Licensing grip over businesses slackened?
To All Khmer look and see how the Vietnamese culture of cheating and thievery
work here and in Cambodia when they have applied in the general election in
Cambodia with fake "Cambodian names & ID " enabling to the CPP to win trough
FRAUD AND GET 90 SEATS ?
Again here are my solutions to this problems:PRESIDENT REAGAN INSISTS THROUGH
10 UN RESOLUTIONS1. that the KR regime must not allowed to come back to power
in Cambodia2. that Vietnam cease her occupation of Cambodia followed by total
withdrawal of Viet troops from Cambodia.
SEE THE VIETNAMESE :
SOK KONG IS A VIETNAMESE
YEAY PHAN IS A VIETNAMESE
A VIETNAMESE IS A THIEF ,A LIAR, CHEATER, KILLER ....( BOOK BY T.TERZANI Giai
Phong"
People wait for their turn at the HCMC Department of Planning and Investment.
Many licensing and permit requirements lose their validity today with the
passing of a deadline by which all government agencies were to bring their
licensing in line with the 2005 Enterprise Law.
Nguyen Dinh Cung of the Central Institute for Economic Management (CIEM) says
that starting today, business licenses and conditions are only considered legal
if they are recognized by laws or government decrees, which means those
specified in bylaws issued by ministries and local authorities are no longer
valid.
Enterprises can file lawsuits against agencies that ask for unnecessary
business licenses, and obtain compensation for any losses incurred thereof,
Cung adds.
According to the Enterprise Law that was passed in 2005, besides business
activities that are completely banned, and those that can be conducted
unconditionally, there are others that have to conform to certain conditions
stipulated by the law.
However, the law does not authorize ministries and local authorities to set
conditions for a business activity, notes Tran Huu Huynh, head of the Vietnam
Chamber of Commerce and Industry’s Legal Department.
Ministries have been stipulating many conditions for businesses through their
circulars.
Huynh says that many licenses and conditions not stated in laws and government
decrees should have been abolished when the Enterprise Law took effect in 2006.
A decree issued last year gave ministries and state agencies more time to
review the business conditions and get rid of those that were unreasonable, but
few such conditions have been reduced by the deadline that falls on September 1.
Many conditions should be invalidated or amended, he says, citing some examples
including approvals required for promotional programs or permits granted to
mend tire punctures.
Cung told Thanh Nien that the number of licenses and permits that enterprises
have to obtain has increased rapidly since 2000, alongside the increase in
business activities subject to specific conditions.
A recent study carried out by CIEM shows that business activities falling under
the purview of numerous requirements imposed by various government agencies
number nearly 400. And the documents proving compliance with the requirements
are also of similar magnitude.
At least 50 of these activities have their operating conditions listed in
different documents issued by different agencies, leading to inconsistencies
and confusion, Cung observed.
Furthermore, many conditions are not clearly defined and most of them can be
confused with the ethical code of conduct for doing business.
For example, one condition stated for employment agencies is that they have
employees of good virtue and provide assistance to visitors who are disabled,
elderly, children and pregnant women, he said.
The CIEM study found out that it takes more than 400 days to finish all the
paperwork for an investment project outside industrial parks, with an average
of 314 documents required to be filed.
Huynh said if procedural reforms that stem from the decree are successful, it
will help businesses save more than US$1 million a year. According to him, half
of the 400 licenses and certificates should be eliminated as of today.
Authorities in the same boat
It is not just businesses, but authorities also have difficulties with
licensing, says Pham Ngoc Van, head of the Dong Nai Province Department of
Planning and Investment’s Business Registration Office.
There are many documents concerning business conditions that are irrational but
the office still has to follow the procedures strictly, she says.
She suggests a fresh effort to ensure that legal documents are created with
clear purposes and be considered very carefully before they are issued.
Dinh Van An, director of CIEM, says the institute is going to propose that the
government withdraws 43 such irrational documents this month.
According to the World Bank’s Doing Business in 2008 report, Vietnam is ranked
63 out of 178 countries in “Dealing with Licenses.”
Foreign firms say still entangled in red tape
While foreign firms operating in this country agree there has been an
improvement in the general business climate, paperwork continues to be a
vexatious problem.
The CEO of Ho Chi Minh City-based business consultancy Star Corporate Vietnam,
Chris Jones, says the central Department of Planning and Investment (DPI), for
instance, tends to be highly inflexible when it comes to leases.
An investor’s license application may include a signed lease, but if the
landlord is a Vietnamese company, the DPI requires that company’s business
license to show it can rent out its premises.
Meanwhile, the Housing Law allows a Vietnamese entity to sublease part of its
premises. It does not call for a license if leasing office space is not part of
the business’ normal activity.
Jones says that if this hurdle is somehow overcome, the DPI then asks for the
landlord's certificate of ownership or land use rights and the building
construction contract.
When such demands become “impossible to fulfill,” the department simply asks
the investor to find new premises if it wants a license.
Jones also laments that though a license should legally be issued within 15
days, this “has never been met because the time is stated to be from the time a
dossier is ‘accepted’ by the DPI.”
At a recent conference between investors and officials from several southern
provincial DPIs, Ngo Thanh Tung, senior partner at Vietnam International Law
Firm, told Thanh Nien Daily it seems easier and quicker to apply for licenses
in the north than in the south.
Frederick Burke, managing partner of Baker & McKenzie law firm, said for
various reasons Japanese and Korean investors tend to open high-tech factories
in northern locations, and this is an issue southern authorities should ponder.
But Phan Huu Thang, director of the Department of Foreign Investment rejected
the claim as unjustified, saying the south has always attracted massive FDI
projects worth billions of dollars and Binh Duong, Dong Nai and HCMC are
leading localities for foreign investment.
He conceded, however, that there are discrepancies between the law and WTO
commitments that need to be sorted out.
Reported by Vinh Bao
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