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In any country, there is a fundamental contradiction between a
citizen's freedom to do business and the state's necessity to
exercise control. An entrepreneur wants to be controlled as
little as possible, while the state tries to use its power to
protect the public interest in areas such as food safety, the
environment, security, etc. From my point of view as a policy
researcher, business licenses and conditions are administrative
procedures that are necessary to protect the public interests.
Mr. Pham Duy Nghia, Head of Business Law Division,
Law Faculty, Vietnam National University
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Business licenses are legal requirements that enterprises must
meet in order to conduct certain commercial activities.
Enterprises that conduct some activities in conditional business
lines without a license or permit are considered to have “broken
the law,” and in cases where claims or disputes result, the
authorized agencies can cancel the enterprises' transactions.
Despite their awareness of the consequences, some firms conduct
businesses without a license or a permit, as they need to
survive and consider the application procedure cumbersome,
lengthy, costly, and, in some cases, unreasonable. Other firms
that do try to comply with this complicated procedure are
hassled or may be requested by the licensing authorities to meet
many other arbitrary conditions. In their desire to follow the
law, such businesses may have to “give up” business
opportunities and thereby fall into heavy debt.
Mr. Nguyen Van Phuong, Deputy Head of Legal Department,
Vietnam Bank for Foreign Trade (Vietcombank)
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In fact, business licenses hurt firms more than they help. By
increasing the power of licensing authorities and restricting
the freedom of firms, business licenses create numerous
opportunities for corruption.
Mr. Vu Xuan Tien, Director,
VFAM Consulting Firm
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