business community on institutional reforms to support growth. This is considered an appropriate approach, as businesses are the direct drivers of economic growth, and institutional reform is only meaningful when it effectively unlocks production and business capacity.

From practical business operations, VCCI observed that current institutional barriers do not stem from a lack of laws, but rather from the quality of regulations, overlaps between different laws, and especially issues in implementation. Businesses do not need more laws—they need clear, stable regulations that are consistently enforced and predictable.

Firstly, addressing overlaps and conflicts among laws from a business perspective.

VCCI pointed out that a manufacturing enterprise currently has to comply with dozens of different laws simultaneously. Conflicts often arise at the “intersection” of laws such as Investment, Land, Construction, and Environment, creating procedural loops that confuse businesses.

According to the Vietnam Chamber of Commerce and Industry, institutional reforms are only meaningful when they genuinely unlock productive and business capacity.

VCCI recommends that the Ministry of Justice of Vietnam take the lead in reviewing the legal system based on the full lifecycle of business activities (from establishment to dissolution), rather than reviewing each law separately. This approach, from the perspective of compliance, would help identify bottlenecks that traditional state management methods may overlook.

Secondly, ensuring stability and predictability of business laws.

Frequent legal changes with insufficient transition periods are increasing compliance costs and creating risks for long-term business planning.

VCCI proposes setting minimum transition periods of 12–24 months for regulatory changes that directly affect businesses. For large-scale projects, stabilization clauses should be applied to protect investors from adverse changes in taxes and incentives. At the same time, the legal system should clearly separate a “stable layer” (property rights, freedom of business) from a “flexible layer” (technical regulations).

Thirdly, making a substantive shift from pre-inspection to post-inspection.

Despite long-standing policy direction, the “ask–give” mechanism still exists through sub-licenses and approval documents.

VCCI recommends a comprehensive review to eliminate unnecessary business conditions and apply the “one-in, one-out” principle, similar to models in the UK, Germany, and South Korea. At the same time, AI and big data should be leveraged to implement risk-based inspections instead of widespread, overlapping checks.

Fourthly, reforming dispute resolution and bankruptcy mechanisms.

VCCI emphasized that contract enforcement and dispute resolution are key indicators of a legal environment. Currently, court proceedings remain lengthy, and the bankruptcy mechanism is inefficient.

It recommends reducing dispute resolution time to the ASEAN-4 average by 2030, establishing specialized commercial courts in major cities, promoting arbitration and commercial mediation, and simplifying bankruptcy procedures to release resources back into the market.

Fifthly, ensuring consistent legal enforcement across localities.

The same regulation being interpreted and applied differently across provinces leads to inequality and market fragmentation.

VCCI proposes introducing the principle of a “unified national market” to limit local barriers. The Ministry of Justice of Vietnam should strengthen oversight of local legal documents and build a public database on legal enforcement practices in key sectors for businesses to reference.

Sixthly, requiring substantive economic impact assessments.

VCCI noted that current policy impact assessments are often formalistic.

It recommends that all new policy proposals must quantify compliance costs (in terms of time and money for businesses). Impact assessments should be conducted by independent bodies to ensure objectivity and avoid conflicts of interest.

Finally, promoting the participation of the business community.

VCCI suggested that the Ministry of Justice of Vietnam involve industry associations and leading enterprises in the policymaking process as “co-designers.”

Early and substantive consultation would help regulators quickly identify implementation issues, ensuring that policies are practical and supportive of economic growth objectives.