Vietnam to revamp slow investment procedures

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OneStopShop“Coherent and consistent procedures for investment licensing” are the target of Vietnam’s administrative reforms through 2015, official media reported on August 28.

In the past, many businesses complained about red tape and complicated and inefficient administrative procedures, the Vietnam Chamber of Commerce and Industry (VCCI) said. A poll of around 8,000 companies showed that procedures related to land, construction, and investment were “the most tortuous.”

Tran Thi Bach Van, director of the Ho Chi Minh City-based Tri Tue Tourism Trading & Advertising Services Co. Ltd, said that 10 years ago her company asked to develop a tenement project in the city’s Binh Thanh District, but has yet to be done with the formalities,” Thanh Nien News wrote.

Pham Hoang, deputy chairman of the small and medium-sized enterprises association in the Central Highlands province of Lam Dong, said in 2010 six companies invested in a 54-hectare ecotourism project in Lam Dong’s Da Lat Town. In 2011, they got an investment certificate and began work, but a year later authorities decided to take back part of the land to afforest it, and told them to continue their project on just 8 hectares, he said. The six investors had to give up on the project after putting in much effort, including years spending on completing paperwork, he said.

“Many foreign investors don’t want to invest in Vietnam because of such shortcomings,” he added.

The director of another company said for a project it takes around 4 years from the time it is approved until it gets a license. The company is meanwhile losing out money on interest payment for loans because it cannot proceed.

Pham Tuan Khai, deputy chairman of the Advisory Council for Administrative Procedure Reform, said the problem lies with officials adn lawmakers, asking how some projects only need a few months while others have to wait for years. The question of whether investors can go to court when an investment procedure is inappropriate and causes them difficulties should also be considered, he said.

However, statistics show that despite the shortcomings, foreign direct investment is still on the rise in Vietnam. The country has received investments worth $12.63 billion in the first 8 months of 2013, and economists believe that the full-year target of $13-14 billion will be achieved or even exceeded. The investment in the period represents a year-on-year increase of 19.5 per cent.

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Reading Time: 2 minutes

“Coherent and consistent procedures for investment licensing” are the target of Vietnam’s administrative reforms through 2015, official media reported on August 28.

Reading Time: 2 minutes

OneStopShop“Coherent and consistent procedures for investment licensing” are the target of Vietnam’s administrative reforms through 2015, official media reported on August 28.

In the past, many businesses complained about red tape and complicated and inefficient administrative procedures, the Vietnam Chamber of Commerce and Industry (VCCI) said. A poll of around 8,000 companies showed that procedures related to land, construction, and investment were “the most tortuous.”

Tran Thi Bach Van, director of the Ho Chi Minh City-based Tri Tue Tourism Trading & Advertising Services Co. Ltd, said that 10 years ago her company asked to develop a tenement project in the city’s Binh Thanh District, but has yet to be done with the formalities,” Thanh Nien News wrote.

Pham Hoang, deputy chairman of the small and medium-sized enterprises association in the Central Highlands province of Lam Dong, said in 2010 six companies invested in a 54-hectare ecotourism project in Lam Dong’s Da Lat Town. In 2011, they got an investment certificate and began work, but a year later authorities decided to take back part of the land to afforest it, and told them to continue their project on just 8 hectares, he said. The six investors had to give up on the project after putting in much effort, including years spending on completing paperwork, he said.

“Many foreign investors don’t want to invest in Vietnam because of such shortcomings,” he added.

The director of another company said for a project it takes around 4 years from the time it is approved until it gets a license. The company is meanwhile losing out money on interest payment for loans because it cannot proceed.

Pham Tuan Khai, deputy chairman of the Advisory Council for Administrative Procedure Reform, said the problem lies with officials adn lawmakers, asking how some projects only need a few months while others have to wait for years. The question of whether investors can go to court when an investment procedure is inappropriate and causes them difficulties should also be considered, he said.

However, statistics show that despite the shortcomings, foreign direct investment is still on the rise in Vietnam. The country has received investments worth $12.63 billion in the first 8 months of 2013, and economists believe that the full-year target of $13-14 billion will be achieved or even exceeded. The investment in the period represents a year-on-year increase of 19.5 per cent.

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