New guidelines set to streamline investment

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Officials from the Ministry of Planning and Investment (MPI),  Ministry of Construction and Ministry of Natural Resources and Environment last week introduced the second draft of the long-awaited circular that guides the specific steps of investment administrative procedures.

According to the draft, investors must follow five steps. They include in-principle investment approval, announcement of land rental, approval of investment certificates, approval of construction plans and environmental impact assessment, and approval of construction license.

“This is only a circular, so it doesn’t change legal regulations. However, it does guide provincial authorities and investors in completing administrative procedures in a clear and transparent way,” said Phan Duc Hieu, deputy head of the Business Environment Division under the MPI’s Central Institute of Economic Management (CIEM) and secretary of the drafting team.

Although the government has been reforming administrative processes for years, investors still face rigorous procedures that cost them a lot of money and time.

According to a survey released two months ago by the Vietnam Chamber of Commerce and Industry (VCCI), it took an investor from 155 to 340 days on average to complete the 17 administrative procedures for an investment located in an industrial park. For an investment outside industrial parks, it took even longer.

The survey pointed out that investors, on average, spent 550-565 days completing the 33 administrative procedures.

The new circular, if adopted, would help investors save time and money during registration as it prevents overlapping requirements from local authorities.

“Provincial authorities will pass on investor applications to higher authorities for examination and approval, instead of requiring investors to take that step,” said Hieu.