Vietnam Business Channel

Vietnam’s Construction Ministry cuts business and investment conditions

Vietnam’s Ministry of Construction has cut or simplified 85% of the 215 business and investment conditions that have been under its purview  and eliminated five of 17 conditional business lines.  The ministry is also reviewing whether it can remove four other conditional business lines and expects to make a decision on this within the next few months.

The intense streamlining of the Ministry of Construction’s investment conditions and regulations follows a directive by the Prime Minister that asked various ministries and government units to streamline and simplify business and investments conditions so that Vietnam becomes a business friendly country.  

The Prime Minister had asked that at least 35% of current business regulations be cut, so the 85% ratio achieved by the Ministry of Construction is seen as a model for other ministries and government offices to emulate in making administrative reforms and creating a better business environment. 

The Ministry of Construction took the initiative to address difficulties for businesses by coordinating with the Prime Minister’s Office the organization of a national teleconference that discussed problems related to construction investment and that suggested practical solutions to these problems.  

The teleconference was presided over by Prime Minister Nguyen Xuan Phuc and was unique in its preparation, which included coordinating with the Viet Nam Chamber of Commerce and Industry to hold the conference and to listen to the difficulties businesses were facing.  Additionally, more than 2,000 petitions from individuals, enterprises and  organizations were collected that also discussed problems and suggested remedies.

The ministry is currently working with other related ministries to realize the outcomes of the teleconference and has submitted to the Government a resolution on measures to ease difficulties and solve problems related to construction investment policies.  As an initial response to these proposals, the ministry received Government approval to step up the implementation of measures that will shorten the timeline for granting construction licenses and procedures by more than 40 days.