Streamlining Administrative Procedures and Business Conditions: Urgent Reforms Needed

By 2025, all business-related administrative procedures will be fully digitized, allowing 100% online completion. Additionally, a plan to streamline and reduce 2,269 business conditions has been approved.

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Prime Minister Pham Minh Chinh has directed ministries, sectors, and localities to focus on completing plans to cut and simplify administrative procedures (APs) and business conditions (BCs) by 2025. The Prime Minister emphasized that reducing APs and BCs is an urgent task, directly impacting the investment environment and business operations.

Minimizing Paperwork

Following the Prime Minister’s directive, ministries and sectors are intensifying efforts to amend and supplement 485 legal documents to implement plans for cutting and simplifying 2,164 APs and reducing 2,047 BCs.

The government leader requires that by 2025, 100% of business-related APs must be completed online, with seamless operations and minimal paperwork. Ministries, sectors, and localities must upgrade their AP processing information systems to meet digitization requirements and the two-tier local government model. They must also complete data migration from pre-merger provincial systems, ensuring accuracy and completeness to support online public service delivery. The deadline for completion is November 2025.

Over the past period, the government, ministries, sectors, and localities have accelerated AP reform, putting citizens and businesses at the center. Mr. Le Tuan Phong, Deputy Director of the Department of Legal Document Drafting (Ministry of Justice), said the agency advised the government to issue Resolution 66.7/2025/NQ-CP. As a result, nearly 800 APs for various documents have been cut or replaced by extracting or using corresponding information from national and specialized databases. Specifically, many traditional documents have been replaced by data from national databases, such as citizen ID cards, birth certificates, health insurance cards, social insurance books, vehicle registration certificates, land use right certificates, and property ownership certificates. According to Mr. Phong, the resolution also expands the scope to other documents when the information is available in databases. These documents will then be announced and included in the reduction and replacement list.

Hanoi strives to improve administrative procedures for citizens. Photo: NGUYEN HUONG

The General Department of Customs (Ministry of Finance) is also reviewing and reforming APs during the drafting and revision of legal documents. This includes draft decrees on customs management of goods traded through e-commerce and inspection mechanisms for imported food quality and safety.

At the local level, Mr. Cu Ngoc Trang, Director of Hanoi’s Public Administration Service Center, said the city has announced many procedures eligible for full online processing and implemented support solutions. However, Mr. Trang noted that challenges remain due to pre-inspection regulations in specialized laws. Many procedures still require submission of originals or certified copies, disrupting online processes and forcing citizens to supplement documents in person. Therefore, the center proposes shifting to post-inspection for half of the procedures eligible for full online processing, allowing citizens to take responsibility for declared documents without certification.

Facilitating Citizens and Businesses

From the beginning of 2025, 1,007 APs and 222 BCs have been cut or simplified. The Prime Minister has approved plans to reduce and simplify procedures related to production and business activities across ministries and sectors, targeting 3,071 APs and 2,269 BCs. Some ministries with significant BC reductions include the Ministry of Industry and Trade (98), Ministry of Education and Training (262), Ministry of Agriculture and Environment (248), Ministry of Science and Technology (211), Ministry of Construction (181), and Ministry of Health (391).

The Ministry of Finance is vigorously implementing its AP reduction and simplification program to address challenges in production and business activities. The ministry has reviewed 363 BCs and proposed cutting or simplifying 124 conditions, achieving nearly 34%. The focus is on 20 conditional business sectors, including securities, insurance, finance, customs, taxation, accounting, and auditing. Of these, 120 conditions have been completely abolished, accounting for over 33%. Units under the Ministry of Construction are also drafting legal documents to implement AP reduction and simplification plans related to production and business activities within their management scope.

At the 10th session of the 15th National Assembly, the government is proposing amendments to the Investment Law. According to Minister of Finance Nguyen Van Thang, these amendments aim to promptly address institutional and legal challenges, reduce and simplify investment and business procedures, and facilitate citizens and businesses. Speaking at the session, Mr. Nguyen Van Thang said 50 conditional business sectors are expected to be cut. National Assembly delegate Le Dao An Xuan (Dak Lak Province) noted that the amended Investment Law allows investors in industrial parks, export processing zones, high-tech zones, digital technology zones, free trade zones, and international financial centers to enjoy special investment procedures. Under this mechanism, many procedures, such as environmental impact assessments, fire prevention, technology appraisals, and construction permits, are streamlined, enabling immediate project implementation.

Regarding conditional business management, delegate Nguyen Van Quan (Can Tho City) proposed changing the management approach by having the government only announce conditions and require businesses to register with commitments, instead of applying for permits as currently done. Mr. Quan believes this will eliminate the “ask-and-grant” mechanism, reduce procedures and costs for businesses, and enhance post-inspection by management agencies. He pointed out that issuing business condition certificates has been time-consuming, with strict input procedures but still resulting in non-compliance by businesses.

Mr. LE HUu NGHIA, Vice Chairman of Ho Chi Minh City Business Association (HUBA), CEO of Le Thanh Company:

Comprehensively Addressing Real Estate Challenges

In the real estate sector, legal obstacles to simplifying procedures and the business environment still need improvement, as over 5,700 projects are currently stalled. This is a major bottleneck hindering growth. If just 10% of these projects are unblocked, it will create a strong ripple effect across the entire construction, production, service, electricity, water, and interior design sectors. A significant current challenge lies in the land use fee mechanism. This policy has exposed many irrationalities, with excessively high fees placing considerable pressure on businesses and individuals. Many project dossiers have been delayed for years due to unclear financial obligations, while appraisal agencies are hesitant or even unwilling to sign off, effectively freezing land price determination, valuation, and financial obligation calculations. Typically, a project’s machinery operates for one year, but a five-year dossier process causes costs to skyrocket. All expenses are added to the final price, driving up housing costs while businesses face immense difficulties.

Mr. NGUYEN MINH DUC, trader at Thu Duc Agricultural Wholesale Market (Ho Chi Minh City):

Appropriate Roadmaps for Each Sector

We support the state’s policy of declaring and paying taxes instead of fixed taxes for millions of business households. However, many traders are currently confused about where to start and how to implement this correctly to avoid penalties or additional charges. While electronic invoicing is necessary, ensuring it aligns with actual business operations remains a challenge, especially for older traders with limited technology exposure.

We recommend that tax authorities, alongside simplifying procedures and regulations, develop tailored roadmaps for each sector and provide direct, hands-on guidance. This will allow traders time to familiarize themselves and practice step-by-step before official implementation.

Thai Phuong reported

Shifting from Pre-Inspection to Post-Inspection

Regarding conditional business sectors, during the amendment of the Investment Law, the National Assembly’s Committee on Economy and Finance proposed that the government continue reviewing, streamlining, and substantially cutting investment and business sectors and conditions. Only conditions essential for national defense, security, public order, morality, and community health should be retained. Additionally, a clear distinction should be made between individual professional conditions and organizational investment and business conditions, with a shift from pre-inspection to post-inspection.

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