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“Cut Red Tape and Go Digital: Businesses Yearn for Streamlined, Efficient Administrative Procedures”

11 May, 2025

Mr. Tu Tien Phat – ACB CEO speaks at the seminar – Photo: VGP

“We look forward to Resolution 68 becoming a reality.”

At the seminar “For private sector economic breakthrough according to Resolution 68 – What needs to be done immediately” held on May 9, Dr. Nguyen Si Dung asked Mr. Tu Tien Phat , CEO of Asia Commercial Joint Stock Bank ( HOSE : ACB ) , about his personal feelings when referred to as a “soldier on the economic front” in the context of the country promoting the private sector.

In response, Mr. Tu Tien Phat agreed that the image of entrepreneurs as soldiers is accurate in today’s volatile times, facing fierce competition, market pressures, and tariff issues. “The responsibility of entrepreneurs is to maintain their businesses. How to compete better and innovate more effectively is a daily concern,” said Mr. Phat.

According to the ACB CEO, when Resolution 68 affirms the central role of the private sector, this is both an honor and a responsibility. He emphasized: “We, along with many other private enterprises, have long awaited this Resolution. The implementation is happening very urgently.”

As a financial organization, ACB considers itself the financial backbone for businesses – those on the front lines of institutional reform. The bank’s responsibility is to provide cheap capital, build a modern payment digital transformation system, and enable businesses to operate with peace of mind. “We highly appreciate and view this as a significant innovation for Vietnam,” shared Mr. Phat.

The four biggest concerns of businesses

Recalling the core contents of Resolution 68, Dr. Nguyen Si Dung particularly emphasized the policies encouraging the formation of large “leading” enterprises, private corporations with regional and global reach. The resolution proposes a series of solutions such as exempting income tax for small and medium-sized enterprises for the first three years, facilitating access to public land, preferential credit mechanisms, and improving the model of the Small and Medium Enterprise Guarantee and Development Fund.

Mr. Tu Tien Phat appreciated the practicality of the Resolution as it closely addressed the concerns of businesses over the years: costs, procedures, markets, and green transition.

“Exempting corporate income tax for the first three years is a great policy. This is the survival stage for businesses, especially startups, and tax exemption will help nurture these enterprises,” he said.

Regarding access to public land, Mr. Phat acknowledged that the cost of leasing public assets remains a challenge for businesses. Issues of collateral assets, valuation, and tax transparency also hinder access to capital.

He also pointed out the reality that the credit guarantee mechanism for small and medium-sized enterprises is not yet effective. “In the initial phase, there was a guarantee, but gradually it became unrealistic. We believe that guarantees need to be closely aligned with the actual needs of businesses, not just limited to borrowing capital,” he added.

Another bright spot in the Resolution, according to Mr. Phat, is the orientation towards supply chain development. “The Resolution contributes to the growth of large enterprises, which then lead private enterprises in the country to participate in the supply chain. This is a very breakthrough policy,” he said.

The ACB CEO particularly emphasized the content of the green transition – an element that was first included in a Party Resolution on the private sector. The government has set a net-zero emissions target by 2050, but according to Mr. Phat, specific guidelines and credit frameworks are needed to make this a reality.

Discussing feasibility, Dr. Nguyen Si Dung asked: “What do businesses really need, and what can be implemented immediately?” Mr. Tu Tien Phat frankly answered: “What we most hope for is the reduction and digitization of administrative procedures. As long as there is a human factor, there will be risks. Only through thorough digitization and automation can we eliminate cumbersome procedures.”

The second issue is consistency in policy implementation across localities. “Businesses do not operate in just one province. If each place interprets and applies the law differently, businesses will face difficulties. We want consistency across the country to facilitate production and business activities,” he emphasized.

Dr. Nguyen Si Dung acknowledged: “We have just heard the representative of the private sector share very practical suggestions that are relevant and meet the market’s needs, especially regarding the green economy. If we don’t transition in time, we will lose a large market, especially Europe, which is applying increasingly stringent environmental standards. ”

Tung Phong

– 20:22 05/09/2025