VietNamNet Bridge – Despite the Ministry of Planning and Investment’s ‘temporary’ guidance for foreign invested project registration, administrative procedures have all but ground to a halt.

Le Viet Dung, Deputy Director of Binh Duong Planning and Investment Department said that he has received many representatives of foreign investors to examine the local investment environment in recent days. However, “only a few investment applications have been made”.

“The lack of the legal provision for implementation of the law has left investors hesitant to file investment applications,” Mr Dung said.

He went on to say that the department would meet with a Korean investor in the next few days to discuss a Vietnam – Korea joint venture to develop a golf course, a trade centre and an apartment building. However, he does not know how to inform the investors about the new methods for investment application, because there is no legal formality for such procedures.

Outside Binh Duong, other cities and provinces, including FDI magnets HCM City and Dong Nai, Binh Phuoc, are facing the same problems.

An official from HCM City Investment Department said that in some cases, investors are required to file a ‘financial report on investor capability’, a document compiled by investors themselves. This regulation has been described as “ambiguous”, and the investment department itself does not know on what grounds reports can be considered lawful.

A Japanese investor told Tuoi tre newspaper on August 2 that he was planning to establish an ‘aesthetics’ hospital in HCM City, however, he is yet to make application because he cannot find clear regulations for investment registration. He may reconsider the entire project if procedures prove too complicated.

An official from the decree compiling committee said that he had been receiving complaints from local investment departments every day, with demands for guiding documentation to be enacted as soon as possible. However, as such guidance is very important it will take time to consult with the relevant authorities before it can be delivered.