Vietnam’s Prime Minister Phạm Minh Chinh has issued a bold directive aimed at reforming the country’s administrative procedures and improving the business environment. In a move that could streamline operations across multiple sectors, the directive mandates a significant reduction in the bureaucratic hurdles that businesses face.
Under Directive No. 22/CD-TTg, Prime Minister Chinh has instructed the government to cut the processing time for administrative procedures by 30%, while also reducing business compliance costs and eliminating unnecessary business conditions by the same proportion. This initiative is part of a broader push to enhance the efficiency of the regulatory environment, promoting a more favorable climate for investment and business activities.
The directive calls on ministries, agencies, and local authorities to undertake comprehensive reviews and implement substantial cuts in regulations related to investment, production, and business operations. A central aspect of the reforms is the digitization of all business-related procedures, which aims to ensure smoother, uninterrupted, and more efficient processes.
In addition, the Government Office will work closely with relevant agencies to draft a new Resolution on the Reduction and Simplification of Administrative Procedures for the 2025–2030 period. This resolution, set to be finalized by March 31, will focus on creating a more business-friendly environment by addressing persistent regulatory challenges.
Prime Minister Chinh also emphasized the importance of transparency, directing the timely publication of administrative procedure information on the National Database on Administrative Procedures. He stressed the need for prompt resolution of business challenges identified in consultations with state-owned enterprises, private businesses, small and medium-sized enterprises (SMEs), and major foreign direct investment (FDI) investors.
In an effort to boost innovation and technological advancement, the directive highlights the promotion of digital transformation and the enhancement of workforce quality, aiming to strengthen Vietnam’s global competitiveness. Additionally, in recognition of the financial pressures faced by businesses, the directive includes measures to alleviate tax burdens, such as tax relief and extensions to encourage private sector growth and support development investments.
The Ministry of Finance has been tasked with coordinating with other government bodies to extend deadlines for value-added tax (VAT), corporate income tax, personal income tax, and land lease payments in 2025. A decree to extend the special consumption tax for domestically produced and assembled automobiles is expected to be submitted by March 15. Furthermore, the Ministry will research and propose the expansion of tax reductions and VAT cuts for the latter half of 2025 and 2026, with recommendations due by the same deadline.
This comprehensive directive marks a decisive step in Vietnam’s ongoing efforts to reform its business environment and stimulate economic growth.
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