Businesses help flag obstacles in administrative reform: VCCI

Businesses help flag obstacles in administrative reform: VCCI

According to the Việt Nam Chamber of Commerce and Industry (VCCI), in just under two months, there were 220 reports from businesses flagging obstacles across laws, decrees and circulars.

Workers at a factory in Bắc Ninh Province. — Photo baochinhphu.vn

Companies have been reporting issues with the Government's administrative reform, noting that in practice, many procedures are still opaque and often overlap with each other, hampering production and business activity. 

According to the Vietnam Chamber of Commerce and Industry (VCCI), in just under two months, there were 220 reports from businesses flagging obstacles with laws, decrees and circulars.

Problems cluster around taxation, invoicing and administrative procedures that are unclear, unnecessary or lack implementation guidance, creating hurdles in day-to-day operations. 

The VCCI cites the reports as noting that paperwork still dominates and lags behind the digital transformation push. Some rules directly intrude on the freedom to do business, such as caps on maximum promotional discounts or provisions governing contract-based passenger transport. 

Bottlenecks also arise from new documents as well as older ones, driving up costs, lengthening timelines and eroding competitiveness, according to the chamber.

A representative from a wood-processing firm in Bình Dương said that to obtain a licence to produce supporting industry products, the company had to submit nearly 10 different dossiers, many of which had already been filed with other agencies.

“We completed the e-filing and still had to submit paper copies. The process dragged on for more than three months, delaying an export contract,” a company representative said.

Promotion procedures also leave retailers exhausted. A supermarket operator said: “Every time we roll out a major promotion, we must notify authorities and wait for approval. In a fast-moving market, that delay costs us a competitive edge at home.”

Beyond being cumbersome, many provisions lack transparency, leaving businesses unsure of the correct course of action. 

According to the Việt Nam Real Estate Association, guidance remains unclear as to whether land-lease rights with annual rental payments can be used as collateral. This makes it difficult for enterprises in industrial parks to obtain bank loans because their largest asset is not clearly recognised in law.

VCCI’s Deputy Secretary-General Đậu Anh Tuấn said legal reforms for business must be faster and more comprehensive, because many procedures remain overlapping, contradictory or outdated. 

Despite multiple rounds of reviews to resolve conflicts in laws on investment, land, construction and the environment — efforts that have simplified some procedures and reduced certain costs — the legal framework remains complex, opaque, fragmented and not fully aligned with reality, according to Tuấn.

Experts said that while the Government has worked to improve the business climate, overlaps and inconsistencies persist and pose major barriers for small and medium-sized enterprises, which make up the bulk of the economy. 

One typical example is the licence for supporting industry production, which demands numerous documents and paper copies even where e-filings exist, underscoring the gap between policy and practice.

Secretary-General of the Vietnam Association of Seafood Exporters and Producers Nguyễn Hoài Nam listed barriers holding firms back, from taxes and specialised inspections to labelling, traceability and logistics. 

As an example, he cited seafood by-products, for which deep processing incurs 10 per cent VAT but preliminary processing does not. This means that companies are forced to split invoices and consignments in ways that do not reflect the goods’ true nature.

In addition, a ban on mixing imported and domestic raw materials in the same container raises logistics costs and risks contract losses, Nam said.

As for food safety management, Nguyễn Hồng Uy from EuroCham said that tightening oversight after several high-profile counterfeit goods cases is necessary, but complex and non-transparent procedures can inadvertently burden compliant businesses, while counterfeit goods still slip through.

Resolving legal bottlenecks is both urgent and difficult. It requires close coordination among regulators and a balance between firm oversight and genuine facilitation for business. 

Tuấn emphasised that a legal environment that is transparent, stable and workable is a key driver of economic growth and sustainable development.

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