Ho Chi Minh City: Pioneering Administrative Reform in Investment Licensing

In the first nine months of 2006, the total foreign direct investment capital (including capital increase of operational projects) was US$1.3 billion, doubling the figure of the same period of a year earlier. The investment of many international giant groups also attracts the investment of parts suppliers. This good signal shows the bettering investment environment in Ho Chi Minh City and the supports of municipal authorities for investors.

 

At present, many localities have invested in improving infrastructure and introduced attractive investment inventive policies but they hardly surpass Ho Chi Minh City in attracting foreign investment. First of all, the favourable conditions in location and human factors have long turned the city into a busy area. For decades, Ho Chi Minh City-Saigon maintained the position of a largest economic centre in Vietnam. Expanding service sectors, infrastructure system, banking and finance, transport system and seaports and skilful and disciplinary workforce help investors minimise lots of production costs.

 

As for the municipal government, it is easily seen efforts in streamlining administrative procedures has positive effects on competent organisations and branches to quicken the settlement of investors’ requests. Competent bodies are very active in doing their works and reducing paper works. The Ho Chi Minh City’s leaders organised many trade and investment promotion programmes in Vietnam as well as other countries to directly meet concerned investors and listen to their ideas and complaints.

 

The Department of Planning and Investment has applied several renovations to the licensing process. From April 2004, the department began granting licenses through internet. The waiting time for the licence is only two days after the department receives the eligible applications (a shortening of 13 days compared with the regulation).

 

The department also applies ISO standards to two types of projects, namely registering projects and assessing projects. The standardisation of the professional processes helps optimisation of implementing steps and creation of the best utilities for investors.

 

As for projects that are not allowed to register online, the Department of Planning and Investment also shortened licensing period. With a regular feedback division, the department organises a one-door mechanism to facilitate works of both requesters and authorities. The procedure is increasingly streamlined and the settlement process is significantly shortened. To do this, an information technology system must be regularly upgraded to ensure the swiftness and accuracy.

 

The Department of Planning and Investment instructs and receives applications, provides information for investors and cooperates with relevant bodies at various levels to appraise applications of foreign investors and matters related to foreign investment. The Ho Chi Minh City People’s Committee appoints a vice chairman to be in charge of foreign investment, who directly instruct and resolve related matters, reports to the Standing Committee about projects out his/her authority within five days and reports immediately to the city’s chairman in case of urgency. These are important and outstanding activities of Ho Chi Minh City in supporting investors.

 

The cooperation also reflects in regular meeting between city’s authorities with investors and consultants and exchange conferences for competent bodies and foreign-invested companies. The Department of Planning and Investment and the Trade and Investment Promotion Centre regularly update socioeconomic, investment and policy information on its websites in English. The Department of Planning and Investment has published small quarterly handbooks about the seriocomic situation and current policies in four languages of English, Chinese, France and Korean (5,000 copies for each language) to send to Vietnamese embassies in major markets and consulates.