Business condition abolishment ineffective: PM
Business condition abolishment ineffective: PM
The reduction of business conditions by some ministries has yet to lead to smooth and efficient operations among enterprises as many unreasonable conditions remain in place, stated Prime Minister Nguyen Xuan Phuc.
At a teleconference with leaders of localities today, July 4, on the country’s socioeconomic performance in the first half of the year, Minister of Planning and Investment Nguyen Chi Dung said the Government had earlier asked ministries and agencies to halve business and investment conditions by June 30. However, these ministries and agencies had failed to fulfill their duties, the local media reported.
For example, some business conditions set by the Ministry of Industry and Trade have hindered the operations of enterprises, including regulations on the permissible levels of formaldehyde and aromatic amines in apparel products and the requirement that star-ranked hotels and tourist sites be licensed to sell alcoholic products.
These regulations have been repeatedly proposed for removal, but they remain in force, Dung noted.
At the teleconference, the Government leader also complained of the extremely slow disbursement of public investment and official development assistance loans, meeting only 37% of the plan for the 2016-2019 period.
Minister Dung admitted that many ministries and localities were not determined enough to reach the disbursement target and seemed hesitant in assuming responsibility.
He proposed that by September 30, projects with a capital disbursement rate of less than 30% should not be allocated more capital next year.
PM Phuc also listed the country’s considerable achievements in diplomacy and integration, such as the signing of the European Union-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement.
Despite global economic volatility, Vietnam still reported positive economic development, including a stable macroeconomy, inflation under control and high gross domestic product (GDP) growth and import-export turnover.
According to a report by the Ministry of Planning and Investment, the nation’s GDP expanded 6.76% in the first six months of 2019, lower than that seen in the same period last year but higher than those registered in the 2011-2017 period, while 70% of economies around the world, including the most developed ones, reported a slowdown, Nguoi Lao Dong newspaper reported.
The agriculture sector grew 1.3% as a result of the spread of African swine fever, well below the 3.07% seen in the first half of 2018. To date, one-tenth of the pigs in the country have been culled, PM Phuc remarked.
The average consumer price index in the first half of the year rose by 2.64% year-on-year.
In addition, US$9.1 billion in foreign direct investment was disbursed, up nearly 8% from the same period last year. The country’s export revenue reached US$122.4 billion, while import turnover was US$120.8 billion, resulting in a trade surplus of US$1.6 billion.
During the six-month period, the country had nearly 67,000 newly established enterprises, up 3.8% year-on-year.
PM Phuc noted that the hot weather has affected the production of farm produce and increased the number of forest fires, including serious forest fires in Ha Tinh that broke out several days ago.
He also asked the relevant ministries and agencies to cement relations with large importing markets amidst Sino-U.S. trade tensions.
Urban planning and public asset auction, management and use still reveal shortcomings.
As for social issues, school violence, child molestation and drug trafficking cases remain rampant, the prime minister added.
Despite a decline in the number of traffic accidents as well as fatalities and injuries in these accidents, the period saw many serious accidents.
HCMC sees robust developments
Speaking at the teleconference, HCMC Chairman Nguyen Thanh Phong urged the Government to approve a resolution to give HCMC more autonomy on compensation, site clearance and resettlement issues to shorten the time needed to complete the job and accelerate the progress of projects, according to Tuoi Tre Online newspaper.
The municipal chairman also suggested the early approval of equitization plans for State-owned enterprises in HCMC in the 2019-2020 period.
Phong expected the prime minister to attend a meeting with the HCMC government later this month to help remove obstacles hindering the city’s major projects.
He also reported the city’s performance in the first six months of the year. Its regional gross regional domestic product amounted to over VND611.5 trillion (US$26.3 billion), marking a growth rate of 7.86%. The city’s tax revenue reached VND193.31 trillion, reaching 48.43% of the target and up 7.04% year-on-year.
During the period, 21,600 enterprises were established in the city with total registered capital of more than VND342 trillion, while 2,380 others were shut down or dissolved.
Phong also reported that the city attracted US$3.2 billion in foreign direct investment in the first six months, marking an increase of 20% over the year-ago period.
In the second half of the year, the city will enhance its inspection, assessment and supervision of administrative reforms. It will also act on the Government Inspectorate’s conclusions on the execution and management of projects and legal compliance in the planning, construction and land management of the new urban area on Thu Thiem Peninsula in District 2.
There will be specialized seminars to seek solutions to the city’s pressing issues, such as those on the study and application of artificial intelligence; service development and urban infrastructure planning; training human resources to meet international standards; and plans for the embankments of the Saigon River and other rivers and canals in the city.
