Vietnam should change regulations in the Investment Law and Business Law as soon as possible to remove barriers in trading and investments, heard attendants at a conference held in Hanoi August 11.


The conference entitled ‘Amending and supplementing laws on investment and business’ aimed to collect ideas from organisations and enterprises on the conflict and overlaps between the Investment Law and Business Law 2014 and other special laws. These ideas are expected to help improve the business environment and the country’s competitiveness.

Phan Duc Hieu, deputy director of the Central Institute for Economic Management (CIEM) said management agencies should review the laws such as the Public Investment Law, the Investment Law and the Land Law to remove shortcomings when implementing investment projects.

Hieu said the administrative procedure relating to investment projects focused on three agencies including the Department of Natural Resources and Environment, the Department of Construction and the Department of Planning and Investment. Provincial people’s committees often collected ideas from three departments when granting investment licences to a project.

This is the reason that it often costs investors a lot of time and money to ask for opinions from all three agencies, he said.

Nguyen Dinh Cung, CIEM’s director said the target of an investment project played an extremely important role. At the provincial level, if the chairman of the People’s Committee agreed the target of a project, leaders of departments should follow.

“Our investment processes have been contrary to the world. The Government should have made land clearance before calling for investors. However, currently investors have asked for the projects’ approval then the State will help clear land for investors,” Cung said.

Former minister of Natural Resources and Environment, Nguyen Manh Hien said investment projects had to go through 24 steps at several agencies, causing overlaps.

Hien said the Government should be transparent, reducing administrative procedures in finding investors with capable financial ability.

Nguyen Van Duc, deputy director of Dat Lanh Real Estate Company in HCM City said administrative procedures at the provincial level should be concentrated on departments or districts instead of both. Currently, businesses had to ask for procedures at both agencies, negatively impacting the situation.

Duc said that in three periods of before 2006, 2006-10 and after 2010, each period had seen the addition of some procedures. A business often took one year for a project or the addition of five per cent to their selling prices for management and interest rate costs.

He also proposed to promote online administrative procedures as the country moves toward smart cities.