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PM orders sharp cuts to business conditions for double-digit growth

Prime minister Le Minh Hung has ordered sweeping cuts to business conditions and administrative procedures to support Vietnam’s push for double digit economic growth.

PM orders sharp cuts to business conditions for double-digit growth - 1
Prime Minister Le Minh Hung speaks at the meeting on April 13 (Photo: VNA)

Chairing a meeting of the Government’s permanent members in Hanoi on April 13, Hung called for the removal of unnecessary regulations and faster administrative reform following conclusions from the Party central committee’s recent plenum.

Vietnam currently has 198 conditional business lines and 4,603 business conditions. Ministries and agencies have been instructed to cut at least 30 per cent of conditional business lines, equivalent to about 60 sectors, and eliminate all redundant requirements. The plan also targets a 50 per cent reduction in both administrative processing time and compliance costs.

Hung said improving the business environment and reducing regulatory burdens were key priorities, many of which fall within the authority of ministries and could be implemented immediately.

Despite a second quarter deadline, he urged faster progress, requiring ministries to complete reforms as early as possible without compromising quality.

Deputy prime ministers, together with the ministry of justice, the ministry of public security, the ministry of home affairs and the government office, have been tasked with working directly with ministries to finalise detailed reform plans. These will cover administrative procedures, business conditions, conditional sectors and decentralisation.

By April 20, ministries must submit reform proposals, which will be reviewed for approval within the month.

Ministers have been instructed to personally oversee comprehensive reviews of procedures under their authority, ensuring cuts, simplification and greater decentralisation, while reducing the number of conditional business lines and requirements.

The ministry of justice and the government office will strengthen oversight of administrative procedures, holding ministers accountable for failing to remove inappropriate regulations. Authorities are also required to incorporate feedback from businesses and industry associations.

On decentralisation, Hung called for further delegation of powers from central to provincial and grassroots levels, alongside improvements in the quality of local officials through targeted training and personnel support.

He also instructed ministries to complete and integrate national databases, particularly those related to businesses, citizens and economic management, to ensure that information is provided only once and reused across systems.

Regarding resolution 57 issued on December 22, 2024 on science, technology and digital transformation, the ministry of public security has been tasked with urgently submitting detailed implementation plans in line with central directives.

Source: VNA
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