Clear, stable laws, consistent enforcement.

Commenting on proposals to improve institutions and laws to achieve double-digit growth targets, the Vietnam Chamber of Commerce and Industry (VCCI) argued that the problem lies not in a lack of laws but primarily in the quality of regulations, the overlap between laws, and especially in enforcement. Businesses do not need many new laws, but rather clear, stable laws that are consistently enforced and predictable.

Citing specific examples, the Vietnam Chamber of Commerce and Industry (VCCI) stated that a manufacturing enterprise currently has to comply with dozens of different laws simultaneously, and conflicts often arise at the "intersections" between these laws, creating a procedural loop that leaves businesses confused and unsure where to begin. Therefore, VCCI recommends that the Ministry of Justice take the lead in reviewing the legal system along the entire business chain, rather than reviewing each law individually. This approach reflects the perspective of businesses and investors, helping regulatory agencies fully identify bottlenecks and overlaps.

Regarding stability and predictability, according to the Vietnam Chamber of Commerce and Industry (VCCI), businesses, especially foreign investors, have repeatedly complained about the rapid changes in legislation and the lack of transition periods. A law is often amended shortly after its enactment, before all necessary decrees and circulars are available. Businesses cannot plan their operations for 5-10 years without knowing how legal regulations will change in the next 1-2 years. This situation directly increases compliance costs, forcing businesses to constantly update and adjust internal processes, incurring opportunity costs, and delaying investments due to uncertainty about the legal environment. Therefore, VCCI proposes a minimum transition period of 12 to 24 months for changes in legislation that directly affect business operations, except in emergency cases. For large, long-term investment projects, a stability clause should be applied, committing to not retroactively applying adverse changes within a specified period.
According to assessments, the improvement of institutions and laws in recent years has seen strong innovation in thinking and development processes. There has been early and proactive preparation, demonstrating a proactive approach to institutional development, while also responding promptly to new situations and meeting the practical demands of life. Policies consistently prioritize the people and businesses, actively addressing difficulties and obstacles, contributing to the liberation of productive forces, and effectively mobilizing and utilizing resources for development. The review of legal documents has also been actively implemented, promptly identifying and addressing many conflicting, overlapping, and inadequate regulations, ensuring the consistency, uniformity, and feasibility of the legal system...

However, the development and improvement of institutions and laws still face many shortcomings and limitations, such as not fully meeting the requirements of reality. They are not yet compatible with the context of deep international integration and newly emerging domestic socio -economic issues. The program for drafting laws and ordinances still requires many adjustments and additions; some legal provisions are limited, inconsistent, impractical, and lack predictability.

These shortcomings and limitations have had a significant impact on socio-economic development in general, and on businesses in particular. Therefore, to promote rapid and sustainable business development in the coming period, contributing to achieving double-digit growth targets, perfecting institutions and laws is a key factor and a strategic breakthrough.

Improving institutions and laws should not be limited to drafting, amending, or increasing the number of legal documents, but should also focus on enhancing their quality, consistency, and effectiveness. Simultaneously, it is necessary to clearly define the roles of the private and state-owned economic sectors; thoroughly address overlapping, conflicting, and inconsistent laws and regulations; and link lawmaking with implementation, using the results of implementation as a measure of institutional quality.

Source: https://daibieunhandan.vn/luat-ro-rang-on-dinh-thuc-thi-thong-nhat-10412224.html