Paperwork issues such as investment procedures and work permits are the issues that the foreign business association in Ho Chi Minh City considers to necessarily improve at the meeting between the leadership of Ho Chi Minh City and Representatives of associations. The sessions were held on February 22 by the People's Committee of Ho Chi Minh City.
Source: Internet
One of the first mentioned issues is the procedure for applying for a work permit and extension for foreigners in Vietnam. The assistance for these procedures from the city government has not yet reached expectations in term of timing and is still complicated for foreign direct investment enterprises (FDI). Mr Alain Cany, Chairman of EuroCham, shared about the process of extending the work permit for foreigners to himself, which is quite troublesome for each extension, even though he has lived and worked in Ho Chi Minh City for more than 20 years so far.
Examples of one of the difficulties shared by Mr Alain Cany: The last time he went on to extend the work permit as an advisor to the company where he had been the executive director, the licensing agency said he had no professional expertise and faced the risk of rejection. He said: “If a person who has been bonded to Vietnam like me could not get a license, then how difficult it would be for other cases?”
Another example about the complicated process of implementing a new license for foreign workers for experts, which is taking time and causing insecurity for investors, is the case of a Singapore company doing business in Ho Chi Minh City. To which, this company was aiming to switch from the model of a limited company into a joint stock company, according to sharing from Mr Seck Yee Chung, representative of Singapore Business Association in Viet Nam. Meanwhile, a more straightforward option is merely to update information instead of forcing workers to apply for a new license and perform a complete new procedure. Therefore, Mr Seck Yee Chung suggested that the authorities need to handle the administrative procedures faster, as taking time for too long will affect the operation of the business.
In order to create a favorable investment environment, the most crucial factor is the fair and transparent legal setting that can be predicted and arranged reasonably, according to Mr James Ollen, CEO of the American Chamber of Commerce in Vietnam (Amcham) in Ho Chi Minh City. Enterprises will be assured if the investment procedures and business licenses are handled quickly using e-government consistently. To which, it will open up many investment opportunities for new investors.
Also, at this meeting, the head of the city government committed and requested the authorities to shorten the time for the procedures for the business and affirmed that Ho Chi Minh City is focusing on improving the environment for investments as well as clarifying agencies' administrative responsibilities and each civil servant's public duties.
In addition, according to Mr Phan Van Mai, Chairman of Ho Chi Minh City People's Committee, to attract non-budget investment capital, the city is proposing several mechanisms, such as the PPP model. Besides, the National Assembly has and will consider the specific mechanisms and policies to develop the city. If approved, the city will accelerate infrastructure development earlier, including the Metro system. Especially the decentralization mechanism will be upgraded in order for the city to be more proactive in handling the procedures.
To summarize, Mr. Mai informed foreign investors that the city's priority is on factors that are related to infrastructure investment, especially traffic connection, in which, the investment budget for traffic projects will account for about 50% of the total investment budget. Particularly in 2023, this proportion will account for 70%. Contribution ideas to improve the investment environment of foreign enterprises will be absorbed and implemented by the city in the coming time.