The relationship between the State and Enterprise is always close. The State issues regulations and management policies, and Enterprises comply with those management policies by implementing administrative formalities. In this article, we will discuss the issue of “The relationship between the State – Enterprises and administrative formalities“.
1. Difficulties encountered by Enterprises when collaborating with and communicating with State agencies
First, regulations on the jurisdiction of agencies are still complicated and overlapping. Enterprises will typically have to collaborate with many agencies to resolve a dispute. Meanwhile, with only one agency, the Enterprise has to work many times with them. This amount of time is multiplied many times if Enterprises must work with many agencies. Besides, when the legal regulations are not consistent, Enterprises have difficulty in finding the right competent agency to deal with. When the Enterprise carries out administrative formalities, the provisions of the law determine that a specific State agency has the authority to deal with it. However, when the Enterprise communicates with this agency, they respond that the responsibility falls under another authority. Thus, only by determining the competent agency, the Enterprise has encountered many difficulties.
Second, some regulations on formalities are not clear, sometimes the settlement of the case will depend on the views of each state agency. This makes Enterprises quite confused when working with the State agency.
For example, in the same case, there were differences of opinion between the subordinate agency and the direct managing agency, or the views of people in charge of settlement in the same agency are not unified. This is due in part to the emergence of alternative interpretations in a provision of a legal text, and in part to a lack of internal consistency across state entities.
Third, the situation of “interference” when working with the State agency still exists. In the process of working with the State agency, Enterprises sometimes have to pay for informal payments to ensure the time to carry out administrative formalities.
2. Solutions to solve the relationship between the state agency and the enterprise during the implementation of administrative formalities
First, when receiving the Enterprise’s dossier, the state agency needs to have written confirmation, clearly stating the time of receiving the enterprise’s dossier. This will help Enterprises coordinate with many competent state agencies in the same case.
Second, the state agency should respond in writing with the Enterprise’s records. This will create transparency and clarity in the process of handling dossiers, as well as ensure the relevant superior and subordinate state agencies fully understand the process of handling the Enterprise’s records.
Third, the state agency timely updates and publicizes administrative formalities, and shortens the time to handle administrative formalities. Along with that, the state agency needs to strengthen administrative discipline, re-evaluate the quality of the contingent of civil servants performing public administrative services; organize and set up a variety of information channels to access the reflections and recommendations of Enterprises on administrative regulations.
Fourth, the state agency needs to perfect and thoroughly apply technology and digital transformation in handling administrative formalities. In 2021, the strong impact of the Covid-19 pandemic made economic, social, and other development activities difficult. Many provinces and cities have used technology and digital transformation to solve administrative requirements for individuals and companies to overcome problems in pandemic situations. However, the use of technology and digital transformation in the process of managing administrative formalities continues to face numerous challenges, and there is no precise direction, leaving organizations perplexed when adopting. As a result, the State agency must have explicit and clear instructions on the application of technology and digital transformation and create favorable conditions for Enterprises in handling administrative formalities.
Fifth, the state agency needs to cooperate more synchronously and seamlessly across all levels and sectors to assist harmonize the relationship between firms and the State, allowing Enterprises to be more efficient while performing administrative formalities.
Above are a few issues related to the close relationship between the State and Enterprises and administrative formalities. Hope our article is useful for you and your work.
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TNTP and Associates International Law Firm