DIRECTIVE

ON FURTHER STEPPING UP THE IMPLEMENTATION OF THE ENTERPRISE LAW, THE DEVELOPMENT OF SMALL- AND MEDIUM-SIZED ENTERPRISES

The Enterprise Law, after four years of implementation, has created a breakthrough in the renewal of economic thinking as well as institutional and administratively-procedural reform for State management over enterprises. In parallel with the implementation of the Enterprise Law, various policies on encouraging and creating conditions for the development of private economy have been promulgated, thus removing problems and difficulties, strongly promoting the creativeness and production capacity of all people throughout the country, directing toward investment in production and business, and contributing an important part to economic growth and restructuring, as well as settlement of social issues.

However, there remain some shortcomings in the implementation of the Enterprise Law regarding both State management bodies and enterprises. The right to business freedom under law provisions has not yet been fully exercised; the realization of policies on support for the development of small- and medium-sized enterprises is still slow; there remains discomfort in the work of State management over enterprises; there still exists the situation where the issuance of legal documents is not prompted by production and business requirements, and sometimes, the ask-give mechanism re-appears; not a few procedures for market accession proved to be unreasonable, costly and long-lasting, especially in the conditional business lines; the plannings on development of business lines are unsuitable and need to be adjusted time and again, thus obstructing the emergence of new enterprises or investment expansion; sometimes, strict and complicated regulations are imposed just because of law violations by a few enterprises; not a few functional agencies, officials and employees laid down at their own will troublesome and complicated administrative procedures, thus making enterprises miss their oppoturnities and bear high costs.

Regarding enterprises, the level of legal understanding and sense of law observance of a section of owners and managers remain low; some enterprises still do business dishonestly and deliberately violate law provisions; the work of enterprises’ internal administration remains weak and non-transparent; small- and medium-sized enterprises fail to align and cooperate with one another, thus resulting in low business efficiency and competitiveness; enterprises’ associations are still perplexed about their operational modes and fail to provide practical support for the development of their members.

In order to overcome the above-said weaknesses, create a vigorous change in the improvement of investment environment and favorable conditions for enterprises to raise their efficiency and competitiveness, take initiative in international economic integration, and help more enterprises join in the market, especially in rural areas, the Prime Minister instructs:

1. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the provincial/municipal People’s Committees to strictly implement the provisions of the Constitution, stipulating that “organizations and individuals of all economic sectors may engage in production and/or business lines not banned by law”; to ensure that small- and medium-sized enterprises and private enterprises are treated equitably in investment, credit, taxation, land, trade promotion, import and export and other domains; and at same time, to immediately perform the following tasks:

a/ To expeditiously fulfill the tasks assigned in the Government’s Decree No. 90/2001/ND-CP on support for the development of small- and medium-sized enterprises, the Prime Minister’s Decision No. 94/2002/QD-TTg on the Government’s program of action for the implementation of the Resolution of the fifth plenum of the IXth Party Central Committee and Directive No. 08/2002/CT-TTg on raising enterprises’ efficiency and competitiveness. To report the implementation results to the Prime Minister before April 30, 2004.

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c/ In the course of compiling legal documents related to business environment, as well as enterprises’ interests and obligations, the opinions of the enterprises’ community must be gathered. When these documents are issued, to widely disseminate them among, and guide their implementation to, grassroots levels, associations and enterprises.

d/ Periodically, to organize dialogues between functional agencies and enterprises’ representatives on each subject, and between ministries and enterprises related to legal documents issued by such ministries, so as to receive new solutions proposed by localities and enterprises in order to supplement and perfect the legal documents, and at the same time, to settle promptly and thoroughly problems arising in the course of enforcing laws and policies.

2. The Ministry of Justice:

a/ In the first quarter of 2004, to promulgate a circular guiding the granting of legal consultancy practitioning certificates along the direction that all lawyers and persons who meet the prescribed conditions on professional qualifications and experiences may provide legal consultancy services.

3. The Ministry of Finance:

a/ In the first quarter of 2004, to submit to the Prime Minister the amendments and supplements to the Decision promulgating the Regulation on the establishment, organization and operation of credit guarantee fund for small- and medium-sized enterprises.

b/ To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, revising and evaluating current regulations which are restricting the increase of transparency in the management of enterprises’ finance, especially the regulations on financial reports, book-keeping, cost accounting, tax calculation bases as well as tax collection, payment and management methods.

c/ In the third quarter of 2004, to submit to the Government a draft decree prescribing business conditions for the services of debt claim, property evaluation and reliability assessment, regardless of economic sectors.

4. The Ministry of Planning and Investment:

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b/ In the first quarter of 2004, to submit to the Prime Minister for approval programs on the State’s support for small- and medium-sized enterprises prescribed in Decree No. 90/2001/ND-CP on support for the development of small- and medium-sized enterprises.

c/ In the third quarter of 2004, to submit to the Government a draft decree replacing Decree No. 77/1997/ND-CP on domestic BOT along the direction of diversifying forms of mobilization of domestic investment capital for infrastructure development.

e/ To coordinate with the Working Group for the implementation of the Enterprise Law and the concerned agencies in continuing to gather, review, evaluate and classify business licenses and propose handling measures to the Prime Minister.

f/ To assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Public Security in, revising and evaluating conditions for accessing the market applicable to assorted enterprises, including: dossiers, procedures, expenditures and time for business registration, approval of investment projects, seal making, tax code registration, invoice purchase, customs code registration,…   in order to amend, abolish or propose competent agencies to  amend or abolish unreasonable dossiers, procedures, conditions and expenditures, modifying  them along the direction of being simple and convenient for enterprises, rationalizing working procedures and enhancing the coordination among concerned agencies.

5. The Ministry of Labor, War Invalids and Social Affairs:

b/ To review and evaluate regulations and policies on the establishment and management of, as well as incentive for, job-training establishments; in the third quarter of 2004, to submit to the Prime Minister amendments thereto along the direction of simplifying the procedures for the establishment, diversifying training scope and forms, and raising job-training establishments’ autonomy and self-responsibility for training contents and quality, so as to actually encourage organizations, individuals and enterprises to participate in job training for laborers according to market demands.

6. The Ministry of Science and Technology:

a/ In the first quarter of 2004, to submit to the Government a draft decree amending and supplementing the Government’s Decree No. 45/1998/ND-CP detailing technology transfer, along the direction of simplifying procedures and strongly encouraging the investment in technological renewal by enterprises.

b/ To assume the prime responsibility for, and coordinate with the Working Group for the implementation of the Enterprise Law in, submitting to the Government in the first quarter of 2004 the amendments to the Government’s Decree No. 63/ND-CP of October 24, 1996 detailing industrial property, along the direction of replacing the granting of industrial property representatives’ cards with business conditions without permits and accelerating industrial property registration and protection in our country.

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7. The Ministry of Natural Resources and Environment:

- The guidance on realization of undertakings to permit the use of households’ and/or individuals’ residential land, special-use land, land lawfully transferred according to law provisions, and land assigned by the State, for which the land use levy has been paid and land-use right certificates have been granted, for production and/or business without having to shift to rent such land and pay land rents.

- The guidance on capital contribution with the land-use right value to enterprises operating under the Enterprise Law or joint ventures between enterprises operating under the Enterprise Law and foreign investors.

b/ In the second quarter of 2004, to submit to the Government a draft decree (amended) on order, procedures, conditions and competence to transfer land use right and convert land use purposes, along the direction of minimizing the order and procedures, creating convenience in order to boost economic restructuring and raise the land use efficiency.

8. The Ministry of Home Affairs:

a/ In the first quarter of 2004, to issue guidance on the implementation of the Government’s Decree No. 88/2003/ND-CP on the organization, operation and management of associations.

b/ To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Justice in, studying and submitting to the Government in the second quarter of 2004 the scheme on consolidating the system of the business registries nationwide so as to unify the business registration for all enterprises of all types.

9. From now to the second quarter of 2004, Vietnam State Bank to scrutinize, amend and supplement regulations on payment for goods and services imported from, or exported to, bordering countries, in compatibility with Vietnamese laws, agreements between Vietnam and bordering countries and practical conditions in border areas; and direct and support credit institutions in providing necessary financial services to accelerate goods exchange across the border.

10. The State Securities Commission to assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, submitting to the Government a draft decree on the issuance, issuance management and trading of unlisted securities to the public in the third quarter of 2004.

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a/ To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Justice and the Supreme People’s Court in, promulgating a joint circular on the determination of personal records of enterprise founders in the second quarter of 2004.

b/ To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Justice in, drafting a decree on business scope and conditions for civil and economic investigation services for submission to the Government in the third quarter of 2004.

12. The Prime Minister’s Board:

To assume the prime responsibility for, and coordinate with the concerned agencies in, submitting to the Prime Minister in the early second quarter of 2004 suggestions on the guiding thoughts and basic contents of two laws: the Enterprise Law to be applied commonly to enterprises of all types, regardless of economic sectors and the Law on Investment Promotion and Protection to be applied commonly to domestic and foreign enterprises investing in Vietnam.

13. The provincial/municipal People’s Committees, according to their vested powers and assigned responsibilities, to immediately perform the following tasks:

a/ From now to the end of the first quarter of 2004, to abolish the regulations on dossiers, order and procedures for business registration, which are contrary to the Enterprise Law; to abolish administrative documents on temporarily suspending the grant of business registration certificates and business licenses for business lines other than those banned from business by law; and to abolish business conditions contrary to promulgated laws, ordinances and decrees.

b/ From now to the second quarter of 2004, to scrutinize and revaluate  plannings on development of business lines of the localities; to abolish plannings  no longer necessary, and amend and supplement those unsuitable to the reality.

c/ In the second quarter of 2004, to promulgate regulations on the order for land assignment and lease to, and approval of investment projects (inside or outside industrial parks) for, enterprises along the direction of simplifying administrative procedures according to the “one-door” mechanism at local State administrative agencies.

d/ In the fourth quarter of 2004, to announce socio-economic development plannings, the overall and detailed plannings on land use and development of urban centers, industrial parks and raw-material zones for the interested people and enterprises to be provided with full and accurate information thereon.

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To formulate mechanism for the coordination, provision and exchange of information, concretizing the competence and responsibilities of the provincial/municipal Planning and Investment Services, economic-technical services and branches, the provincial-level police offices, State Inspectorate, tax departments, and market-control agencies, the offices of the People’s Committees of the provinces as well as cities, rural districts, urban districts and provincial capital and towns in the support for, and State management over, enterprises after their business registration.

f/ To direct the raising of capability of the agencies for promotion of development of small- and medium-sized enterprises; to assign the provincial/municipal Planning and Investment Services to act as the main body assisting the provincial-level People’s Committees in coordinating with the Ministry of Planning and Investment in performing the function of State management over promotion of development of small- and medium-sized enterprises.

g/ Every six months, to organize get-togethers of associations, enterprises’ clubs, enterprises and business households in the localities in order to remove in time difficulties and problems of the enterprises’ communities; and at the same time, to commend and encourage enterprises that record outstanding achievements and make great contributions to socio-economic development in the localities.

14. Enterprises’ associations:

a/ To formulate programs, plans and contents on their operation, focusing on creating the strength of enterprises’ communities in market development, taking initiative in the protection of enterprises’ interests in international economic integration, and raising the competitiveness of their commodity lines; to select and add capable, prestigious and enthusiastic cadres of enterprises to the associations’ leaderships; to raise the professionalism, practicality and efficiency of associations’ operation.

b/ To regularly sum up enterprises’ proposals on laws, mechanisms and policies, on modes of administration and management by the State agencies of various levels, as well as on the sense of responsibility of the contingent of public employees in the settlement of affairs related to enterprises, and propose them to competent State agencies.

c/ To disseminate and propagate the State’s undertakings, policies and laws to members; to disseminate and foster knowledge to members; to educate so as to raise the sense of law observance and responsibility towards the community and to build business morality and culture.

d/ To expand and raise the quality of services of business support and promotion which have direct impacts on members’ interests; to diversify the forms of  exchanging experiences and seek business opportunities; to support and act as the main body and bridge for members to align and cooperate with one another in developing their production and business and raising the competitiveness and integration capacity of each enterprise, each product as well as the entire economy; to fight signs of unhealthy competition and trade frauds on national and international scales.

15. Vietnam Chamber of Commerce and Industry shall coordinate with concerned State agencies and other enterprises’ associations in contributing to the perfection of the system of laws and policies and the improvement of business environment; to formulate and implement programs on training and fostering enterprise owners and managers; to link enterprises’ associations; to lay down business moral and cultural standards; to build models of joint ventures and cooperation among enterprises as well as between enterprises and research institutes, universities and scientists with a view to raising the competitiveness and bringing into full play all potentials of enterprises.

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a/ To raise their legal understanding and sense of law observance, build Vietnamese entrepreneurs’ business culture and morality: doing business in a honest manner according to law provisions, having the sense of responsibility towards the community and environmental protection, and caring for laborers’ life; to build and consolidate customers’ confidence.

b/ To formulate production and business strategies and plans suitable to their capacity and market demands; to raise labor quality, efficiency and productivity as well as competitiveness of enterprises.

d/ To take initiative in aligning with other enterprises, concerned associations and organizations in order to overcome difficulties and well exploit the capacity of each enterprise as well as the strength of cooperation in developing business network in domestic and overseas foreign market, to seize oppoturnities and overcome challenges in the course of international integration.

17. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of various levels and the heads of concerned units and organizations shall have to implement this Directive.

18. The Ministry of Planning and Investment to assume the prime responsibility for, and coordinate with the Government Office and the Working Group for implementation of the Enterprise Law in, monitoring and urging the implementation of this Directive; periodically, report the tempo, results and problems arising in the course of implementation, and propose handling measures to the Prime Minister.