Hanoi (VNS/VNA) - State managementbodies need to consider the market in terms of the development of newtechnologies and business methods, rather than using administrative proceduresto intervene in the operation of auto transport businesses, said Director ofthe Central Institute for Economic Management (CIEM) Nguyen Dinh Cung.

Speaking at a seminar on draft revisions toDecree 86/2014/ND-CP on conditions for auto transportation business held in Hanoion August 21, Cung said State management must also follow the trend ofprotection and good service to customers.

The seminar acted as a forum for relevantsectors to share their views, identify issues and propose recommendations forthe revision of documents or their implementation, thereby helping theGovernment make appropriate decisions on the issuance of the revised decree.

In terms of business conditions, the CIEM leadersaid that the scope of the revisions to the decree covered regulations onconditions of auto transportation businesses, granting and revoking businesslicences, badges and signboards, and regulations on announcing car terminals.

The draft Decree 86 is being circulated for thecontribution of opinions from ministries, sectors and people. There are manynew features such as the removal of some regulations and conditions on thecolour of logos, operating centres, communication equipment and uniforms.

However, the CIEM leader said this was not stillenough to apply old management for the new business methods to address existingshortcomings.

Cung said that with the fourth industrialrevolution, there would also be a conflict between traditional models and newbusiness trends.

Uber and Grab are just part of new businesstrends, sharing the digital economy, said Cung.

“Whether or not traditional activities willremain, the potential of the digital economy is huge,” said Cung.

"Do not look at a phenomenon and preventnew business trends. We should not use the traditional model to compete withbusinesses that apply new technology. Therefore, Vietnamese businessmen andenterprises need to bring into full play their creativity to generate artificialintelligence (AI) technology and Internet of Things (IoT) in order to developquickly and on a large scale, so that Viet Nam does not lag behind in terms ofdevelopment," he added.

Cung also said that new technology-basedbusiness methods may not be strongly encouraged and may be subject to sometechnical barriers, but this does not mean the abolition of this businessmethod is necessary.

The draft decree cuts 12 business conditions,however there are 85 additional conditions.

According to Nguyen Thanh Hung, President of theVietnam E-commerce Association (VECOM), the current Decree 86 needs significantamendments. But the new draft Decree offering more business conditions than thecurrent decree is not appropriate. As such, the addition of business conditionsshould be reconsidered.

To assure the rationality and feasibility ofDecree 86, economist Ngo Tri Long, who was former director of the Market PriceResearch Institute under the Ministry of Finance, said that the business modelneeds renovation.

“It is necessary to make use of the achievementsof the sharing economy to save resources for society. In addition, it isessential to remove unnecessary conditions and procedures that create burdensand unnecessary costs for businesses,” said Long.

Cung proposed that State management should beshifted from pre-inspection to post-inspection and the principle of riskmanagement should be applied.

"Before the fourth industrial revolutionand new forms of business, State management must create an equally competitiveenvironment, and create conditions for new business models and technologyenterprises to develop their operations and promote the transformation of traditionalbusiness," Cung said.-VNS/VNA