What is the key point in the instruction?

The Department of Foreign Investment is the agency compiling this instruction. In our viewpoint, the core point to facilitate the second wave of foreign investment into Vietnam originates from the inside needs of the investment and business environment.

We need to try to build a completely favourable environment for all investors, which is appropriate to international practice, the laws and policies of Vietnam.

The draft instruction will point out the current problems in attracting FDI. Based on those problems, we will know the tasks that we must do to solve the problems and move barriers for investment attraction.

Provinces offering investment incentives that are higher than the government’s rules is a problem, isn’t it?

It is not the biggest problem in the current circumstance. The government’s policy is to give more power to provinces in managing and licencing FDI projects.

The fundamental problems are inside Vietnam’s environment. We have to identify problems and barriers that we created ourselves, including shortcomings related to organisation and structure, the system of polices as well as the management of enterprises on a daily, weekly and monthly basis. Those shortcomings need to be solved quickly.

How can we address the above shortcomings?

We must begin by specific tasks. In operations of businesses, we identify what are barriers: Customs, tariffs or the management of local government in site clearance? The supply of infrastructure elements like power and water? Problems associated with administrative formalities?

It is necessary to define such specific shortcomings so we can gradually pass barriers to improve the investment environment, not give general appeals.

Regarding the policy of giving more power to local governments for monitoring and licencing FDI projects, many people said that local governments can’t manage big projects. What is your opinion?

It is always a challenge for any task at the beginning due to lack of experience, but we completely believe in this policy. The government will have supportive measures to successfully implement that policy.

The job that we must do first is to train local officials to help them clearly understand their roles, the system of policies as well as the restructuring of the local machinery. The assistance of central agencies is also important in the early period.

Many people are talking about the second wave of investment into Vietnam. In your opinion, where does the second wave of investment begin: does it originate from the move of the international capital flow or Vietnam’s better investment environment and policies?

The open-door policy and the effort of the Vietnamese government in economic reforms, perfecting the system of policies and upgrading infrastructure is the decisive factor in attracting foreign investment.

FDI attraction in the past seven months proves that we are on a good pace. I think Vietnam needs to do more to complete its legal system, to manage and assist its current businesses to help them in production and become successful in Vietnam. At the same time, we need to speed up reforms toward the future and further perfect the investment environment.

Source: VNE