Directive No. 27/2003/CT-TTg On Continuing to Vigorously Implement the Enterprise Law, Encouraging the Development of Small and Medium Enterprises

DIRECTIVE

On further promoting the implementation of the Enterprise Law and encouraging the development of small and medium-sized enterprises

The Enterprise Law, after four years of implementation, has created a breakthrough in economic thinking reform, institutional reform, and administrative procedures in state management of enterprises. Along with the implementation of the Enterprise Law, policies to encourage and create conditions for the development of private businesses have been issued, resolving difficulties and obstacles, enhancing creativity and production capacity across the country, focusing on investment and business activities, contributing significantly to economic growth, structural transformation, and social issues resolution.

However, the implementation of the Enterprise Law still faces some limitations from both state management agencies and enterprises. The full exercise of the right to freely conduct business according to the law has not yet been achieved; policies supporting the development of small and medium-sized enterprises have been slow to be implemented; state management of enterprises remains hesitant: there are still cases where regulatory documents are issued without truly reflecting production and business needs, sometimes reviving the request-grant mechanism; many market entry procedures remain unreasonable, costly, and lengthy, especially in conditional business sectors; industry and trade development planning is still unsuitable and requires frequent adjustments, hindering new enterprises from starting up or expanding investments; sometimes, due to violations by a few enterprises, overly restrictive and complex regulations are imposed; many functional agencies and officials still arbitrarily add cumbersome administrative procedures, causing missed opportunities and additional costs for enterprises.

From the perspective of enterprises, the level of understanding of laws and the awareness of compliance among a portion of owners and managers is still low; some enterprises engage in dishonest practices and intentionally violate legal provisions; internal corporate governance is weak and lacks transparency; small and medium-sized enterprises have not formed effective linkages and cooperation, resulting in lower business efficiency and competitiveness; business associations are still struggling with their operational methods and have not genuinely supported members' development.

To address these weaknesses and create a significant improvement in the business environment, enhancing the effectiveness and competitiveness of enterprises, enabling them to proactively integrate into the international economy, and increasing the number of enterprises entering the market, particularly in rural areas, the Prime Minister instructs:

1. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government must strictly adhere to the constitutional provision that "organizations and individuals belonging to various economic components are allowed to produce and operate in industries and professions not prohibited by law"; ensure equal treatment for small and medium-sized enterprises and private businesses in investment, credit, taxation, land, trade promotion, import-export, and other fields; at the same time, immediately carry out the following tasks:

a) Promptly complete the assigned tasks under Decree No. 90/2001/NĐ-CP of the Government on assisting the development of small and medium-sized enterprises, Decision No. 94/2002/QĐ-TTg of the Prime Minister on the Government's Action Program to implement the Resolution of the Fifth Plenary Session of the Ninth Central Committee of the Communist Party of Vietnam, and Directive No. 08/2002/CT-TTg of the Prime Minister on enhancing the efficiency and competitiveness of enterprises. Report the results to the Prime Minister before April 30, 2004.

b) Review and inspect regulatory documents of ministries, sectors, and localities related to enterprise operations, abolish, supplement, or amend provisions that are no longer appropriate, and develop necessary new documents for enterprise operations in line with the Party and State's reform spirit and the process of international economic integration. Agencies issuing documents inconsistent with laws, decrees, or ordinances must issue amendments or revoke the non-compliant content; at the same time, strictly handle, within their authority, those officials who signed or advised on the issuance of incorrect content.

c) During the drafting of regulatory legal documents related to the business environment and the rights and obligations of enterprises, opinions of the business community must be solicited. Upon issuance, widely disseminate and provide guidance on implementation to grassroots levels, business associations, and enterprises.

d) Regularly organize dialogues between functional agencies and representatives of enterprises on specific topics, and between the Ministry and enterprises related to regulatory documents issued by the Ministry, thereby adopting new solutions proposed by localities and enterprises to improve and perfect regulatory documents; simultaneously, promptly and decisively resolve any issues arising during the enforcement of laws and policies.

2. The Ministry of Justice:

a) In the first quarter of 2004, issue a Circular guiding the issuance of practice certificates for legal consultants in the direction of lawyers and ensuring that all persons meeting the required qualifications, expertise, and professional experience can provide legal consulting services.

b) In the second quarter of 2004, issue guidelines on the documentation, procedures, and processes for transferring ownership rights of registered assets for capital contribution.

3. Ministry of Finance:

a) In the first quarter of 2004, submit to the Prime Minister for revision and supplementation of the Decision on the establishment, organization, and operation of the Guarantee Fund for Small and Medium-Sized Enterprises.

b) Take the lead and coordinate with the Ministry of Planning and Investment to review and assess current regulations that limit the transparency in financial management of enterprises, particularly regarding financial reporting, accounting, cost calculation, tax basis, tax collection and payment methods, and tax administration. Based on this, revise and supplement within their authority or propose solutions to address these issues in the second quarter of 2004.

c) In the third quarter of 2004, submit to the Government for consideration a draft Decree stipulating business conditions without distinction among economic sectors for debt collection services, asset valuation, and credit rating services.

d) Expand the pilot program of self-declaration tax payment for enterprises operating under the Law on Enterprises.

4. Ministry of Planning and Investment:

a) In December 2003, submit to the Government for consideration a draft Decree amending and supplementing Decree No. 02/2000/NĐ-CP on business registration and Decree No. 03/2000/NĐ-CP guiding the implementation of certain provisions of the Law on Enterprises; study, amend, and supplement Circular No. 08/2001/TT-BKH of the Ministry guiding the procedures and formalities for business registration.

b) In the first quarter of 2004, submit to the Prime Minister for approval the programs of State assistance for small and medium-sized enterprises as prescribed in Decree No. 90/2001/NĐ-CP on assisting the development of small and medium-sized enterprises.

c) In the third quarter of 2004, submit to the Government for consideration a draft Decree replacing Decree No. 77/1997/NĐ-CP on BOT within the country towards diversifying forms of domestic capital mobilization for infrastructure development.

d) In the fourth quarter of 2004, complete the network connection of the national enterprise information system.

đ) Coordinate with the Task Force on Implementing the Law on Enterprises and relevant agencies to continue collecting, reviewing, evaluating, and classifying various types of business licenses and recommend measures to the Prime Minister for handling them.

e) Take the lead and coordinate with the Ministry of Finance and the Ministry of Public Security to review and evaluate market entry conditions for various types of enterprises, including: documentation, procedures, costs, and timeframes in business registration, project approval, stamp engraving, tax code registration, invoice purchase, customs code registration... to amend, abolish, or propose competent authorities to amend or abolish unreasonable documentation, procedures, conditions, and costs, improve towards simplification and convenience for enterprises, rationalize work processes, and enhance coordination between relevant agencies.

5. The Ministry of Labor, Invalids, and Social Affairs:

a) In the first quarter of 2004, submit to the Government for consideration a draft Decree on business conditions and management organization of job introduction services.

b) Review and evaluate regulations and policies regarding establishment, management, and encouragement for vocational training institutions; in the third quarter of 2004, submit to the Prime Minister for amendment towards simplifying establishment procedures, diversifying scale and training formats, enhancing autonomy and responsibility for training content and quality, truly encouraging organizations, individuals, and enterprises to participate in vocational training for workers according to market needs.

6. The Ministry of Science and Technology:

a) In the first quarter of 2004, submit to the Government for consideration a draft Decree amending and replacing Decree No. 45/1998/NĐ-CP of the Government detailing technology transfer, towards simplifying procedures and strongly encouraging investment in technological innovation by enterprises.

b) Take the lead and coordinate with the Task Force on Implementing the Law on Enterprises to submit to the Government in the first quarter of 2004 for amendment Decree No. 63/NĐ-CP dated October 24, 1996 of the Government detailing industrial property rights, towards replacing the issuance of Industrial Property Representative Cards with business conditions that do not require permits, strongly promoting the registration and protection of industrial property rights in the country.

c) In the second quarter of 2004, submit to the Prime Minister for consideration a proposal to establish a database providing information on science and technology, building mechanisms to encourage collaboration between research institutions and enterprises.

7. The Ministry of Natural Resources and Environment:

a) In the first quarter of 2004, submit to the Government:

- Guidelines for implementing the policy allowing the use of land for production and business without having to convert to leasehold and pay rent for residential land, specialized-use land, legally transferred land according to the law, land granted by the State and paid for by households and individuals, and land already certified with Land Use Right Certificates.

- Guidelines for contributing the value of land use rights to enterprises operating under the Law on Enterprises, joint ventures between enterprises operating under the Law on Enterprises and foreign investors.

b) In the second quarter of 2004, submit to the Government for consideration a draft Decree (amended) on the procedures, conditions, and authority for transferring land use rights and changing land use purposes towards minimizing procedures and creating facilitation to promote economic restructuring and improve land use efficiency.

8. The Ministry of Home Affairs:

a) In the first quarter of 2004, issue guidelines for implementing Decree No. 88/2003/NĐ-CP of the Government on the organization, operation, and management of associations.

b) Take the lead and coordinate with the Ministry of Planning and Investment and the Ministry of Justice to study the Project to improve the Business Registration Agency system nationwide to unify the registration of all types of enterprises, submit to the Government in the second quarter of 2004.

9. From now until the second quarter of 2004, the State Bank of Vietnam: review, amend, and supplement regulations on the payment of goods and services import-export with neighboring countries, in accordance with Vietnamese laws, agreements between Vietnam and neighboring countries, and actual conditions at border areas; direct and support financial organizations to provide necessary financial services to promote cross-border trade.

10. The Securities Commission take the lead and coordinate with the Ministry of Planning and Investment to submit to the Government for consideration a draft Decree on the issuance, management, and trading of unlisted securities in the public market in the third quarter of 2004.

11. The Ministry of Public Security:

a) Take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Justice, and the Supreme People's Court in the second quarter of 2004, issue a Joint Circular on the determination of the identity of persons establishing enterprises.

b) Take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Justice to draft a Decree on the scope and business conditions for civil and economic investigation services to be submitted to the Government in the third quarter of 2004.

12. The Prime Minister's Research Board:

Shall take the lead and coordinate with relevant agencies to submit to the Prime Minister in the first quarter of 2004 proposals on guiding principles and basic contents for two laws: The Enterprise Law applicable to all types of enterprises regardless of economic sectors and the Law on Encouragement and Protection of Investment applicable to domestic and foreign enterprises investing in Vietnam.

13. Provincial People's Committees under the authority and responsibilities assigned shall immediately carry out the following tasks:

a) From now until the end of the first quarter of 2004, abolish regulations on business registration files, procedures, and formalities that contravene the Enterprise Law; abolish administrative documents temporarily suspending issuance of business registration certificates and permits for businesses in industries not prohibited by law; abolish business conditions that contravene laws, ordinances, and decrees already promulgated.

b) From now until the second quarter of 2004, review and evaluate local industry and profession development plans; abolish unnecessary plans; amend and supplement plans that are inconsistent with reality.

c) In the second quarter of 2004, issue regulations on land transfer, land lease, and approval of investment projects (inside and outside industrial zones) for enterprises in a direction to simplify administrative procedures according to the "one-stop" mechanism at local state administrative agencies.

d) In the fourth quarter of 2004, announce plans for socio-economic development, overall and detailed land use plans, urban development, industrial zone development, raw material region development so that citizens and enterprises in need have full and accurate information about these plans.

đ) Strengthen and enhance the capacity of the provincial Business Registration Office; establish a county-level Business Registration Office (according to Decree No. 02/2000/NĐ-CP of the Government on business registration) or unify the task to be carried out by the Finance and Planning Office or the Economic Department based on specific requirements and conditions at the local level.

Establish mechanisms for coordination, provision, and exchange of information, concretize the authorities and responsibilities of the Department of Planning and Investment, economic technical departments, provincial Public Security, provincial State Inspectorate, Tax Department, Market Management Authority, People's Committee Office, and district, county, and town People's Committees in supporting and managing enterprises after business registration.

e) Directly improve the capacity of the agency promoting small and medium-sized enterprise development; assign the Department of Planning and Investment to act as the focal point assisting the provincial People's Committee in coordinating with the Ministry of Planning and Investment to perform state management functions regarding the promotion of small and medium-sized enterprise development.

g) Organize meetings every six months with business associations, clubs, enterprises, and individual traders in the locality to promptly resolve difficulties and obstacles faced by the business community; at the same time, commend and encourage outstanding entrepreneurs who have made significant contributions to the socio-economic development of the locality.

14. Business Associations:

a) Develop programs, plans, and activities of the association aimed at creating strength for the business community in market development, actively participating and protecting the interests of enterprises in international economic integration, enhancing the competitiveness of industries; select and supplement capable, reputable, and enthusiastic staff from enterprises into the leadership structure of the association; strengthen professionalism, practicality, and effectiveness in the operation of the association.

b) Regularly compile enterprises' suggestions on laws, mechanisms, policies, management methods of state agencies at all levels, and the spirit of responsibility of civil servants in handling matters related to enterprises and present those suggestions to competent state agencies.

c) Promote and disseminate the Party's policies, laws, and regulations to members; provide training and disseminate knowledge to members; educate to enhance awareness of law compliance, social responsibility, and business ethics and culture.

d) Expand and improve the quality of support and business promotion services directly affecting the interests of members; diversify forms of experience exchange and business opportunity search; support and act as intermediaries for members to form joint ventures and collaborations to develop production and business, enhance competitiveness and integration of each enterprise, each product, and the economy; combat unfair competition and trade fraud within the country and internationally.

15. The Vietnam Chamber of Commerce and Industry shall cooperate with relevant state agencies and other business associations to contribute to perfecting the legal system, policies, and improving the business environment: develop and implement training and capacity-building programs for business owners and managers; implement linkages among business associations; establish ethical and cultural standards for business; build models of joint ventures and collaborations between enterprises, between enterprises and research institutes, universities, and scientists, to enhance competitiveness and fully utilize the potential of enterprises.

16. Owners, owner representatives, and enterprise managers:

a) Enhance understanding of laws and awareness of law compliance, build the business culture and ethics of Vietnamese entrepreneurs: honest and lawful business operations, social responsibility, environmental protection, and care for workers' lives; build and consolidate customer trust.

b) Develop production and business strategies and plans suitable to the enterprise's capabilities and market demands; improve product quality, efficiency, labor productivity, and competitiveness; focus on applying advanced management methods and enhancing transparency in internal corporate governance.

c) Actively exploit and utilize necessary information and knowledge about integration and international competition. Pay attention to training and enhancing the competence of management levels and workers in enterprises to meet the requirements for operating in new circumstances.

d) Proactively collaborate with other enterprises, associations, and related organizations to jointly overcome difficulties, maximize the capabilities of each enterprise and the strength of cooperative development of business networks in domestic and foreign markets, seize opportunities and overcome challenges during the process of international integration.

17. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of people's committees at all levels, Heads of units, and related organizations are responsible for implementing this Directive.

18. The Ministry of Planning and Investment shall take the lead, coordinate with the Government Office and the Task Force for Implementing the Enterprise Law to monitor and urge the implementation of this Directive; regularly report to the Prime Minister on the progress, results, and obstacles encountered during the implementation, and propose measures to address them.