On 09, November 2018, the Government issued Resolution No. 139/NQ-CP guiding the cost reduction action program for enterprises. This Resolution takes effect from the issued date.
Accordingly, Resolution No.139/NQ-CP has stipulated the program of cost reduction for enterprises, as follows:
Firstly, propose to adjust the ratio of social insurance payments between enterprises and employees.
In order to achieve the objective of cutting down and simplifying the social insurance regulations to reduce enterprise costs, the Government requested the Ministry of Labor, War Invalids and Social Affairs to propose amendments to the social insurance law by adjusting the percentage of contribution to the social insurance fund towards Harmonized benefits between businesses and workers.
Secondly, propose to adjust the Investment Law on business conditions.
To reduce costs related to the construction of production and business establishments, the Government requested the Ministry of Planning and Investment to coordinate with the concerned units to reduce and simplify business conditions (business registration), strictly control the process of issuing regulations related to business registration.
Thirdly, propose the adjust the procedures for issuance of construction permits and the granting of investment licenses; Fire prevention and fighting conditions with enterprises.
– The Ministry of Construction shall review, amend, supplement and reduce unnecessary regulations on planning procedures, planning permits and procedures applying for permission to build works serving production and business;
– The Ministry of Planning and Investment coordinate with the relevant Ministry having responsibility for reviewing and amending law provisions to unify the procedures for licensing investment projects involving the use of land, water surface and sea areas and construction works in the direction of unifying the procedures into a joint procedure so that investors do not have to go through many procedures, in many agencies;
– The Ministry of Public Security shall review the regulations on fire prevention and fighting in the direction of clarifying the regulations, minimizing the unnecessary requirements for works which can share fire prevention and fighting equipment; simplify the administrative formalities in the field of fire prevention and fighting for enterprises.
In summary, the issuance of Resolution No.139/NQ-CP shows the view and practical guidelines of the Government in reducing the unnecessary cost for enterprises. The main reason is the administrative formalities that are cumbersome, complex for businesses.