Samsung raised several proposals to make life easier for South Korean businesses in Vietnam, calling attention to sluggish administrative procedures, especially when adjusting investment capital.
|The conference between South Korean businesses (including Samsung) and the Vietnamese government |
At a dialogue organised today (July 17, 2020) between the Advisory Council for Administrative Procedural Reform and the South Korean Embassy and businesses community, Choi Joo Ho, director general of Samsung Vietnam, raised three recommendations.
Regarding the Law on Investment, Choi Joo Ho said that if the scale of investment increases or decreases too much, businesses have to adjust their investment registration certificates. "However, this procedure is quite complicated and takes a lot of time, especially in the IT sector. For example, a Samsung subsidiary spent so long to deal with the procedure of adjusting investment registration certificate last year that they almost missed the plan on manufacturing new products," Choi Joo Ho said.
"Of course, thanks to support from Minister, Head of the Government Office Mai Tien Dung and government authorities, we accomplished this procedure. However, other companies could face the same challenges or even worse. I think businesses have to adjust their certificate if the investment scale decreases, but the government should review and consider simplifying administrative procedures so that investors can disburse their money easier," the head of Samsung Vietnam added.
Related to the advanced pricing agreement (APA) proposed by the South Korean government and businesses, Samsung Vietnam's representative hoped that the Vietnamese government would sign the agreement this year.
Additionally, the COVID-19 pandemic has caused a lot of trouble related to international customs procedures. South Korean and most export companies in Vietnam are challenged by importing material raws and exporting. Although customs clearance to China has been reopened, delays in the export of huge volumes of goods have caused troubles to businesses.
Thus, the general director of Samsung Vietnam proposed to temporarily use some of the available aircraft of Vietnam Airlines – which manages most direct routes to Europe – for cargo transport while all flights to Europe are closed. This will benefit both airlines and export businesses.
In addition to Samsung, the conference was attended by 320 representatives from the ministries of Industry and Trade, Planning and Investment, Labour, Invalids and Social Affairs, Finance, Natural Resources and Environment, Health, Construction, the State Bank of Vietnam, and representatives of several cities and provinces. This was also contributed by the participation of leading South Korean businesses in Vietnam like Samsung, SK, LG, Lotte, POSCO, Hanwha, CJ, Hyosung, LH, Shinhan Bank, Woori Bank, and some associations (KOTRA, KOICA, KoCham).
The conference includes three contents: listening to the difficulties and obstacles of South Korean businesses; plans of the Vietnamese government to cope and overcome challenges after the pandemic; and co-operation between the two countries in the time coming. The event aims to boost the economic relations of the two countries and confirm the determination of the Vietnamese government to improve the business climate.