DIRECTIVE

ON FURTHER CREATING FAVORABLE BUSINESS ENVIRONMENT FOR ENTERPRISES

Over the past 2 years since the Enterprise Law took effect, the production and business environment has been considerably improved. The Government has made one step forward in the administrative reform, especially in the fields of business registration and customs procedures; abolished many licenses which obstruct enterprises production and business activities; promulgated various mechanisms and policies for investment and export promotion, credit mechanism and tax policy perfection, thus creating favorable conditions for investment and development of production and business of all economic sectors.

However, the promulgated policies remain incomplete and sometimes made without harmony among agencies, thus causing difficulties to enterprises activities. In the course of implementation, the provisions of legal documents have not been strictly observed here and there or now and then, giving rise to complaints and even some cases which have been left unsolved for a long time, affecting the State’s managerial work as well as production and business results and prestige of enterprises.

With a view to further removing difficulties and creating favorable conditions for enterprises of all economic sectors to develop their production and business in the spirit of the Resolution of the Ninth Party Congress; contributing to the fulfillment of the 2001 and 2002 plans, the Prime Minister hereby instructs:

1. The Ministry of Planning and Investment:

- To coordinate with the Working Team for enforcement of the Enterprise Law and the ministries, branches as well as localities in continuing to revise the promulgated documents and submit to the competent authorities for annulment or amendment and/or supplement the documents which no longer conform to the Enterprise Law and cause difficulties to enterprises production and business activities.

- In December 2001, to submit to the Prime Minister for promulgation the decree on sanctioning administrative violations in business registration.

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- To soon connect the enterprise information network of the provincial/municipal business registration agencies with the Ministry’s Enterprise Information Center.

2. The Ministry of Finance:

- Before March 2002, to study and additionally promulgate a detailed list of taxes on import/export goods with appropriate tax rates. For raw materials and accessories which cannot be produced at home yet and must be imported and which account for high proportion in production, the appropriate tax rates are required, avoiding the situation where import tax rates for finished products are lower than those for raw materials or assembly accessories.

- To amend the mechanism and time limit for the refund of value added tax to enterprises, especially medium- and small-sized enterprises, and enterprises manufacturing low-value goods so that the use of enterprises capital shall not be affected.

- In the course of elaborating the scheme on amending and supplementing several tax laws for submission to the National Assembly, it is necessary to study and amend the value added tax rates to be suitable to each type of goods so as to encourage domestic investment as well as production and business development.

- To submit to the Government the plan on handling the enterprises outstanding debts. Before March 2002, to submit to the Prime Minister the scheme on setting up a company for sale and purchase of debts and assets of the State enterprises.

- In the first quarter of 2002, to submit to the Government the financial management mechanism applicable to people - founded enterprises, especially to amend the financial report form issued together with Decision No. 167/2000/QD-BTC of October 25, 2000, ensuring the State management on the one hand and the simplicity for implementation by enterprises on the other hand.

3. The Ministry of Trade:

- To coordinate with the Ministry of Planning and Investment and the concerned ministries and branches in applying export promotion measures mentioned in the Government’s Resolution No. 12/2001/NQ-CP of November 2, 2001 on its October 2001 regular meeting.

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- To direct the market management bodies to more effectively preclude the production and circulation of fake and contraband goods.

- To coordinate with the General Customs Department in revising documents guiding the implementation of Decree No. 20/1999/ND-CP of April 12, 1999 on commercial provision of goods-assessment services in order to amend and/or supplement inconsistent points.

4. The State Bank of Vietnam to study the mechanism for simplifying the lending procedures for people-founded enterprises, especially for export goods-producing enterprises, so as to create favorable conditions for them to have access to credit capital sources.

5. Before March 2002, the Government Commission for Organization and Personnel shall study and submit to the Prime Minister the Regulation on the establishment and operation of branch and trade associations, provided that such associations not only represent enterprises but also play the role of negotiating and regulating the production scope, prices, product quality and market distribution,...

6. The Ministry of Public Security to direct the economic security force, the economic police and the investigation police in reorganizing the work of examination and investigation without criminalization of errors in economic transactions.

7. The Ministry of Finance, the State Bank of Vietnam and the General Department of Customs to express in writing the comments made by representatives of the above-said agencies at the meeting between the Prime Minister and enterprises on September 13 and 14, 2001, including explanations of mechanisms and policies, as well as views on handling of specific cases, then publicly announce them for enterprises to have basis for implementation.

8. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities to organize the strict implementation of the Prime Minister’s Directive No. 22/2001/CT-TTg of September 11, 2001 on reorganizing the work of inspection and examination at enterprises.

9. The ministries, branches and localities:

- To expeditiously revise, according to their respective managerial functions and tasks, mechanisms and policies related to production and business activities of enterprises. According to their respective competence, to take initiative in amending, supplementing or promulgating new mechanisms along the direction of removing difficulties and creating favorable legal framework for enterprises to develop their production and business. In the course of compilation of mechanisms and policies relating to enterprises activities, the compiling agencies must necessarily gather comments from enterprises through Vietnam Chamber of Commerce and Industry.

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10. The Ministry of Justice to coordinate with the Government Office in well organizing the propagation of laws for enterprises to know, understand and implement them. The ministries, branches and localities must, when promulgating legal documents, publicly announce them on the mass media so that enterprises can have access thereto.

The heads of the ministries and branches and the presidents of the People’s Committees of the provinces and centrally-run cities shall be held responsible before the Prime Minister for the delay in amending and/or supplementing inappropriate mechanisms and policies, for promulgating mechanisms and policies contrary to law provisions, causing obstacles to enterprises production and business development, or for failing to definitely settle enterprises complaints, or settling them in contravention of law provisions. All damages caused by State agencies to enterprises of all economic sectors must be compensated for according to law.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Directive.

PRIME MINISTER




Phan Van Khai