Removing Unnecessary Business Conditions: Vietnam Shifts from Pre-Approval to Post-Approval Oversight

From pre-approval to post-approval, the regulatory agency should shift strongly from pre-check to post-check, a direction emphasized in Resolution 68. Economist TS Le Ba Chi Nhân, in interviews with reporters from Người Lao Động, said that the government’s ongoing review and reduction of administrative procedures and business conditions this month represents a strategic turning point for Vietnam’s investment and business environment in the new phase. He described the move as an urgent institutional requirement to remove bottlenecks accumulated over many years, rather than a purely technical reform.

Push for a post-check mechanism

The expert said most current procedures are not driven by real-world needs but by a traditional “pre-control” mindset. In his view, the state tends to regulate firms before they can operate, instead of allowing businesses to run freely and then managing compliance through a post-check system with traceability and sanctions for violations.

“Pre-check thinking leads to an ever-growing number of conditional sectors and business conditions,” he said.

He noted that the consequences extend beyond frustration among businesses and can weaken national competitiveness. Firms often have to spend time and money to obtain permits and certificates, face overlapping inspections, delay product launches, raise costs, and reduce incentives to innovate. He added that many regional economies have already moved to risk-based management and fully digitized administrative procedures.

Three urgent requirements for substantive reform

To reform effectively, TS Le Ba Chi Nhân proposed three urgent requirements.

• Review conditional business sectors to remove as many as possible. The principle, he said, is that firms should be allowed to operate in areas not prohibited by law, rather than requiring permits for most activities. He added that while many sectors have adopted digital technology and digital data retrieval, business conditions remain manual and outdated.
• Shift management from pre-control to post-control. He cited food safety as an example: instead of requiring multiple certificates before goods circulate, authorities should build an electronic traceability system, conduct surprise inspections, and apply strict penalties for violations. He argued that when the cost of violations is high enough, firms will comply voluntarily.
• Address duplication of authority among agencies. He said the government should identify a single primary accountable body to prevent overlapping control by multiple agencies with unclear responsibilities.

Need for synchronized cooperation across government levels

From the business perspective, Mr. Mai Minh Vuong, Chairman of Nhất Phong Vận Joint Stock Company and Vice Chairman of the Da Nang Young Entrepreneurs Association, said reforms to administrative procedures and the removal of conditionality can deliver tangible benefits by enabling firms to operate more flexibly and efficiently. He said reducing bureaucratic barriers first helps businesses be more proactive in production and adapt quickly to market changes.

He emphasized that removing certain “sub-licenses” is necessary because many activities still require registrations and sector additions, slowing progress. “With simplified rules, firms can implement plans immediately rather than waiting through a complex permit process. Reducing business conditions also shortens project execution time, lowers costs, and enhances efficiency. In addition, digital transformation is seen as a key factor in reform, helping shorten processing times and facilitate both people and firms,” he said.

Mr. Vuong also stressed that reform works only when government machinery operates cohesively, avoiding duplication and lack of connectivity.

Redesign implementation, not only paperwork reductions

Mr. Nguyen Xuan Duong, President of the Vietnam Livestock Association, said reducing or eliminating veterinary and farming conditions is necessary, but more important is redesigning the approach. He argued that many procedures have been reduced on paper but still stagnate in implementation.

He suggested adopting a governance model aligned with the central-local division of responsibilities. In his view, the central government should focus on completing institutions and policies and strengthening supervision, while implementation should be delegated to local authorities. However, he said decentralization alone is not enough because many procedures remain blocked due to poor coordination in execution.

Mr. Duong pointed to gaps in integration between ministries and localities, saying the electronic portal is not fully integrated, creating backlogs even when procedures are supposed to be streamlined. He also cited insufficient training for localities, which affects processing capacity, and inadequate investment in IT infrastructure between central and local levels, which can cause delays.

To address this, he recommended that alongside simplifying procedures, the government design new operating methods suitable for the new organizational system. “The central authorities should be willing to delegate more power, while localities must prepare the necessary conditions to implement. Otherwise, people and firms will continue to bear the burden of bureaucracy,” he said.

“Reforming institutions and administrative procedures must be pursued further. Only by reducing production costs can the livestock industry expand, enhance competitiveness, and aim to become a production hub for the region and the world,” he added.

From “management” to “partnership and service”

Mr. Pham Van Xo, President of the Ho Chi Minh City Import-Export Association, said many procedures should be streamlined and carefully considered before implementation to create favorable conditions for firms. He called for leaner policies that shift from “management” to “partnership and service” for businesses, with regulators sharing information and helping remove obstacles once the real situation is understood.

On digital transformation, he called for synchronized deployment, especially common software management. He said that in customs procedures, each firm currently must invest in its own software to connect, costing tens to hundreds of millions of dong, even though many tasks are similar. “If there is a shared system, it saves costs and eases administration,” he emphasized.

He also said regulators should design suitable rollout timelines before issuing new decrees and circulars, giving firms time to adapt and avoiding “jolts.”

Conclusion

The article concludes that reform of institutional and administrative procedures must be advanced further, arguing that lowering production costs is key for the livestock sector to expand and become a production hub for the region and the world.