One more law to loosen the shackles on businesses

Vu Quang Cac-head of the Master Planning Department of the ministry

The draft law, which the ministry expects to submit to the government for review by the end of this month and to the National Assembly for opinions in October, clarifies the definition of master planning to only include construction of crucial infrastructure in sectors using limited and non-renewable natural resources and sectors that need rationing of space, land, airspace and water surface.

Besides these sectors, there would only be macro master plans on national, regional and provincial economic development, instead of the micro master plans on specific products and services, such as alcoholic beverages, shrimp, or pangasius.

Regarding specific products and services, the government is going to introduce quality as well as environmental and labour safety standards. The standards are publicised to ensure transparency.

This new approach of management is more suitable as Vietnam is moving towards a market economy, according to Vu Quang Cac, head of the Master Planning Department of the ministry.

“Rigid master plans are just not appropriate in the context of dynamically changing demands, developing technologies and the integration of Vietnam into the global economy,” he explained. “They only make it difficult for people and businesses to plan their investments.”

Master plans that encourage the development of a sector through concrete incentives, can be mistaken for government subsidies.

Statistics released by the department showed that up to now Vietnam has made 19,285 master plans. The cost of making such plans just for the 2011-2020 period was approximately VND8 trillion ($373 million). Yet, many of these master plans remain unreasonable or unfeasible and are subjected to constant changes, confusing people and businesses.