HCMC – A newly launched package of institutional reforms is expected to help businesses and citizens reduce administrative compliance costs by more than 50% compared with previous years, equivalent to annual savings of around VND23 trillion.
The projected savings stem from 11 resolutions issued over the past two months together with a series of circulars introduced by ministries and agencies in less than one month. The measures form part of a large-scale campaign to remove business barriers under a special mechanism designed to address legal bottlenecks in accordance with Resolution No. 206/2025/QH15 of the National Assembly and support implementation of key targets set out in Conclusion No. 18-KL/TW of the Party Central Committee.
So far, the institutional reform campaign has eliminated 56 conditional business sectors and amended regulations governing another 14 sectors under the 2025 Investment Law, representing a reduction of more than 28%.
Compared with the baseline set under the 2020 Investment Law, the total number of conditional business sectors removed has reached 40%, equivalent to cutting 95 out of 237 sectors.
At the same time, the total time required for businesses to complete administrative procedures has been reduced by 53%, saving an estimated 51,247 days out of the previous total of 96,675 processing days. In addition to eliminating 697 administrative procedures and 1,754 business conditions and simplifying another 704 procedures, the latest reform drive places strong emphasis on decentralizing authority.
A total of 321 administrative procedures have been transferred directly from central agencies to local authorities for implementation. To ensure smooth operation of the new administrative system and avoid legal gaps, the Government has prohibited ministries, agencies, and local authorities from introducing additional administrative procedures, business conditions, or alternative regulatory measures that increase compliance costs for people and businesses.
As part of the next phase of shifting governance from pre-approval controls to post-approval oversight, ministries have been instructed to quickly review and issue new technical standards and regulations aligned with international practices to support post-licensing supervision.
Notably, the Ministry of Justice has been assigned to finalize and submit a pilot scheme for evaluating and scoring administrative reform performance in June. The digital assessment platform is scheduled to take effect in July to measure the actual impact of reducing business barriers and prevent the emergence of new forms of “sub-licenses” at ministries and local governments.
