HANOI: Casinos, karaoke bars and dozens of other industries may no longer require specific business licences under a proposed overhaul aimed at improving the investment environment and supporting the private sector as Vietnam pursues ambitious double-digit growth.
The Ministry of Finance is seeking feedback on a draft resolution that would abolish 58 conditional business lines and revise another 12, according to a statement on the government’s website. Sectors under review include reinsurance, rice exports and automobile imports - which are all currently subject to business licensing requirements under the 2025 Investment Law.
The draft "represents a significant step toward a more streamlined, risk-based regulatory framework,” Pham Luu Hung, chief economist at SSI Securities Corp. wrote in a note to investors.
"If effectively implemented, it has the potential to materially reduce compliance burdens, facilitate private sector expansion, and strengthen Vietnam’s investment environment, while preserving necessary protections for key public interests.”
It’s the latest step in a sweeping reform drive under General Secretary and President To Lam, aimed at cutting red tape, accelerating approvals, and shrinking the size of the bureaucracy.
The overhaul - the most extensive in decades - has targeted a roughly 20% reduction in ministries, agencies and workforce, in an effort to improve policy execution and boost economic growth.
In April, the government issued eight resolutions eliminating 680 administrative procedures and simplifying 521 others to address bottlenecks in investment approvals and business operations, according to a separate statement on the government’s website.
Vietnam is also seeking to accelerate private-sector development and reform state-owned enterprises as it targets annual economic growth of at least 10% on average over the next five years. This goal is already being tested by the conflict in the Middle East which has pushed up energy costs and raised inflationary risks.
The finance ministry proposal is designed to remove redundant or overlapping entry conditions while retaining safeguards tied to national security, public order and public health, the statement said. - Bloomberg
