Stay-away investors neglecting completion process

After the government in late November assigned ministries and localities to prepare necessary conditions to welcome new capital, localities were eager to appraise and approve dossiers to grant investment licences.

Stay-away investors neglecting completion process, illustration photo/ Source: freepik.com

The people’s committees of provinces and centrally -run cities such as Hanoi, Hai Duong, Bac Giang, Nghe An, and Ho Chi Minh City are proactively approaching and supporting investors to remove pending difficulties and accelerate disbursement of such capital.

The committees require their local authorities to speed up handling of business investment procedures, and simultaneously deploy electronic public administrative services for investors.

However, according to localities like Hai Duong, one of the reasons causing delays in handling business investment procedures is the absence of investors.

“Post-pandemic, many foreign investors work online more often. They authorise consultant and law firms to complete the investment procedures. They often give authority to contractors during the process and only arrive in Vietnam to take the facilities into operation,” said Nguyen Thi Thuy Hang, deputy director of Hai Duong Industrial Parks Management Authority.

However, Hang said that the absence of investors makes it difficult for authorities to guide the details of many business procedures.

“We also suffer the pressure of complying with the deadline to license projects. Project dossiers take a lot of time to read. They are the basis for applying for firefighting permits, construction licences, and environmental impact assessment reports. If there are documents missed and the investor is not present to promptly supplement them, then it also prolongs the licensing period,” Hang added.

She also said that in many cases, investors granting absolute authority of construction of facilities to contractors has caused unexpected violations. For example, many have constructed projects without a licence, and as a result, the investors have to suffer the fine.

According to other localities, this most often occurs with small- and medium-sized projects. According to information from the Vietnam Chamber of Commerce and Industry, over 80 per cent of foreign-invested enterprises in Vietnam have capital below VND100 billion ($4.2 million) each, a quarter employ fewer than 10 workers, and just over half have fewer than 50 workers. Thus, localities expect tight cooperation with investors to accelerate the licensing process.

Prime Minister Pham Minh Chinh at a conference with foreign-invested enterprises (FIEs) in October said that the country would provide optimal conditions for FIEs to develop long-term and healthily compete with those from other economic sectors.

“Ministries and localities need to continue effectively implementing policies and laws; review and adjust foreign cooperation policies to suit reality; and listen to the ideas of businesses and investors to settle all arising problems,” PM Chinh said. “Ministries and localities should seriously listen to such recommendations in a spirit of sharing, understanding, and companionship.”

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