Efforts for Better Business and Investment Environment

In recent years, the Government introduced many action programs on improving the business environment, notably Resolution 19 and Resolution 02. To carry out these policies, Gia Lai province determined that reforming administrative procedures and enhancing the business environment are among key and prioritized tasks.

Dynamic government

Mr. Ho Phuoc Thanh, Director of the Gia Lai Department of Planning and Investment, said that in the past years, the Department of Planning and Investment has made ongoing efforts to advise the Provincial People's Committee on positive solutions for better business investment environment, including raising the Provincial Competitiveness Index (PCI).

Thanks to the dynamism and creativity of provincial authorities, the province achieved considerable improvements of solving enterprises’ difficulties. Up to 80% of enterprises expressed satisfaction with behaviors of government authorities.

Gia Lai province held investment promotion conferences to entice investors to the province. It held an investment promotion conference in Gia Lai province in 2016; two conferences (in Gia Lai and Ho Chi Minh City) and the Workshop on Creating Important Value Chains for Vietnamese and Australian economies in 2018; investment promotion events in South Korea and Japan, two investment promotion events in Bac Ninh and Ho Chi Minh City in 2019; and a conference on trade promotion and investment connection between Gia Lai and Ho Chi Minh City entrepreneurs, held by the Department of Planning and Investment together with the Gia Lai Young Entrepreneurs Association and the Saigon Entrepreneur Club in the first six months of 2020, despite the impact of the COVID-19 epidemic.

Free business support and training courses are also regularly held in the province. From 2016 to date, Gia Lai has organized about 40 classes for 4,000 trainees.

Every week, the Chairman of the Provincial People’s Committee listens to reports on investment project progress from departments and agencies to promptly direct and remove difficulties faced by businesses and investors. Every quarter, the Department of Planning and Investment hosts meetings with businesses and investors. Every month, department leaders work directly with districts, towns and cities on assigned business development targets. In the 2016-2020 period, as many as 3,939 companies were registered for establishment, an average of 790 new enterprises a year, representing a year-on-year growth of 21.6% (28.6% in the first six months of 2020).

Administrative reform and accelerated public services

Administrative reform has achieved much progress: Reducing by 50-70% the time to process administrative procedures relating business registration, specifically: New business registration and revised registration to one day; business registration revision with two or fewer contents changed to half a day (over 35% of documents can get immediate results), settling documents online to over 80%, investment registration certification to one day (compared to five days in the regulatory timeframe); and settlement of investment administrative procedures at the People’s Committee to 32 days (compared to 35 regulatory days).

Gia Lai province is one of leading provinces to launch public services for business registration. Officially operated since May 2016, the public administration center met enterprises’ needs. Nearly 1,000 enterprises contacted and registered to conduct public services, about 250 enterprises a year on average, not counting companies that public service divisions gave advice on documentation. Most businesses are satisfied with this service because public service divisions were established to reduce time and unofficial costs for businesses. In the first six months of 2020, due to the impact of the COVID-19 epidemic, the cost of public services on business registration was reduced by 20% and an extra 10% of reduction was expected to be achieved by the end of the year.

In 2019, the province launched the District and Department Competitiveness Index (DDCI) to measure the performance of provincial agencies and localities given by the local business community.

Top 20 PCI by 2025

According to the Provincial Competitiveness Index (PCI) released by the Vietnam Chamber of Commerce and Industry (VCCI), Gia Lai province’s PCI score was 56.16 points to rank No. 48 in 2014; 56.83 points to rank No. 47 in 2015; 57.42 points to rank No. 46 in 2016; 60.91 points to rank No. 43 in 2017; 63.08 points to rank No. 33 in 2018; and 65.34 points to rank No. 30 in 2019. Thus, from 2014 to 2019, its PCI standing climbed 18 places largely thanks to efforts of all tiers of authorities in administrative reform and investment attraction.

In the coming time, to drastically improve the business environment, quickly increase new corporate establishments; reduce business bankruptcy; lower input costs and informal charges for businesses and citizens, the province has boosted investment promotion and sided with businesses to enhance corporate competitiveness in the province to successfully carry out resolutions of the Government and the Provincial Party Committee on socioeconomic development. Gia Lai province will strive to stand among the Top 20 PCI rankings by 2025 and improve 10 component indices, especially sub-indicators of 10 component indices.

“The province will focus on simplifying and transparently publicizing administrative procedures, further reducing the time required for handling administrative procedures; enhancing publicity of information on legal, land, planning and bidding for enterprises to boost their business activity conveniently and easily; ensuring the full enforcement of business conditions and regulations on specialized inspection. Besides, Gia Lai will enhance the performance and service of the Public Administration Center; strongly apply information technology to administrative activities; and accelerate e-government construction, administrative reform and competitiveness improvement,” said Director Ho Phuoc Thanh.

Currently, Gia Lai province is stepping up the provision of online public services of Level 3 and Level 4; ensuring the delivery of at least 30% of online public services of Level 4 as per Plan 2575/KH-UBND dated November 18, 2019 of the Provincial People’s Committee on provision of online public services of Level 4 in Gia Lai province to 2021 to serve people and businesses; accelerating the reception of application forms and delivery of results of administrative procedures settlement via public postal services (as per Decision 1184/QD-UBND dated December 30, 2019 of Gia Lai People's Committee on administrative procedures eligible for being accepted and delivered via public postal services); regularly training professional qualifications, skills, behaviors and sense of responsibility  of public employees working with enterprises; further reducing the time of carrying out administrative procedures by 30-70% as compared to the regulatory timeframe.

Source: Vietnam Business Forum