Rating Ministries based on Companies’ Opinions: Springboard to Boost Administrative Strengths

Lawyer Tran Huu Huynh, Vice General Secretary and Head of Legal Department, VCCI, talked on the reactions of ministries, business associations and specialists to the report as well as plans for similar reports in following years.

 

All comments pitched the pressing importance of the release of the Report on Quality Assessment of Business-related Legal Development and Enforcement by Ministries, given the current socioeconomic context. There are two opposite flows of opinions. One supports both methods and results while the other is dissatisfied with the methodology for the survey. For example, they expected more survey criteria and targets.

 

The report is a synthesis of comments from 124 associations representing over 77,000 businesses nationwide in all areas. This is the response of the community for quality business building activities and implementation of the law in areas related to business.

LDEA surveyed 124 business associations presenting approximately 77,000 companies all over the country. LDEA is the feedback of the business community to the quality of business-related legal production and enforcement by ministries. From the result, ministries will know where they should enhance transparency or consistency or others to tune up their operations.

 

From the experience with the provincial competitiveness index (PCI) in the past years, we know that ministries as well as local authorities will take this as a channel of reference to improve themselves. We are sure that ministries will not react how they were rated for what they had done. Indeed, this is the point of view of surveyed companies that the VCCI gathered and analysed.

 

Like PCI, many provinces at first reacted very strongly as they had not understood. However, they gradually understood and supported the index. PCI is broader with nine indicators for assessment of investment and business environment of provinces and cities. LDEA covers only two criteria of legal development and enforcement but they are basic activities of ministries. LDEA will significantly help ministries to improve their operating and managing capacities. In fact, at the announcement meeting, representing from many ministries highly appreciated the role of LDEA report. We believe in the support of ministries and business communities for this activity.

 

We must weigh on many different conditions in consideration of an expansion for LDEA survey criteria. Some criteria like impact assessment require enormous financial and personnel resources. We also expect this will become an annualised activity, aiming to help ministries understand more about their successes as well as shortcomings to take action for improvements. From the survey results, ministries can enhance the quality of lawmaking and enforcement and create a more favourable environment for the business community. Hence, the enlargement of the scope and criteria of the report is also the desire of VCCI.

 

This is the first time VCCI released the LDEA report. We do expect comments on methods of assessment and information gathering. If we sit together, we should only focus on this aspect. Every year, ministries host dialogues with the business community on legal development and enforcement. The announcement of LDEA is merely the receipt of direct feedbacks from objects subjected to regulations of government agencies.

 

I need to note that some fields may be rated low because they are in the public eyes, not really badly performed by rated ministries. LDEA results may also help the government tune up policies to support “hot” matters in the most appropriate way.

LDEA is the study on the assessment of business associations on the openness, transparency, proactiveness and efficiency of legal development and enforcement at 14 Vietnamese ministries. LDEA surveyed 124 business associations presenting approximately 77,000 companies all over the country.

 

In the past time, ministries in particular and the Government in general have gradually perfected the legal system and strengthened the law enforcement. Typically, in business-related fields, the system of legal documents in most of these areas has been built up. Specifically, in certain periods of time, about 70 % laws and ordinances covered civil and economic fields. The Project 30 on simplification of administrative procedures has been adopted by the Government and actively implemented by ministries and local governments. The Decree 66/2008/ND-CP on legal support for enterprises and other documents are also directed to supporting the business community.

 

The survey points out that the quality of lawmaking has been significantly improved but the enforcement is rated merely average, failing to meet expectations of businesses and association. The quality of legal documents and the accessibility to legal information are rated low by business and associations; thus, they should be improved in the future. The business community expects ministries to deal with shortcomings to better support the development of the business community.

 

Ratings are reflected by the scores gained. However, high or low ranking does not only mean the scores but expectations of businesses for stronger improvement of legal development and enforcement at ministries.

 

Combined with five-year experience in assessing the provincial competitiveness index (PCI) on local business environment and shared efforts to execute the Project 30 on administrative procedure reform, LDEA 2010 survey is VCCI’s another attempt to share forces with ministries and business community to perfect the legal development and enforcement in particular and create a more favourable and effective business environment in general.

Mr Hoang Tuan Khai, Director of Government’s Legal Department: Reliable address

LDEA report is sort of public-oriented activities. What VCCI has done is a good premise for an institutional construction and policymaking adopted by the National Assembly, the Government and ministries. Institutional construction is an important political task that helps Vietnam escape from poverty. VCCI should continue to improve its assessment methods for LDEA, making it a channel for ministries to perfect the quality of their activities.

 

Transparency in operations is one of important LDEA criteria. LDEA will help enhance transparency of activities of government agencies, authorities and civil servants. If we had sufficient transparency, we would have not had Vinashin or PMU 18. The State power belongs to the people and this will be institutionalised through dialogues and comments such as LDEA.

 

The LDEA report is the most succinct assessment of lawmaking and enforcement at ministries. This is a scientific research that helps us have suitable adjustments to better support businesses. Rating of ministries by companies will force ministries to raise their rankings. Lowly rated ministries will know where to deal with their weaknesses and highly rated ones will try to maintain their positions.

LDEA polls sent by VCCI have collectively discussed by business associations. Basing on our serious meetings, business leaders sent their true feelings and experiences to our research panel. Reviewing their remarks, we feel that legal development and enforcement at ministries are quite weak. Many administrative agencies and civil servants are reportedly deliberately raising difficulties for businesses. We do hope that LDEA will help enhance legal development and enforcement.