HCM City Renews Investment Attraction Mechanism

HCM City Renews Investment Attraction Mechanism

Ho Chi Minh City is promoting its online licence granting services. From September 1, foreign investors, who want to do business in Ho Chi Minh City, can access all the information they want about the market and the city's investment policies in 24 hours by contacting the city's Department of Planning and Investment.

Nguyen Huu Tin, vice chairman of the Ho Chi Minh City People's Committee, affirmed that from September 1, it would no longer take a long time for foreign investors to access information and complete investment procedures.

This is because the Ho Chi Minh City Department of Planning and Investment is preparing a database for meeting investment demand for basic information about the city's investment policies, master plans for land, market and price services.

In the past, it was difficult for investors to attain lists of projects calling for foreign investment and 1/2000 scale detail master plan maps of the city's inner areas, as well as information about construction density, road landmarks, diameters and master plans of industries. However, from September 1, all these details will be easily accessible. They can even get the information they need via email or airmail within 24 hours in some special cases.

Detailed 1/500 scale master plans will be provided for investors when they develop their projects. From September 1, investors can contact the city's Department of Planning and Investment to receive a card for a special entry for investors at the airport. The People's Committees of districts will be responsible for supporting site clearance and compensation. For major projects, the city will pay costs in advance for site clearance and compensation and investors will pay when they receive land and investment licences.

The second draft of a rule on cooperation among local departments and agencies was approved on July 21 and the rule is expected to be issued this August.

Alongside the new rule, there has been another new signing that instructs Ho Chi Minh City to set up an agency in charge of foreign investment led by a vice chairman of the People's Committee. The agency will hold weekly meetings to help investors overcome difficulties and obstacles.

The local Department of Planning and Investment admitted that in the past it took investors between six months and one year to complete their projects. Now, they can save a third the time in licence granting thanks to the application of the new method.

Ho Chi Minh City will also reform its administrative procedures. From the third quarter of 2004, foreign investors will be able to visit a website to fill in sample documents and then come to the city's Department of Planning and Investment to complete their registration procedures or receive sample tables. They can declare their business situation in these forms and submit them on the spot like those who register for domestic enterprise formation. They then can visit the website to find information about the progress of their licence granting.

Ho Chi Minh City has set a target of granting licences online for 80 per cent of foreign-invested projects late this year. In the past it took months to ask for permission to develop projects but, now investors would receive the answer within one day, Tin said .

To avoid cases in which some consultancy firms make money from investors by 'fabricating' more procedures, the local People's Committee has asked the Department of Planning and Investment to announce publicly the content of project evaluation and provide detailed guidelines on criteria for project development, as well as assign cadres to help investors when they implement their projects.

Another change is that investors will no longer have to travel between the local departments of taxation, customs and police. They can receive tax and customs codes and other licences in a few days after filling in sample documents and tables provided by the local Department of Planning and Investment.

• P.V