The State Bank of Vietnam is taking strong action to abolish unnecessary permits.

The Governor of the State Bank of Vietnam (SBV) has issued nine circulars simultaneously, abolishing many business conditions in the banking sector.

Immediately after issuing the action plan to improve the business environment, last weekend, the Governor of the State Bank of Vietnam (SBV) simultaneously issued 9 circulars, abolishing many business conditions in the banking sector.

Illustration photo: Internet

Eliminate many unnecessary business regulations.

The State Bank of Vietnam's swift action just before the 2014 Investment Law and the 2014 Enterprise Law came into effect was highly appreciated by commercial banks and economic experts. According to the recently issued circulars, many business conditions and sub-licenses have been abolished.

Specifically, circulars such as Circular No. 13/2016/TT-NHNN, Circular No. 14/2016/TT-NHNN, Circular No. 15/2016/TT-NHNN… all amend the regulations to simplify administrative procedures and abolish many provisions related to business conditions, such as regulations related to conditions for lending abroad; some provisions on conditions for entrustment, receiving entrustment, and conditions for factoring activities of credit institutions and branches of foreign banks…

The State Bank of Vietnam affirms that this amendment aims to ensure compliance with the effective implementation of the 2014 Investment Law regarding conditional investment and business sectors and Government Resolution No. 19/2016/NQ-CP.

The State Bank of Vietnam's pioneering move to reduce business conditions has been highly appreciated by banks. Mr. Le Quang Trung, Deputy General Director of VIB Bank, said: "This will help banks reduce the time and costs associated with administrative procedures, thereby improving business efficiency."

Agreeing with this opinion, Dr. Can Van Luc, Director of BIDV Training Center, said that cutting unnecessary administrative procedures and business conditions will also create conditions for banks to reduce operating costs, thereby reducing interest rates.

Prior to the massive reduction of sub-licenses, last week the State Bank of Vietnam (SBV) issued the Banking Sector Action Plan to contribute to improving the business environment, enhancing national competitiveness, and supporting and developing businesses in 2016-2017, with a vision to 2020. Accordingly, the SBV Governor set a target for the entire sector to improve the National Credit Access Index, while urging credit institutions to innovate lending processes by simplifying loan procedures while ensuring loan safety and compliance with legal regulations…

Gold businesses are not happy yet.

Meanwhile, gold businesses remain dissatisfied due to the lack of relevant regulations concerning the gold sector. Last week, the Vietnam Gold Business Association sent a letter to the Prime Minister requesting the elimination of numerous sub-licenses in this field. According to the Association, many activities that are not prohibited are effectively banned due to a multitude of sub-licenses.

For example, according to current regulations, borrowing capital, importing gold, opening branches, etc., by gold businesses are not prohibited. However, in reality, businesses producing gold jewelry and handicrafts are almost completely blocked due to a series of sub-licenses. Therefore, for more than four years, no business has been able to borrow capital to produce and trade gold jewelry and handicrafts, and for nearly five years, no gold business has been able to import raw gold.

"Importing raw materials for production is a legitimate requirement for any business in any industry, but for the past five years, we have been forced to buy low-quality, unregulated raw materials on the market at prices hundreds to millions of dong higher per tael than the price of imported gold," said the general director of a gold business.

The State Bank of Vietnam (SBV) has yet to respond to the complaints from gold trading businesses, but a source says the SBV's stance remains cautious regarding gold. The SBV is preparing to review Decree 24/2012/ND-CP on the management of gold trading activities before proposing further policies. "The SBV is the only agency authorized to import gold; businesses wishing to import gold need the SBV's approval. At this time, the above regulation should be maintained to combat gold hoarding," said Dr. Nguyen Tri Hieu, a banking expert.

According to baodautu.vn