Red tape to be slashed for key projects

Businesses await further details that could see them greatly assisted in eliminating lengthy procedures, photo Le Toan

The Ministry of Planning and Investment (MPI) in August sent out proposals for consultation on a new draft amending the laws on planning, investment, public-private partnership investment, and bidding. If passed, the new rules will see a massive streamlining of associated paperwork in these areas.

According to the proposal, ventures in priority industries such as high technology, research and development, semiconductor circuits, design technology, component manufacturing, and others can be implemented under a “green channel” mechanism.

Priority projects will not have to carry out various procedures to be granted licences, permits, confirmations, and other requirements in construction, environmental protection, technology transfer, and fire prevention following the law provisions. This cutting of red tape could see an average of 250 days saved compared to regular full procedures.

According to current regulations, each procedure requires its own documents such as for investment licences and business registration, while some procedures like gaining construction licences require numerous steps.

“Numerous investors want to implement the next phase of the project, but many procedural problems in the first phase make them hesitate,” said Nguyen Duc Long, deputy head of Bac Ninh Industrial Zones Management Board at a meeting with the MPI at the end of August.

“Removing these headaches, which can take unlimited time, will not only save significant time and costs, but minimise risks for investors. Moreover, they will clearly see the support of state management agencies for projects that are necessary for the economy, enhancing their trust.”

Dang Xuan Quang, deputy director general of the MPI’s Legal Department, clarified that the pre-registration and post-inspection mechanism would not be applied for all projects.

“Special procedures will be applied for projects in special fields that need to mobilise investment, and they must be implemented in industrial parks, economic zones, high-tech zones, and functional areas in such zones,” Quang emphasised.

“These areas have been fully funded in favourable technical infrastructure, ensuring regulations on fire prevention and general planning for construction. So the risks with shortening related processes are controlled and minimised,” he said.

Furthermore, investors will have to carry out their commitments on the scale, technology, implementation progress, compliance and regulations according to the laws on land, construction, environmental protection, technology, and fire prevention, the draft said.

However, industrial zone management boards said that other content should be discussed, especially the mechanism for monitoring and post-auditing projects that are applied in the green channel, and how to coordinate and conduct post-auditing that is the responsibility of various state management agencies.

Such boards believe that there should be a form of commitment so that investors do not under-commit and not make excessive commitments compared to the wishes of the state management agencies. For example, differences in criteria and standards, such as fire prevention standards in G7 countries, which are higher than those of Vietnam, are not currently accepted.

Some experts have proposed an early warning mechanism for investors, and another for them to correct non-serious violations, avoiding suspended operation.

“The monitoring and post-audit mechanism is not only to fulfill the responsibility of state management agencies, but also to protect investors, which we are welcome to receive,” said a Ministry of Justice representative.

Businesses say they are still awaiting further details. Nguyen My Ngoc, deputy general director of Kinh Bac Urban Development Corporation, is waiting for the procedures to become more transparent and specific.

“Implementing quick procedures is suitable for high-tech projects that need to be carried out quickly. There could be a supporting team on every management board to ensure that any problems or difficulties are immediately resolved,” Ngoc said.

Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said that amending the four laws aims to overcome limitations to simplify administration, facilitate investment and production, and promote decentralisation to ensure the effectiveness of state management.

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