PM orders elimination of 30 per cent of unneeded business conditions

PM orders elimination of 30 per cent of unneeded business conditions

Prime Minister Phạm Minh Chính has issued a directive urging a decisive push for administrative procedure reforms and improvements to the business environment.

Prime Minister Phạm Minh Chính has issued a directive ordering a reduction of processing time for administrative procedures by at least 30 per cent. 

Directive No. 22/CĐ-TTg also calls for cutting business compliance costs by a minimum of 30 per cent and eliminating 30 per cent of unnecessary business conditions.

The directive pushes ministries, agencies and local authorities to review and implement substantial cuts and simplifications in regulations and administrative procedures related to investment, production and business activities.

All business-related procedures must be digitised to ensure seamless, uninterrupted and efficient operations.

The Government Office will coordinate with relevant agencies and localities to develop and submit to the Government for promulgation a Resolution on the Reduction and Simplification of Administrative Procedures in production and business for the 2025–2030 period. The resolution will be completed by March 31.

The directive also emphasises the timely and transparent publication of administrative procedure information on the National Database on Administrative Procedures.

A critical component is the prompt and effective resolution of business challenges and concerns. By March, all outstanding issues identified in meetings with state-owned enterprises, private businesses, small and medium-sized enterprises and major foreign direct investment (FDI) investors must be addressed conclusively.

To drive innovation and technological advancement, the Prime Minister has also highlighted the implementation of bold measures. The move aims to promote the digital transformation and enhance workforce quality, strengthening Việt Nam’s competitiveness on the global stage.

Recognising the financial pressures faced by businesses, the directive includes tax relief and extensions to stimulate private economic growth and mobilise resources for development investment.

The Ministry of Finance has been instructed to coordinate with other ministries, agencies and localities to develop decrees extending the deadlines for value-added tax (VAT), corporate income tax, personal income tax and land lease payments in 2025.

A decree on the extension of the special consumption tax for domestically produced and assembled automobiles also must be submitted to the Government by March 15.

The ministry is also tasked with researching and proposing an expansion of tax reduction subjects and VAT cuts for the second half of 2025 and 2026, which must be presented to the Government by the same deadline. 

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