PM shoots down publicised proceedings

April 25, 2016 | 11:00

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The Prime Minister Nguyen Xuan Phuc has directed that the police stop all legal proceedings against the owner of Xin Chao café in Ho Chi Minh City, who had earlier been charged with “conducting business illegally.” Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM), told VIR’s Khanh An that this is a message the business community has been waiting for.

The café owner has his happy ending. But is it not too much that the PM himself had to be involved in a case of this magnitude?

It is a timely directive by the PM. And this is a big issue, because it happened right when the government resolved to improve the business environment. If the government does not address this issue or does not address it in the new spirit, they will lose the people’s trust.

If the case goes to court and the owner is declared not guilty or sentenced to house arrest, people and the business community will lose faith in a business environment that is risky and where they are so easily criminalised.

I think the PM should get familiar with the business community and their specific difficulties. If the government wants companies to drive development, it has to be a partner of the business community, ready to support them instead of leaving them to fend for themselves.

I believe that the PM’s directive is supported by the people and companies because it conveys the message that the government is ready to realise its reform plan and facilitate the operation of companies. Now is the time to build trust through concrete actions.

As one of the people involved in the drafting of regulations that would eliminate the crime of “conducting business illegally” in the Law on Enterprises, how do you view this incident?

This incident can be considered the poster example of the difficulty in implementing the progressive features of the Constitution, the Law on Enterprises, and the Law on Investment.

Because doing business is a right of the people, the laws has to ensure that it is unhampered. In this sense, people have the right to do business and then notify authorised government agencies. If they are slow to give notice, they should not be prosecuted.

Government agencies should follow this spirit when interacting with companies. They should start investigations only to make the latter comply with the laws at their own will, and should instruct them to do so, instead of trying to find as many violations as possible to punish them. They have to view people and businesses as partners instead of subjects. This is the modern, humane way to govern.

Only when such governance is achieved will the government be able to gain the trust of the people and businesses in reform policies and the leadership.

On April 29, the PM is going to meet with the business community for the first time in his term. Will companies bring up similar grievances?

If there are, I think companies will turn to the PM instead of going to the relevant government agencies, as stipulated by regulations.

I think the PM wants to hear the truth, wants to hear about the difficulties of the people and businesses, to know how they feel and know for real what the business environment is like. Of course, companies will have to choose typical examples and the PM will solve the problems in groups. But I believe this is the chance for the PM to share the business community’s difficulties.