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Institutional reforms aimed at boosting economic development
Tuesday, 21 July 2009
It is essential to double-check complex legal
documents that have caused difficulties to businesses to help them and other
people to boost economic development.
According to researchers and economic experts, institutional reforms
aim to gradually turn purely administrative institutions into economic
institutions and remove State management from production and business
management.
State management agencies should focus on dealing with more important
issues such as legislation, strategies and policies while facilitating business
and production operations, reducing the State’s investment in economic
establishments and enhancing community-based activities.
6,000
inappropriate documents need abolishing
The Deputy Head of the Central Institute for Economic Management
(CIEM), Nguyen Dinh Cung said that Vietnam should re-examine outdated and
overlapping legislation and streamline cumbersome procedures for people
involved in business and production activities.
At the moment, as many as 6,000 inappropriate and overlapping documents
should be abolished, such as those relating to business registration permits,
import-export procedures, customs procedures, certificates for urban land use
rights and foreign investment permits.
An international consultant, Scott Jacobs, said that the legal system
is an interface between management agencies and law enforcers. Vietnam could be
spending 25 percent of its GDP on unnecessary legal documents while for other
countries, it costs for just 5-10 percent of GDP.
Reform is
needed
According to senior economic expert Le Dang Doanh, after the global
financial crisis, Vietnam will need to pay more attention to create a stable
economic environment, mobilize internal strengths, cope with a reduction in
foreign investment and ensure people’s welfare for economic growth. “The core
of the issue is still formalities and human resources”, said Mr Doanh.
Mr Jacob pointed out that the RoK had successfully carried out
institutional reforms. After escaping the worst of the crisis, the RoK has
reached a strong economic growth rate, which is better than in the previous
years. The core of its rapid development is administrative reform. Within less
than a year, more than 6,000 documents were abolished and the RoK continues to
implement reforms to improve administrative formalities.
Regarding the quality of legal documents, Chu Son Ha, a NA deputy from
Hanoi stated that NA deputies have had little time to give their opinions on
the documents. This is just one of the reasons, why we have to amend our laws
so frequently.
Another reason is that there is no a standard criteria for compiling
legal documents. Mr Cung said that it is necessary to set up a standard system
when issuing new legislation.
8 criteria to assess the quality of legal documents