Claims, petitions and disputes between foreign investors and agencies are escalating in volume and complexity, said Deputy Minister of Planning and Investment Vu Dai Thang at a workshop in HCMC on June 22.

A representative speaks at the workshop held in HCMC on June 22

Speaking at a workshop jointly held by the Ministry of Planning and Investment, the Ministry of Justice and International Finance Corporation (IFC) to seek solutions that avoid and minimize international investors’ need to raise petitions and disputes, Thang noted that these petitions and claims are mostly related to land, tax, rent for land, shareholding issues, personnel, the environment, business registration procedures and investment licenses, based on results from reviews and inspections conducted by the ministry.

Besides this, complications resulting from regulations on canceling projects, revoking licenses, taking back land, winding up businesses and the rights of mineral exploitation easily lead to disputes and petitions, according to the minister.

It is necessary to deal with these rising cases with effective solutions to avoid international disputes or a reduction in investors’ trust and to enhance the local market’s attraction, Thang stressed.

The deputy minister said the policy on attracting foreign investment in Vietnam in the new period not only includes measures for attraction but is also aimed at supporting investors.

“Current investors’ satisfaction will positively facilitate the country’s investment expansion, and attract more investment capital,” Thang said, adding that the State agencies should promptly present solutions in line with existing laws to address the problems.

At the workshop, representatives of foreign investment management agencies in various localities highlighted the dramatic growth in investors’ petitions and claims, which could turn into international disputes between foreign investors and the government. In addition, the representatives shared the agencies’ existing solutions, focusing on compromises and reconciliation to minimize damage from disputes.

An IFC expert suggested that Vietnam should set up a comprehensive system with the aim of preventing disputes and should consider establishing a Systemic Investor Response Mechanism over the country’s economy to help the government favorably evaluate, inspect and govern unexpected cases as soon as possible.

In 2018, Vietnam will witness the 30-year milestone of foreign investment in the country. It had entered into a partnership with 127 countries and territories as of May, initiating over 25,600 projects with total registered capital of some US$323 billion, of which some US$179 billion was disbursed.

SGT