In 2005, the country issued the Law on Investment and the Law on Enterprises to regulate aspects relevant to business establishment, management, investment among others. However, the implementation of these laws remains problematic due to some overlapping and contradicting provisions.
The governing scope of the laws should be separated but Article 50 of the current Law on Investment covers the establishment of enterprises which should be incorporated in the Law on Enterprises.
On the other hands, a part from investment certificate, foreign investors have to acquire a number of other papers from land, construction, environment authorities.
To further lure foreign investment, Viet Nam should focus on amending general provisions of the Law on Investment to overcome the contradiction between the Law on Investment, the Law on Enterprises and other relevant ones.
Investment certificate and business registration certificate should be merged into one. Procedures regarding the implementation of projects, capital contribution, transfer of investment projects, establishment of representative offices and branches should be quickly improved.
Conditions of administrative procedures are complex, lengthy and irrelevant to realities while the review and assessment of administrative procedures are sometimes not scientific and objective.
At the conference to review 25-year FDI attraction, Prime Minister Nguyen Tan Dung stressed the need to drastically reform administrative procedures to boost the FDI inflow.
Investment-related laws and policies must be perfected towards comprehensiveness and transparency. Regulations on investment conditions for foreign investors, on mergers and acquisitions involving foreign elements should be clearly stipulated.
Inspection and supervision of approved foreign-funded projects need to be strengthened.
Inferior levels were tasked to put a stop to slow project approval which may last two or three years. This can only be done if leaders of ministries, agencies and localities attach importance to enhancing the capacity of their staffs.
PM Nguyen Tan Dung also said good institutions and policies are not enough because institutions and policies are operated through administrative procedures and apparatus.
