Directive No. 657-TTg on Strengthening Management of Non-State-Owned Business Production and Trading Enterprises and Services

DIRECTIVE

On Strengthening Management of Non-State-Owned Business Production and Trading Enterprises and Services

In recent years, business units under the non-state economic sector, including joint-stock companies, limited liability companies, and individual traders operating alongside state-owned enterprises within a market economy have made significant contributions to expanding commodity circulation, tapping into the potential of various regions across the country for production development, and improving people's living standards. However, on the other hand, violations of laws in business activities, particularly among individual traders, have become severe. The phenomenon of traders operating outside their registered scope is widespread in many localities. Many individual traders have escaped state management, engaged in illegal trade, evaded taxes, speculated, and undercut prices, causing instability in the market at times and places.

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Local authorities have not sufficiently emphasized organizing business registration, leading to lax management. Tax agencies have not fulfilled their responsibilities, neglecting tax collection from many traders or collecting only nominal amounts, resulting in revenue loss for the budget and negative impacts on production, social order, and safety.

To restore order and discipline in production and business activities for non-state economic entities, the Prime Minister requests that ministers, heads of ministerial-level agencies, equivalent agencies under the Government, and chairpersons of provincial People's Committees implement the following tasks:

1. The Ministry of Trade shall take the lead, coordinate with the General Statistics Office, and provincial People's Committees to conduct a thorough review and comprehensive statistics of existing non-state-owned production and trading units, categorizing them according to business fields and scale, identifying the number and addresses of units and traders who have and have not registered for business.

The Ministry of Trade shall convene with the Ministry of Planning and Investment, the Ministry of Finance, the General Statistics Office, the Ministry of Justice, and provincial People's Committees to unify the issuance nationwide of application forms for business registration, business license templates, clearly defining conditions, responsibilities, and rights of units and private individuals when permitted to operate. It is imperative that all units and individuals must engage in business activities strictly in accordance with their registered industries and professions, adhering to the law. Competent authorities must not cause undue harassment to business units.

The Ministry of Trade shall coordinate with provincial People's Committees to be responsible for guiding specific levels of management regarding procedures and formalities for applying for and issuing business licenses, unifying the establishment of regular reporting systems for local authorities to relevant functional management agencies. Local People's Committees shall be responsible for organizing convenient and lawful business registration.

During this review period, the situation of conducting business without registration must be resolved definitively. For units and private individuals currently engaged in business but without registration, each case should be examined specifically to resolve the issuance of business licenses. For units and private individuals deliberately avoiding declaration to evade taxes, they must be dealt with according to the law based on the severity of the offense. For those already registered for business, re-declaration and issuance of new business licenses must be conducted. Ministries, sectors, and localities must complete the review, declaration, registration, and re-registration of business activities by the end of the second quarter of 1997 as assigned.

2. The Ministry of Trade and the Ministry of Finance, within their respective functions, shall coordinate with provincial People's Committees to guide, plan, and direct local market management forces and tax authorities to effectively perform inspections and supervision of policy and legal compliance by production and trading units; strictly handle according to the law individuals and units engaging in illegal business activities to avoid state inspection and supervision for improper gains. Enhance training and education to improve political awareness, professional skills, and moral qualities for cadres and staff performing duties at local levels. Cadres and employees who abuse their positions for personal gain by colluding or turning a blind eye to business operators' violations will be disciplined or prosecuted criminally depending on the severity of the offense.

3. The Ministry of Trade shall be responsible for compiling reports on the implementation results of the tasks stipulated in Point 1 of this Directive; coordinating with the Ministry of Planning and Investment and the Ministry of Finance to comprehensively assess the operation of production and trading activities in the non-state sector, reviewing regulations on mechanisms, policies, and management measures, identifying issues and obstacles in implementation, and recommending appropriate amendments to the Prime Minister to encourage the development of production and business activities in this sector.

4. The Ministry of Finance shall provide necessary funding for the implementation of this Directive.

4. The Ministry of Finance shall allocate the necessary funds for the implementation of this Directive.