FDI firms still want to hold on to investment certificates

27-Mar-2014 Intellasia | Saigon Times Daily | 6:00 AM Print This Post

While the board in charge of amending the Investment Law is planning to streamline the procedures for establishment of new businesses, many foreign direct investment (FDI) enterprises maintain that they still need investment certificates as they believe this paper is the passport for them to get continued incentives.

Speaking at a dialogue between FDI firms and authorities in HCM City on March 24, minister of Planning and Investment Bui Quang Vinh said the ministry was seeking to simplify investment procedures through the amendments to the Investment Law and Enterprise Law. Toward this end, the ministry is considering removing the investment certificate and only maintain what would help authorities manage the FDI sector effectively.

However, after three dialogues were held in the north, centre and south of the country, the ministry has received mixed feedbacks, with some foreign firms expecting the issuance of investment certificates to be scrapped but others wanting it to stay.

Most firms in the latter group wanted to keep this certificate so that they could enjoy the government’s incentives prescribed on the certificate. In addition, this is a legal basis for investors to rent land or apply for bank loans, Vinh said.

However, Vinh said the ministry would consider abolishing the issuance of investment certificates, except for conditional industries, and those using much land, possibly polluting the environment or needing licenses to get investment incentives.

In the long term, investors would have no need to obtain any investment certificate any more, Vinh added.

If this comes true, almost all FDI enterprises would just register with authorities to set up a company like domestic investors.

Many FDI firms and representatives of investment licensing agencies at the seminar also complained about time-consuming business establishment procedures.

Le Manh Ha, vice chair of HCM City, said the city had faced a lot of difficulties in granting investment certificates.

Despite much effort, the city has missed the deadline in giving certificates to investors. Some investors have suffered a delay of nearly eight months due to much time spent on consulting ministries and doing other procedures.

As per the current law, ministries have to comment on an investment project within 15 working days but in most cases, they reply after one or two months, Ha said.

Some foreign firms also bemoaned other challenges in the business environment in Vietnam such as complicated tax and customs procedures and the shortage of skilled labour.

http://english.thesaigontimes.vn/Home/business/investment/33692/FDI-firms-still-want-to-hold-on-to-investment-certificates.html

 


Category: Economy

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