Many barriers to business remain, says expert

Thien Thanh Sanitaryware joint company



Many barriers to business remain, says expert

Many policy drafting agencies tend to resort to the “prohibition” term for the business scopes that are hard to control and this has set up many barriers to the country’s business environment, said the director of the Central Institute for Economic Management.

Speaking at a seminar held in Hanoi Thursday to introduce the revised Enterprise Law, Nguyen Dinh Cung described the legal documents about allowable and conditional business areas as a maze. “We assume these documents would be a cubic meter if they are put together,” Cung said.

Cung said regulations for the prohibited business areas regarding dangerous games for children and their character development, social security and order, sexual products and scrap imports which can pollute the environment among others are unclear as there are a lack of detailed criteria and definitions.

Such regulations, according to Cung, can be interpreted differently by different market monitors depending on their worldviews, and this puts producers and traders at risk.

“Individuals at State management agencies can take advantage of different interpretations for their private gains,” he warned.

The regulation banning enterprises trading pollution-causing scrap imports, according to Cung, is also unreasonable. He wondered whether enterprises are allowed to trade domestic scraps or not.
Cung noted the Enterprise Law is ruled by 20 industry-specific laws and regulations, and ministries and sectors make full use of these laws to protect their interests.

However, chairman of the Vietnam Tea Association Nguyen Huu Tai disagreed with Cung.

Tai said food producers should strictly follow the regulations on safety and hygiene of the Ministry of Health rather than the Enterprise Law. He furthered a person owns a big piece of land in a downtown area of a city but he is not allowed to raise pigs on his land as he should observe the Land Law.

Dau Anh Tuan, head of legislation at the Vietnam Chamber of Commerce and Industry, said in support of Cung that the Enterprise Law would be invalid if industry-specific laws and regulations set too many business conditions.

Tuan said the inclusion of business lines with special requirements in the Enterprise Law or in decrees needs careful consideration as it cannot be kept updated with the reality.

Tu Hoang (http://english.thesaigontimes.vn)