Problems relating to Trade and Investment on Vietnam
23. Inefficient administrative procedures, regimes and practices |
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Issue |
Issue details |
Requests |
Reference |
| (1) Vexatiously Delayed / Arbitrary Implementation of the Procedures for Approvals and Permits | - It takes much time for acquisition procedures on investment licences, approvals, etc., while the requisite documents and additional procedures differ from one officer in charge to another. | - It is requested that GOV takes step to: -- improves the systems crystal clear, and -- takes all means possible to mature the systems and the society. |
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| (Improvement) - Vietnam makes commitments in the BTA that both automatic and non-automatic licensing procedures must be implemented in a transparent and predictable manner. Vietnam agrees further that their measures will comply with international standards. This means a commitment to be no more administratively burdensome than absolutely necessary to administer the measure, to publish sufficient information so as to enable traders to understand how to obtain licenses and to ensure that the period of license validity is of reasonable duration and not so short as to preclude imports. Vietnam has made tremendous efforts to improve her administrative measures in an attempt to eliminate excessive bureaucracy and to conform to the commitments in the BTA. For example: -- The period of time for granting investment licenses for foreign investors is shortened. -- Enterprises have more freedom when engaging in import-export activities. Import or export licenses are remained for certain goods as defined by the Government from time to time. -- A number of licenses or approvals required to do certain businesses are abolished. Further, the Government establishes a committee to review and make suggestion to the Prime Minister on what business licenses or approvals need to be abolished from time to time. -- Many laws and implementing regulations are promulgated in the field of customs, settlement of administrative complains of individuals and organizations, taxation and etc. However, there are still many obstacles and difficulties to be dealt with. Implementation results of the laws and regulations sometimes are not high because of lack of cooperation among the government agencies or of the discrepancies among the laws and regulations themselves. - Vietnam has a very ambitious program for amending and updating her legal system in conformity with the BTA provisions. - Prime Minister Nguyen Tan Dung on 30 November 2007 promulgated Resolution No. 59/2007/NQ-CP (Resolution 59), "Providing measures to solve problems in construction investment and reform of administrative procedures applicable to enterprises". Resolution 59 sets forth, among others, procedure for issuance of investment licence for the domestic investment project, integration of business and tax identification number registration, the development of a national database on business registration online, payment of compensation for ground clearance upon the request of district-level boards for ground clearance compensation, integration of mineral survey with mineral exploration permits, and mineral processing with mineral exploitation. - It is provided that investment licence is issued within 15-business days from the date of filing application. |
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| (2) GOV's Nebulous Procedures on Investment Licenses and Approvals | - Relative to acquisition of licences and approvals of various kinds necessary for production start-up of MFS's new factory, MFS is faced with numerous ambiguities in law and in its employment. Their interpretation differs by Ministries and Agencies and their personnel in charge. It takes time and energy to cope with the work relative to establishment of a new factory operation. - Relative to establishment of locally incorporated legal entity, no clearly defined guidance is available on the procedures for acquisition of investment licence. It varies by persons in charge. In addition, it takes a long time from filing application to licence acquisition (8-months in the case of a Member Firm). |
- It is requested that GOV defines its implementation procedures clearly for each licence and approval based on laws. - It is requested that GOV takes step to: -- harmonise the requisite documents for filing application, -- standardise and harmonise the application procedures, -- eliminate differences between personnel in charge, and -- expedites the procedures for licences and approvals. |
- Law on Foreign Investment |
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