Business Reforms in Vietnam
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Starting a Business: Vietnam made starting a business more difficult by requiring entrepreneurs to receive approval of the seal sample before using it.
Protecting Minority Investors: Vietnam strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing shareholder rights and role in major corporate decisions, by strengthening the ownership and control structures of companies and by increasing corporate transparency requirements.
Paying Taxes: Vietnam made paying taxes easier and less costly by streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees.
Trading across Borders: Vietnam made exporting and importing easier by implementing electronic customs clearance system.
Starting a Business: Vietnam made starting a business easier by reducing the time required to get the company seal engraved and registered.
Getting Electricity: The utility in Vietnam reduced the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works. Getting electricity was also made easier by eliminating the need to obtain a substation certification from the Fire Fighters Prevention Department for connections to the medium-voltage grid.
Getting Credit: Vietnam guaranteed borrowers’ right to inspect their credit data while the new credit bureau expanded borrower coverage, improving the credit information system.
Paying Taxes: Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate—and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. On the other hand, Vietnam increased the rate for social security contributions paid by employers.
Resolving Insolvency: Vietnam made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers.
Getting Credit: Vietnam improved its credit information system by establishing a new credit bureau.
Paying Taxes: Vietnam made paying taxes less costly for companies by reducing the corporate income tax rate.
Getting Credit: Vietnam improved its credit information system through a decree setting up a legal framework for the establishment of private credit bureaus.
Protecting Minority Investors: Vietnam strengthened investor protections by introducing greater disclosure requirements for publicly held companies in cases of related-party transactions.
Paying Taxes: Vietnam made paying taxes more costly for companies by increasing employers' social security contribution rate.
Labor Market Regulation: Vietnam abolished priority rules for redundancy dismissals or layoffs and increased the minimum wage.
Starting a Business: Vietnam made starting a business easier by allowing companies to use self-printed value added tax invoices.
Protecting Minority Investors: Vietnam strengthened investor protections by requiring higher standards of accountability for company directors.
Starting a Business: Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and tax license and by eliminating the need for a seal for company licensing.
Dealing with Construction Permits: Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment.
Getting Credit: Vietnam improved its credit information system by allowing borrowers to examine their own credit report and correct errors.
Paying Taxes: The government of Vietnam eased paying taxes by reducing corporate income tax rate.
Paying Taxes: Vietnam made paying taxes less costly for companies by reducing the corporate income and value added tax rates and eliminating the surtax on income from the transfer of land use rights.
Trading across Borders: Vietnam reduced the time for exporting and importing by implementing World Trade Organization rules for customs administration; increasing competition in the logistics industry also helped reduce delays.
Getting Credit: Vietnam’s public credit registry extended the coverage of historical credit information that it distributes from 2 years to 5, expanding its coverage of individuals and firms.
Getting Credit: Vietnam strengthened its secured transactions system by expanding the range of assets that can be used as collateral and allowing a general description of collateral in the security agreement.
Protecting Minority Investors: Vietnam strengthened investor protections by increasing disclosure requirements for both regular and related-party transactions.