Last updated: Tuesday, February 19, 2019


Investors Concerned About Changeable Environmental Standards

Posted: Thursday, June 21, 2018

A survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) showed that frequent changes in policies send enterprises and investors into dilemma.

Regulations on environmental protection standards are stated in different legal documents and are subject to frequent changes, making it difficult for enterprises and investors to adapt.

This is one of the most common difficulties faced by enterprises when they prepare and carry out investment.

Reportedly, some companies built wastewater treatment plants and used chemicals required by the International Convention on Environmental Protection and required by existing industry standards. However, just after a short time after their facilities were put into operation, industry standards were changed, supplemented, and added with new regulations, forcing enterprises to make necessary changes to their facilities to meet new regulations.

Although they proposed to delay the system upgrade in order to test wastewater treatment standards. However, their requests were turned down by regulators with the citation referred to the law. This cost them a great deal of time and money.

In addition, they also complained about inadequacies in construction investment in this field.

Specifically, typical difficulties are incompatibility and inconsistency in the introduction of construction sites, unclear timing of planning licensing under the Law on Construction, the Law on Investment and the Law on Housing. Others include inconsistent time of determining land-use demand and related documents.

Unreasonable, overlapping regulations in laws on investment land, environmental protection, bidding and management of State capital invested in enterprises are also mentioned.

Remarkably, the regulation on requirement capital imposed to investors in the auction of land-use rights under the Law on Real Estate Business and the Law on Land; generic regulations in the Law on Investment, the Law on Land and the Law on Bidding on the selection of investors in the auction of land-use rights auctions and projects associated with land-use rights; and disagreeing regulations on procedures for environmental impact assessment under the Law on Investment and Law on Environmental Protection.

These restrictions result in more unnecessary costs for enterprises although they have long existed.

According to the Central Institute for Economic Management (CIEM), difficulties faced by businesses are resulted from the lack of cooperation in enforcing laws concerning preparation and implementation of investment projects.

However, it is worth mentioning that many inadequacies and shortcomings have been pointed out but authorities concerned have not yet been "ready" to remove them when they reviewed laws.

CIEM President Nguyen Dinh Cung said: “Enterprises cannot grow when they are suppressed by regulations that reflect old thinking, out-dated management, and economic deficit.”


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