Enterprises have complained that the Ministry of Industry and Trade has been extremely slow in doing away with troublesome business conditions in fields such as gas trading and auto imports.
At a conference held in Hanoi on Tuesday to collect comments from business associations, enterprises and organisations on regulations and administrative procedures for the industry-trade sector, business executives asked multiple questions about the conditions which are hindering business operations and market entry in many fields.
Deputy minister of Industry and Trade Tran Quoc Khanh said that the industry-trade sector has 447 administrative procedures at all levels, and that this is not a huge figure in a sector that accounts for over 80 percent of gross domestic product (GDP). He noted that the number of procedures is less important than their simple and transparent implementation.
A leader of the ministry’s legal department said at the conference that the procedures originated from 28 conditional business areas, twice the average number applied in the sectors managed by ministries and agencies.
However, some business conditions are controversial and business associations and firms have proposed lifting them. They include the rule in Decree 19 on trading liquefied petroleum gas (LPG), Circular 20 on auto import and distribution, and Circular 30 on formaldehyde content testing in fabric samples.
In late August, minister of Industry and Trade Tran Tuan Anh urged relevant departments to revise these regulations. Therefore, many LPG trading and auto businesses requested the ministry to give official replies.
Nguyen Thi Thuy Trang, representative of a LPG trader, said Decree 19 specifies that an LPG general agency must have storage facilities with a minimum capacity of 2,000 owned or co-owned LPG cylinders, 100,000 cylinders and 300 square meters of tank, and 10 agencies, and distributors must have contracts with a general agency or three wholesalers. She suggested removing the above conditions as they affect the business rights of firms in the sector.
Truong Thanh Duc, a member of the working group in charge of implementing the investment and enterprise laws, said a series of policies and rules which were drafted by ministries have become outdated because they require too much in terms of business scale. For example, Decree 109 on rice export regulates that firms must own warehouses able to hold 5,000 tonnes of paddy (unhusked rice) while Decree 83 on fuel trading are only in favour of large enterprises.
Duc stressed that companies will have to adjust the business scope and deal with business woes on their own instead of operating under the direct management and deep intervention of State agencies.
He said that the interference goes against the 2014 Enterprise Law and the Competition Law and the government’s Resolution 19 on support for businesses.
Auto trading firms complained about Circular 20. Small car importers questioned why they are required to be authorised by automakers, have agent contracts and auto maintenance certificates granted by the Ministry of Transport to import cars into Vietnam.
Vu Tuan, director of Thien An Phuc trading company, said Circular 20 would only benefit members of the Vietnam Automobile Manufacturers Association (VAMA) in the final months of this year when demand surges as they are eligible to import cars into Vietnam under Circular 20.
Responding to questions of firms and business associations, Khanh said the minister has abolished the decision on checks of formaldehyde content in imported fabric samples while regulations on LPG business and auto imports are still waiting for comments of relevant ministries.
Source: The Saigon Times
Key words : Trade ministry, delays abolition, of business conditions.
