Why is there such a big difference in the rate of cost reduction in the transport industry?

Commenting on the draft Report on the Plan to reduce and simplify regulations related to business activities under the state management of the Ministry of Transport in 2023 (2nd time), VCCI assessed that the draft proposed many plans to decentralize the authority to handle administrative procedures, transferring from the Vietnam Road Administration to the Department of Transport. These proposals are reasonable, contributing to creating more convenience for subjects when carrying out administrative procedures.

The Government requested the Ministry of Transport to continue to promote the implementation of the Program to reduce and simplify regulations related to business activities in the 2020 - 2025 period.

However, regarding the benefits of the calculated reduction and simplification of compliance costs, VCCI said that "it does not seem to be really clear".

Specifically, there are administrative procedures such as issuing/reissuing driving instructor certificates, issuing/reissuing driving practice licenses after decentralizing the authority to handle administrative procedures to localities for implementation, the compliance cost after reduction, simplification, cost savings is 0 VND/year, the cost reduction rate is 0%.

However, there are administrative procedures such as re-issuing driving training licenses, issuing certificates of qualified driving test centers of type 1 and type 2, after decentralizing the authority to handle them to localities for implementation, it is determined that the reduction rate is quite high, over 90 - 100%.

In addition, although the same activity is the decentralization of administrative procedures for the same type of license, the cost reduction rate is very different. For example, the procedure for granting a driver training license, for the new issuance procedure, the cost reduction rate is 0%, while for the re-issuance procedure, the cost reduction rate is 100%; The procedure for granting a certificate of a driving test center of type 1, type 2 qualified to operate - for the new issuance procedure, the cost reduction rate is 83%, while for the re-issuance procedure, the cost reduction rate is 98%.

"Thus, the same procedure is related to a license, but the new issuance procedure when the authority to handle administrative procedures is decentralized will not bring any cost benefits, the reduction rate is 0%, while the re-issuance procedure, the reduction rate is 100%? Meanwhile, the decentralization of authority to handle administrative procedures in the procedure for granting certificates of driving test centers of type 1 and type 2 qualified to operate, both new issuance and re-issuance activities have quite high reduction rates. In short, it is unclear, both are activities of decentralization of authority to handle administrative procedures, why is there such a big difference in the cost reduction rate?" - VCCI raised the issue and requested the Ministry of Transport to explain how to calculate the compliance costs of the above reduction and simplification options. From there, we can ensure accuracy and determine the real benefits of the reduction.

Previously, on September 18, VCCI also issued Official Dispatch No. 1857 to comment on the first draft of the Ministry of Transport, but some of VCCI's comments were not accepted and VCCI has not received an explanation for this non-acceptance.

On April 21, the Ministry of Transport issued Decision 484 on the Plan to reduce and simplify regulations related to business activities with the goal of reducing and simplifying at least 20% of the number of regulations and reducing at least 20% of the cost of complying with regulations related to business activities. At the same time, the number of current documents under the authority of the Minister, Prime Minister and the Government will be reduced to the maximum.

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