Law imposes annual restriction on inspections and audits
Loosening the Noose: Vietnam's Drive to Ease Regulatory Burdens
Hey there! Vietnam's business scene is gearing up for a transformation thanks to the National Assembly's latest efforts. The newly-adopted Resolution 198 sets a new standard for promoting private sector growth by outlining mechanisms to cut back on needless inspections and audits.
Here's the lowdown: From now on, no business—be it an enterprise, household, or individual operation—will face more than one inspection a year. Unless, of course, there's concrete evidence pointing to legal violations. Moreover, regulators are discouraged from re-inspecting the same issue within the same year to eliminate overlap and expedite operations.
Businesses in the country have long grumbled about the excessive inspections by various government agencies, with some claiming to have been checked repeatedly on the same issue by multiple authorities within a single year. These relentless checks have led to wasted time, extra unofficial costs, and dampened enterprise spirit.
The new approach is part of an overarching shift in regulatory mindset, moving away from micro-management and focusing more on providing services and streamlining processes. The goal is to reduce administrative red tape, boost predictability, and encourage economic growth.
According to a representative from the agricultural product enterprise Mebipha Production and Trading Company, the relentless inspections have been a persistent headache. They're hopeful that this new policy framework will simplify regulatory procedures and minimize operational disruptions.
The General Director of Xuân Nguyên Group, Lư Nguyễn Xuân Vũ, chimed in, acknowledging that the recent policy shift signals a more constructive attitude towards the business community. "Entrepreneurs and businesses are crucial for national development, and there's evident recognition of this," he said.
The Vice Chairman of the Hò̀ Chí Minh City Business Association, Đinh Hồng Kỳ, highlighted the past's regulatory uncertainties as a deterrent for some enterprises looking to expand. He remained optimistic that the recent resolutions could foster trust between businesses and institutions, thereby improving the overall business climate.
Resolution 198 harmoniously jives with other significant policy initiatives, such as the National Assembly's Resolution 68 and the Government's Resolution 139. Together, these reforms symbolize a broader strategy emphasizing post-check mechanisms over pre-emptive control and fostering business activity rather than restricting it. This overhaul is expected to enhance regulatory efficiency and pave the way for the private sector to flourish. Keep an eye on this evolving landscape! 🌱🏢🚀
A joint task force during an inspection at a food company in HCM City. - VGP Photo
- The newly adopted Resolution 198 in Vietnam's National Assembly aims to reduce administrative red tape and promote private sector growth by easing the frequency of inspections, especially for businesses in the environment sector that are dealing with AI and finance.
- With this new policy shift, businesses in the climate and AI sectors can expect to encounter a single inspection per year, unless there's evidence of legal violations, thereby eliminating overlap and minimizing operational disruptions.
- Forward-thinking corporations, such as the agricultural product enterprise Mebipha Production and Trading Company and Xuân Nguyên Group, welcome this regulatory change, viewing it as a sign of a more constructive relationship between the government and the business community.
- In line with Resolution 68 and Resolution 139, this overhaul in regulatory practices represents a broader national strategy that prioritizes post-check mechanisms over pre-emptive control and fosters business activity within various sectors, including the environment, AI, finance, and business.
