Red tape bothers foreign firms
Many foreign investors in Viet Nam claim that some administrative procedures are too cumbersome, especially those involving customs and tax. They were speaking at a conference in Ha Noi in 08 Oct organised by the Viet Nam Chamber of Commerce and Industry (VCCI) and foreign enterprises. The theme was on reforming administrative procedures.
In attendance were local representatives of the European Chamber of Commerce (Eurocham), the Korean Chamber of Commerce (Korcham), the Japan Business Association, the French Chamber of Commerce and Industry, and the Taiwanese Chamber of Commerce.
Most said that bureaucratic red tape wasted too much time and money.
Representatives from Korcham even said the interpretation of legal systems and administration procedures applied quite different in various localities in Viet Nam. They also wondered about sometimes having to pay tax on overseas gifts donated to help Viet Nam during natural disasters. However, the director of the General Department of Taxation’s legal office, Phung Bich Huong, said that the donations should not be taxed.
The chairman of Eurocham, Alain Cany, said administration procedures often caused additional costs.
"Viet Nam is very concerned about competitiveness," he said. "In terms of exports, it is more difficult this year becaue of the global crisis. "Sometimes the Government thinks about depreciating the Vietnamese dong to make exports more competitive. "However, if you reduce the unnecessary costs created by the bureaucracy, Viet Nam could achieve the same results," Cany said.
Hong Sun, secretary general of Korcham claimed that compensation costs for land had increased between 1.5 to five times under a recent Government decision. He said this would negatively impact on his investment because his business plans had already been drawn up. "Changeable policy is one of the biggest problems challenging foreign investors in Viet Nam," he said.
To deal with the problems, the Government has established a working group and asked the ministries and State bodies to implement Programme No 30 on streamlining administration procedures.
Ngo Hai Phan, deputy chief of the working group on administration reform, said the group had checked more than 5,700 administration procedures across the nation and would streamline at least 30 per cent of them.
Cany said this would benefit all companies, including Vietnamese companies, especially small ones.
Vu Tien Loc, chairman of the VCCI, said the Government should maintain a working group to thoroughly implement the streamlined procedures. He said he and local authorities greatly appreciated the opinions and recommendation of foreign associations on continuing reforms. "It is an effort to sharpen the competitive edge of Viet Nam and refurbish the nation’s business environment," Loc said.
