Licensing regulations put brakes on business

Tuesday, Oct 20, 2015 08:00

HA NOI (VNS)  — The granting of licences in the industry and trade has seen shortcomings though several administrative procedures had been simplified, Le Hong Lam, a representative from Viet Nam Bar Federation, said.

Lam gave an example of the tobacco processing industry which was granted a licence. However, the tobacco plantations and cutting of fibre for processing were not stipulated under the current laws and not granted licences from the local industry and trade departments.

"The regulations have caused difficulties to businesses and have become one of the shortcomings in the current administrative procedures," he added.

The units which are in charge of granting such licences also said that they faced difficulty in implementing State management rules as several administrative procedures were too common and caused a misunderstanding or were even in conflict with each other, Tran Thi Phuong Lan, deputy director of Ha Noi's Department of Industry and Trade told the conference held here yesterday.

The event, co-organised by the Ministry of Industry and Trade and The European Trade Policy and Investment Support Project (EU-MUTRAP), aimed to collect ideas on administrative procedures and regulations in the sector.

Lan said the Circular No 58 promulgated by the ministry stipulates that small food production units are not required to apply for certificates of food safety. However, the Decree No 38/CP stipulates that the initial small food production units would not need to apply for the licence.

She said the "initial" phrase in the sector has made it difficult for the department to decide whether to grant the licence or not.

Another case that has caused a headache is the granting of certificates for food processing units at supermarkets.

"Both, the departments of Industry and Trade and Agriculture and Rural Development, do not know who will have the main responsibility," she said, adding that there was a lack of communication between management agencies.

Sharing these ideas, Nguyen Sinh Nhat Tan, head of the ministry's Legal Department said the publicity with regard to some administrative procedures has not been effectively done to several businesses.

Tan affirmed that the ministry has been extremely transparent and clear in each administrative as well as steps for implementation. However, it has not been strictly implemented in localities.

"Time for resolving administrative procedures is stipulated. If ministries and localities refuse to grant licences, they are required to provide reasons in documents," he said.

By October 10, the ministry had managed 361 administrative procedures of which 50 are public services. He said, most of the public services would be upgraded to level 3 or 4 in 2016. It means that almost all applications would be implemented online to save time and costs for businesses.

The ministry also published all administrative procedures on its website: — VNS

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