Administrative procedure costs, high bank interest rates, operating in difficult economic conditions, sharply reduced orders... can be compared to the burden that businesses have to bear as "a neck with many shackles". Is it because of this heavy drag that many new businesses are established and many businesses are withdrawn from the market? It is estimated that every month, nearly 19,900 new businesses are established, but at the same time, 19,200 businesses cease operations. What does the above picture of businesses in the current era show? At least the fragility of businesses!? They are born but we do not know how they will survive.
Continuing to simplify administrative procedures and reduce legal compliance costs is also a way to support business operations. We imagine that nearly 20,000 new businesses are established each month, adding up everything (not only money but also effort, time...) is probably not a small number. In a national survey criteria, the so-called "market entry cost", which businesses always complain about, is both high and complicated. In that situation, if we can reduce the estimated number by 20% in both quantity and cost, how valuable it would be!
Law enforcement is by the people, organizations, and enterprises. The regulations are issued to manage social and economic activities. However, this system of regulations still has many unreasonable issues. It may be overlapping and complicated; the regulations may no longer be suitable to reality, hindering activities; and it may also be that when regulations are issued, they have gone beyond the limits of necessity...
Recently, the Minister of Planning and Investment said that in 2022, Ho Chi Minh City alone asked the ministry 584 documents. The ministry responded to 604 documents. The Minister added that the content of the questions was all under the authority of the city. From the central perspective, it partly shows the pushing, avoiding, "kicking the ball of responsibility to the higher level". But the locality does not think so, the Chairman of the People's Committee of Ho Chi Minh City responded to this as follows: Through research, the city found 4 groups: Group 1 is practical problems of Ho Chi Minh City that have arisen but are not yet regulated by law; Group 2 is problems that have been regulated but this law is different, that law is different; Group 3 is problems that have been regulated but the understanding is different so we have to ask. And Group 4 is problems that are clear, but because the research staff feel uncertain, they ask.
The above example shows the complexity of administrative issues. One side asks, the other side answers to perform their management tasks well. But in the end, who is waiting? It is the enterprise. All of these things affect the enterprise’s costs. At best, it affects money, time, at worst, it is losing business opportunities.
Life is always moving and new problems always arise. Therefore, it is not enough to just solve this stage. That means 10 procedures can reduce 2 procedures; 10 dong of cost can reduce 2 dong of cost, and we must prepare a spirit of drastic, quick, and decisive reform. Stagnant problems should not be allowed to repeat; new problems that arise must be solved quickly and neatly, meeting the requirements of the industry as quickly and as high as possible in life. It is necessary to review the way of issuing legal regulations for reform, do not let the situation as Mr. Phan Van Mai reflected: "The issues have been regulated but this law is different, that law is different; there are regulations but the understanding is different, so we have to ask".
If you keep asking and answering, businesses will keep waiting.
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