Vietnam attempts to tighten control over FDI projects (14/10)
14/10/2010 - 7 Lượt xem
Dung said MPI has submitted
to the Government the draft decree guiding the implementation of the
2005 Investment Law which, if approved, will replace the currently valid
Decree 108 promulgated in 2006.
“The draft decree will only make
some changes in comparison with the decree 108. However, the issues it
mentions are really “sensitive”.
Whom to allocate golden land?
In
many cases, though FDI projects have small investment scale, but
investors still can be allocated large land plots, which is really a big
waste. “The regulations need to be amended so as to allow us to use
land in the most effective way,” Dung said.
He went on to say
that management agencies have been urged to be choosier in licensing FDI
projects. Since there is no regulation about the required minimum
investment capital, many tiny investment projects have been registered,
including the projects capitalized at $10,000 only, or less than 200
million dong.
Le Viet Dung, Deputy Director of the Binh Duong
province’s Department of Planning and Investment, said it is necessary
to “use the hands” of the Ministries of Construction, and Industry and
Trade to “filter” tiny projects. Besides, management agencies can also
install “technical barriers” to select projects. For example, the
projects that may pollute the environment and the projects that may use
too many labourers will not be licensed.
Besides, according to
Nguyen Mai, Chair of the foreign invested enterprises’ association,
Vietnam should require foreign investors to use modern and green
technologies or the technologies that allow to save energy and deal with
the climate changes. He has warned that if Vietnam continues accepting
more metallurgy projects, the country will not be able to provide enough
electricity to the projects.
Under the current regulations, Vietnamese management agencies do not examine investors’ financial capability, while foreign investors prove their financial capability themselves. As the result, a lot of foreign investors still registered their investment capital, even though they did not have money.
Dung from MPI stressed that FDI projects mean the projects run with foreign sourced money, not the projects whose investors are foreignwith domestic capital. In many cases, foreign investors do not bring foreign money to Vietnam to run registered projects, but they try to seek capital right in Vietnam after they obtain investment licenses.
In order to deal with the problem, some provinces require foreign investors to pay the security/caution money, worth five percent of the total investment capital, for the right to keep the land. If the investors do not implement projects as scheduled, they lose the (security) money.
Source: Dau tu
