LG Innotek Vietnam Hai Phong Co., Ltd at Trang Due industrial park (Photo: baodautu.vn)
Hanoi (VNA) – Business confidence has increased among foreign directinvestment (FDI) companies in Vietnam, according to a survey conducted by theVietnam Chamber of Commerce and Industry (VCCI).
The survey, which involved the participation of 1,765 FDI enterprises in 21cities and provinces nationwide, showed that 13.2 percent of the firmsincreased their investment capital and 60 percent of them plan to scale up theirbusiness operation in Vietnam, which are much higher than the 2016’s figures of11 percent and 50 percent.
Prof. Dr. Edmund Malesky from the US-based Duke University affirmed that thisis the greatest optimism in the FDI sector since 2011, attributing the resultsto the Vietnamese Government’s policies to reduce the burden on FDI companies, including Decree 78/2015/ND-CPand the Investment Law 2014.
Online registration to set up business has been put forth while requireddocuments have been slashed down. In addition, initial investment certificateswere issued to FDI companies within 37 working days in 2017, as compared to 47working days in the previous year.
Procedures for tax code registration and adjustment of investment registrationcertificates have been simplified as well, according to the survey.
The results of the survey also revealed that 45 percent of businesses said thatthey had to paid “unofficial” costs for inspectors as well as customs clearanceand land-related procedures, which is lower than the rate of 50 percent in2016.
However, Malesky said that Vietnam should make more efforts to streamline administrativeprocedures for foreign investors. Tax and customs procedures remain greattroubles for FDI companies. Furthermore, relevant authorities should work for along-term and sustainable improvement in the reduction of “unofficial” costs.
Dau Anh Tuan, Director of the VCCI’s Legal Department, said that “unofficial”costs may hamper new investment flows from foreign countries, particularly thosewho are members of the Organisation for Economic Cooperation and Development(OECD).
Improvement in labour productivity and human resources will be among keyfactors for Vietnam to escape middle-income trap and capitalize on foreigninvestments, he added.-VNA
VNA
