Administrative procedures continue to be time-consuming and approval processes cumbersome, creating hindrances and slowing down investment projects in Vietnam, foreign business representatives complained Monday.
At a meeting in Hanoi with Prime Minister Pham Minh Chinh, John Rockhold, chairman of AmCham Hanoi, and other foreign business representatives urged that such bottlenecks be removed.
Such troublesome practices undermine Vietnam’s competitiveness, Rockhold said. He suggested that the Vietnamese government clear regulations that hinder effective deployment of foreign-invested projects and reconsider new laws that may place a heavier compliance burden on them.
AmCham members will work with the Administrative Procedures Control Agency under the Government Office later this month to share their experiences and get updated on the government’s latest initiatives regarding administrative reforms, he said.
Another concern expressed by the reps was the reliability of power supply and access to renewable energy. They wanted the government to ensure sustainable, reliable and affordable power supply.
AmCham stands ready to work with the Vietnamese government in boosting green growth and dealing with challenges in attracting foreign investment, Rockhold said.
David Whitehead, vice chairman of the Australia-Vietnam Chamber of Commerce (AusCham) and a member of the Vietnam Business Forum, urged the Vietnamese government to improve the approval process, set clear regulations on land use, tax incentives and work permits, and trim unnecessary business conditions.
Those moves will help attract large-scale FDI projects in Vietnam, especially in emerging industries such as semiconductors and chips, he said.
Chief representative of the Japan External Trade Organization (JETRO) in Hanoi, Takeo Nakajima, noted that Vietnam has been Japan’s second largest outbound investment destination for six consecutive years. Vietnam is poised to grow strongly in the years to come despite a dim global 2024 outlook, he said.
Takeo Nakajima suggested that Vietnam focus on developing manufacturing and stimulating innovation. The country should work to improve education, health and finance sectors and remove legal hindrances for investors, he said.
Strengthening connectivity
Ng Boon Teck, a representative of the Singapore Business Group (SBG), spoke about enhancing logistical connectivity between Vietnam and neighboring countries.
Citing the “super port” in the northern province of Vinh Phuc as an example, he noted the immense advantages it enjoyed, given its proximity to and links with the capital city of Hanoi, the Noi Bai international airport, Hai Phong seaport, and several provinces bordering China.
SBG wants to turn the “super port” in Vinh Phuc into a transshipment hub with the aim of reducing transportation costs, Teck said.
He also informed the PM that the group has signed a memorandum of understanding with Vinh Phuc authorities in August on training personnel and experts.
Singaporean companies can offer cutting-edge technologies and knowhow to beef up the logistics industry in Vietnam, Teck noted.
He recommended that the Vietnamese government act to boost trade flows and cooperation with neighboring countries; enhance connectivity among northern border provinces, and between China and ASEAN; and facilitate customs clearance with improved one-stop windows.
Sustainable development focus welcomed
Several foreign-invested businesses like DEEP C, Swire, SBG and Nike stressed the need for sustainable development and welcomed some of the government’s initiatives in this regard.
Vu Huong Giang, director of government and public affairs for Vietnam, Thailand and Cambodia at Nike, Inc., called on Vietnam to consider sustainable development a top priority. She welcomed the government’s move to allow direct purchase of renewable power between producers and buyers.
In addition, the Vietnamese government should invest more in technology and knowhow to catch up with continuous advances in the world, she said.
Josh Williams, chief representative of John Swire & Sons in Vietnam, which acquired Coca-Cola operations in Vietnam earlier this year, hailed the government’s commitment to net-zero emissions by 2050. His company would contribute to the goal with reusable bottling products and other measures, he said.
Lucy Christie, senior director of Owner Relations & Government Affairs at Marriott International, expressed confidence in Vietnam’s economic growth and enabling policies.
Marriott International was committed to helping Vietnam achieve its net-zero emissions goal, she added.