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Businesses expect 'administrative revolution'

In just 2 weeks, the 2-tier local government model will officially operate nationwide. A comprehensive restructuring "revolution" from geographical space to apparatus, people... is blowing a new and exciting wind into the business community.

Báo Gia LaiBáo Gia Lai17/06/2025

The project will take only 6 months instead of 1 year.

That is the expectation of Mr. Tran Van Thi, Director of My Thuan Project Management Board, when sharing with Thanh Nien reporter about the "administrative revolution" that is being urgently implemented by the entire political system with a specific time frame of July 1 to officially put into operation the 2-level local government.

As the leader of a unit that is the investor of a number of major national infrastructure projects, Mr. Tran Van Thi deeply understands the "miserable and helpless" situation of bridge and road projects that are "tied down" by procedural barriers. For example, regarding the procedure for granting material mines for the North-South expressway project in the eastern phase of 2021-2025, although the National Assembly has allowed the application of a special mechanism, in reality, the implementation still takes 5-7 months, and in some localities it takes longer.

The main reason is that the time to process administrative procedures must go through many stages and levels. When submitting to the competent authority for decision, opinions must be sought at all levels. Each level takes many days because administrative procedures must be carried out from the bottom up. Or for the investment project establishment procedure, in the project appraisal and approval step, to submit to the competent authority for approval, the appraisal agency must seek opinions from many related ministries, branches and localities. Normally, a group A project receives opinions from 8-10 ministries, branches, not to mention related localities. There are even projects that must be consulted many times, and each unit must carry out procedures from the bottom up, taking a lot of time for a written opinion.

Thủ tục hành chính tinh gọn sẽ giúp đẩy nhanh tiến độ các dự án. ẢNH: N.A
Streamlined administrative procedures will help speed up project progress. PHOTO: NA

Complicated procedures and processes have "tied up" the construction progress, making it impossible for projects to run quickly, and consequently disbursement work has not met the target. Therefore, since the Party, State and Government started implementing the project to streamline the apparatus, merge localities, eliminate intermediate levels, and form a 2-level local government, Mr. Thi has been eagerly waiting.

"This is truly a revolution, from 63 provinces and cities now there are only 34, along with decentralization, decentralization of power to give local authorities the right to decide, do and take responsibility, then certainly administrative procedures related to national key projects going through many localities will be resolved thoroughly. Land procedures, site clearance, construction materials will no longer be as slow and lengthy as before. Not only national key projects but also each project implemented by enterprises and people will be done faster, more concisely, and more simply.

The road, instead of taking 1 year to complete, only takes 6 months to complete, the bridge, instead of being exposed to the sun and rain for 6 months, now only needs 3 months to be put into service for the people. The progress is twice as fast, which means the contribution to GDP from each domestic product will also double. This is the basis for contributing to the realization of the economic growth target of 8% this year and double-digit growth in the coming years. We have strong faith in this round of administrative restructuring and thorough decentralization," the Director of the My Thuan Project Management Board expressed.

Like transportation, real estate is also the industry most affected by procedural barriers. It is estimated that up to 80% of the difficulties of the real estate market are related to legal issues. There are projects that have to "apologize" to customers, delaying their deadlines for up to 4 years just because they cannot get a construction permit; while there are projects that have been licensed for half a decade but still cannot calculate land use fees. Enterprises not only have to bear the burden of bank debt, stuck in cash flow, but also have to compensate customers for delays. Therefore, Mr. Tran Khanh Quang - General Director of Viet An Hoa Real Estate Investment Joint Stock Company - believes that this reform of the public administrative apparatus will not only "save" businesses but also unlock the key for the real estate market to revive more strongly and sustainably.

Mr. Tran Khanh Quang analyzed that with the new mechanism, nearly 90% of important procedures are being assigned to localities, specifically commune level for settlement. Commune level officials are the ones who are closest to local realities, and can now make their own decisions on planning, compensation, land use fees, etc., so they can make quick and concise decisions, with simple procedures. Resolving the intermediary stage helps businesses no longer have to run around waiting for opinions from many levels, causing the time to complete project procedures to be 3 or 4 times slower than before. At that time, the level of product circulation on the market will be faster, creating a more abundant supply, helping the real estate market to be bustling with a richer and more diverse product system.

"We clearly feel that a new cycle, a new era of unprecedented nature has officially begun. Enterprises have great faith in the future of the industry and the market, so they are very confident and bold in new plans that have been cherished for a long time. We believe that the real estate market will soon witness a strong revival, more stable development, more transparency and more sustainability," Mr. Tran Khanh Quang shared.

Hope the reform will be carried out synchronously

A streamlined, transparent, honest, and simple-procedure government apparatus is the basic foundation for businesses to have favorable business conditions. However, according to CEO of Bamboo Airways Luong Hoai Nam, that is only a necessary condition. For businesses to truly develop faster and stronger, worthy of the expectations and responsibilities assigned by the Party and Government, the sufficient condition is a free and competitive business environment.

A revolution in the public administration apparatus needs to be carried out in parallel with a radical revolution in removing barriers and procedures in the institutions. Private enterprises have high expectations that with new policies, new approaches, and practical opinions from the business community, the State will listen, consider, and implement to create a free and equal environment for Vietnamese enterprises to develop strongly.

Mr. Luong Hoai Nam (General Director of Bamboo Airways)

According to Mr. Nam, the two-level local public administrative apparatus will contribute to reducing cumbersome and complicated procedures, even creating negative consequences that make it difficult for businesses. However, the root of the request-grant mechanism still lies somewhere in the law itself and sub-law documents. For example, a business that wants to develop an airport or railway project must submit it from the local level to higher levels for review to see if it is in accordance with the planning or not. If local leaders assess that the project is good for socio-economic development but not in accordance with the planning, they must go through a lot of procedures and documents to adjust the planning, which takes a lot of time. In case local leaders "don't like it", they can easily reject the business with the completely legitimate reason that "it is not in the planning".

"Ministries, departments, and localities are fully capable of assessing whether a project should or should not be permitted, based on the nature of the project compared with the actual conditions of the locality, not comparing it with the planning, which is always out of step with the pace of market developments. Or like the Investment Law, when a business applies to establish an airline, there is an Aviation Law to follow, so why do they still have to apply for an investment certificate according to the 2016 Investment Law? The State should boldly abolish these two laws and the request-grant mechanism created by these two laws," Mr. Luong Hoai Nam suggested, adding: "A revolution in the public administrative apparatus needs to be carried out in parallel with a thorough revolution in removing barriers and procedures in the institutions. Private enterprises have high expectations that with new policies, new ways of doing things, and practical opinions from the business community, the State will listen to, consider, and implement them to create a free and equal environment for Vietnamese enterprises to develop strongly."

According to Ha Mai (TNO)

Source: https://baogialai.com.vn/doanh-nghiep-ky-vong-cuoc-cach-mang-hanh-chinh-post328346.html


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