Wednesday,  Sep 26, 2018,07:33 (GMT+7) 0 0
PM resolved to cut zoning plans
Lan Nhi
Thursday,  Jul 6, 2017,00:20 (GMT+7)

PM resolved to cut zoning plans

Lan Nhi

PM Nguyen Xuan Phuc (C) speaks at the monthly Cabinet meeting held in Hanoi on July 3-4 - PHOTO: TTXVN

HANOI – Prime Minister Nguyen Xuan Phuc has shown his determination to slash zoning plans, saying the existence of up to 20,000 zoning plans, most of them unworkable, is a huge waste of money.

Phuc clarified the Government’s view on the 20,000 zoning plans just one month after the National Assembly delayed the passage of a draft zoning law until its next sitting in October this year.

The delay was meant to give the Government more time to improve the draft as it would require revisions to around 30 relevant laws and ordinances. The draft law would take effect in 2019 if it is passed by the legislative body later this year.

Speaking at a Government meeting in Hanoi on July 4, Phuc said it is unacceptable that many of the 20,000 zoning plans have impeded economic growth.

Phuc stressed national and regional zoning plans as well as those for power and transport infrastructure should be kept. But he emphasized that ministries and agencies should ponder what to zone and how to lower the number of zoning plans, particularly those having dented economic growth.

The Prime Minister earlier repeatedly underlined the importance of enabling a favorable business environment and stepping up business and trade liberalization.

He told ministries and agencies to stop issuing more business conditions as liberal policies would help improve business efficiency, especially in the private sector which contributes 40% of the country’s gross domestic product (GDP).

Phuc said Vietnam has 600,000 businesses but only one-third of them pay corporate income tax, and that profits of domestic firms are much lower than those of foreign-invested enterprises.

Statistics of the Government put total assets of private firms in Vietnam at US$400 billion, including US$180 billion in fixed assets. Meanwhile, State-owned enterprises have total assets of more than US$200 billion.

If capital efficiency at private and State-owned enterprises rises by only 1%, they would have an extra US$3 billion, equivalent to 1.5% of GDP, according to the Government’s projections.

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