The Annual Cost of Administrative Procedures Compliance Exceeds 120 Trillion Dong

Prime Minister Pham Minh Chinh has just signed Official Dispatch No. 69/CD-TTg on May 22, addressing ministers, heads of ministerial-level agencies, and chairpersons of provincial People’s Committees regarding the focus on completing the review, reduction, and simplification of administrative procedures (APs).

According to the Official Dispatch, as of May 20, ministries, sectors, and localities have compiled, standardized, and published a total of 6,358 administrative procedures (including 5,801 procedures under the management of ministries and sectors, and 557 procedures prescribed in local legal documents).

Out of the total, 4,377 procedures (68.8%) are related to production and business activities, along with 8,977 business conditions, 3,086 products and goods subject to specialized inspection, 886 technical standards and norms related to the implementation of production and business administrative procedures, and 640 reporting regimes for enterprises. Notably, the total annual compliance cost for these procedures exceeds VND 120 trillion.

To promptly reduce and simplify administrative procedures, business conditions, processing time, and compliance costs to meet the goals and requirements set by the resolutions of the Politburo, the Government, and the Prime Minister, the heads of ministries, agencies, and provincial People’s Committees are requested to focus on completing the update and publicity of the compilation and standardization of administrative procedures, business conditions, and compliance costs under their management on the National Database on Administrative Procedures before June 10.

The Prime Minister urges the swift review, reduction, and simplification of administrative procedures related to production and business activities, ensuring a reduction of at least 30% in processing time, 30% in compliance costs, and 30% in business conditions by 2025, with further significant reductions in subsequent years.

“Minimize intervention and eliminate administrative barriers, the ‘license – grant’ mechanism, and the ‘if unable to manage, then ban’ mindset. People and businesses are free to conduct business in sectors that are not prohibited by law. Shift strongly from pre-inspection to post-inspection in tandem with enhanced inspection and supervision; shift the management of business conditions from licensing and certification to the implementation of business condition declaration and post-inspection, except for a few sectors that must obtain permits as prescribed by international law and practice,” emphasized the Prime Minister.

The Official Dispatch also mentions the need for transparency, digitalization, automation, and the application of artificial intelligence and big data in executing administrative processes, especially in enterprise establishment and dissolution, land, planning, investment, construction, taxation, customs, and insurance, among others.

As per the Prime Minister’s directives, 100% of internal administrative procedures should be reviewed, reduced, and simplified in accordance with new legal provisions on decentralization, delegation, and authorization, as well as the organization of local authorities into a two-tier model, following the approved roadmap.

Ensure that 100% of administrative procedures related to businesses are conducted online, seamlessly, transparently, and efficiently, minimizing paperwork. Implement administrative procedures independently of administrative boundaries within the provincial scope, with completion expected in 2025.