Vietnam should build a public administration system that truly serves businesses and contributes to national development, with every policy enacted to prioritize fostering business growth rather than merely easing administrative management, said several experts.

They were putting forward some solutions to institutional reforms and the creation of an administration model that serves companies and the nation as this vision is part of the broader effort, outlined by Party General Secretary To Lam, to strengthen the nation’s economy and support private sector growth.

Nguyen Quang Dong, head of the Institute for Policy Studies and Media Development, said that the key to developing a public administration system that serves businesses is reducing the mindset of excessive control. 

What businesses do well should no longer be tightly regulated, he said, adding that there is no need for an overload of administrative functions.

He explained that administrative procedures were originally designed to back the state’s management, but the government should ease its grip on businesses. 

One of the most urgent reforms is to eliminate unnecessary regulations and procedures created by various ministries, Dong underlined.

He also stressed the importance of increasing the application of technology and digitization to reduce the time businesses spend on administrative procedures.

“The process for handling procedures should be transparent and easy to access, allowing businesses and residents to conduct administrative procedures at home,” he said. 

The effort requires public employees to adopt a customer-oriented mindset and treat businesses and citizens as partners.

Dr. Nguyen Quoc Viet, former director of the Vietnam Institute of Economic and Policy Research, said that enhancing the efficiency of the state apparatus depends on changing the behavior of public servants. 

“Public employees should embrace creativity and flexibility when assisting businesses and individuals with investment and business procedures,” he remarked.

Policies for business growth, not control

Do Thien Anh Tuan, a lecturer at Fulbright University Vietnam, told Tuoi Tre (Youth) newspaper that to foster the growth of the private sector, the market economy framework must be fully developed. 

This means establishing a dynamic, modern, and competitive economy based on market principles, reducing state interference, and eliminating monopolistic practices. 

He pointed out that businesses should be allowed to compete freely, where the strongest companies rise, accumulate capital, and evolve into powerful conglomerates.

Tuan stressed the need for a legal framework that protects property rights and the freedom to do business for all residents and enterprises.

It is vital to avoid situations where businesses face excessive scrutiny and intervention just as they start to grow, he said.

Some experts also emphasized that institutional reform must go hand in hand with policies that serve business development. 

When supporting large private conglomerates, the government should not pick winners in advance. 

Instead, the government should nurture a competitive landscape where multiple large domestic businesses have the chance to grow, reach international standards, and contribute to the global economy, Tuan said.

Accountability, transparency in administrative procedures

Lu Nguyen Xuan Vu, chairman of Xuan Nguyen Group JSC, pointed out that businesses face penalties for delays, but state agencies are not held accountable for similar delays.

“For instance, firms face fines for late tax payments, but government agencies are not penalized for the delayed handling of administrative procedures,” he noted.

Vu suggested adopting a win-win approach where both the government and businesses progress together. 

He called for clear deadlines for administrative processes and penalties on officials who fail to meet these deadlines, thus ensuring that the entire public administration system moves forward efficiently.

Removing barriers to private sector growth

Nguyen Dang Hien, general director of Tan Quang Minh Manufacture and Trading Co. Ltd., underscored the importance of creating a conducive institutional environment for private businesses. 

The over-cautious approach in policy execution has deterred private enterprises from accessing financial support, especially during crises like the COVID-19 pandemic, he said.

Seeing the private sector as a key driver of the nation’s economic growth, the government should create favorable policies to help private businesses thrive and remove obstacles that hinder investment and business operations, he noted.

He also stressed the importance of administrative reform, as bureaucratic inefficiencies remain a significant barrier to business activities.

“Even when policies are flexible, the way officials implement them can still create difficulties for businesses,” he added.

Stability, consistency in policymaking

Dau Anh Tuan, vice-president of the Vietnam Chamber of Commerce and Industry, highlighted the need for a stable legal environment to support businesses. 

The government should systematically review and eliminate outdated or unnecessary regulations and ensure consistency across legal documents. 

He also stressed the significance of detailed timelines for policy changes and a more transparent process for lawmaking.

He underlined that evaluating the impact of policies before issuing them is crucial to avoid unintended consequences. 

The process of developing and enacting laws should be transparent, scientific, and involve all relevant stakeholders, he said. 

Like us on Facebook or follow us on X to get the latest news about Vietnam!