Administrative Reform in Implementation of Investment Projects

Overlapping and lack of specific guidance
According to the results of a recent survey by Vietnam Chamber of Commerce and Industry (VCCI), investment land and construction procedures are considered the most difficult groups of procedures for businesses. The administrative procedures in the field of business registration, investment certificates, tax, environmental resources, land, construction, customs and social security are assessed as "bottlenecks" by enterprises, which should be strengthened in the future to improve the business environment and facilitate businesses.

According to VCCI, the laws on procedures and investments are complex, overlapping and inconsistent. Through the review, if the investor intends to invest in the construction of a plant (related to 4 fields of investment, land, environment and construction) though it is the first procedure, the administrative procedures are subject to the regulations of 5 related laws, 10 decrees, 9 circulars and a large number of complex provincial guidelines which are often difficult to fully take into account. Not to mention the inherently complexity, the documents are regularly revised and changed, creating differences and overlaps that only the implementing local agencies and businesses can find out when applying.

VCCI statistics show that the first stage of "entering market" includes at least 18 official administrative procedures official in 4 areas of investment, land, environment and construction.

Besides, the lack of regulations and specific instructions about investment conditions leads to different understanding and application, making it difficult for investors, and slowing down the process of granting investment certificates and creating inconsistencies in the policy review on project investment. Inconsistent and impractical regulation on investment incentives, the problems arising from the land law, many unknown clues or those conflicting with the time of the administrative procedures, duplicate records, and unpredictable time required for resolution all make the mess even more troublesome.

To issue the Administrative Procedures Law
According to Mr Dau Anh Tuan, Deputy Director of Legal Department , VCCI said that the administrative procedures for implementation of the investment project is one example of the overlapping, conflicting and lack of order associated with the actual investment. So, in short, it is necessary to develop administrative procedures law according to the investment process of business, including procedures: introducing location, planning, consulting, investment certificates, environment, land acquisition, land rent price, certificates of land use rights, and construction procedures.

In addition, Mr Tuan said that Vietnam should also review the entire process, revise and simplify records, standardize forms, remove unnecessary paperwork and build standard models to encourage localities to apply it. This is an omnibus law which is expected to be implemented after 2015.

In the medium and long term, according to Mr Tuan, it is urgent to amend the relevant laws such as the Investment Law, Construction Law, Land Law, Law on Environmental Protection and issue Administrative Procedures Law (including the codification of the legal regulations of administrative procedures and simplify administrative procedures. It is possible to issue a Decree or Law on "The Administrative Procedures" for a number of important areas related to businesses and people, for example, the Law on Investment and procedures of business, other provisions contrary to this law are repealed. Then, Vietnam will have one comprehensive set of administrative procedures for the investment of companies.

The more administrative procedures are issued, the more complex they become; they do not simpler. The circulars issued by the ministries or agencies make the investment environment more complex. Despite being Vietnamese and investing in Vietnam, even we see it as vague as the matrix. Foreign investors do not know how to do it right. For example, in 2005, the Prime Minister has decided not to build high-rise buildings in urban areas, and pending approved high-rise housing projects were getting “hot”. This kind of shock stems from the lack of mechanisms for investors to protect themselves.

Mr Nguyen Phuong Bac, Deputy Director of Department of Planning and Investment of Bac Ninh
The ministries and central agencies should soon issue a joint circular in this regard to guide localities to implement and clarify its approval and amendment of provisions related to investments and public-private partnership model. With many adjusted laws, we should follow the "one omnibus law", in which, one law will specify the sequence of investment steps. So it will be good for business environment and closer to life.

 

Mr Nguyen Hung Hue, Deputy Chief of Administrative Procedures Control in Economic Sectors, Administrative Procedures Control Department (Ministry of Justice)
To reform administrative procedures in the implementation of investment projects, it needs to standardize, specify the selection of investors under three forms (land use right auction, bidding to select investors having land use right and designate land investors having land use right); abolish procedures for investment registration, verification and granting investments certification to reduce duplication, overlapping the content of administrative procedures.

In addition, it is not required for investors to perform the procedures for granting planning permission, the evaluation and approval of planning tasks. We should abolish the procedures to approve general plan on compensation, support and resettlement for investment projects which are not submitted to the state agency for approval or not granted investment certificates.