Experts seek solutions to improve investment environment in Vietnam

The dialogue attracted more than 200 foreign-invested enterprises (FIEs) and leaders from cities and provinces in the southern region, all hoping to improve the investment environment.

Speaking at the event, Vo Van Hoan, Vice Chairman of Ho Chi Minh City People's Committee, said, "With current geopolitical developments and ongoing trade competition around the world, the economic picture does not have many bright spots."

Seck Yee Chung, co-head of VBF Investment and Trade Working Group, analysed the market entry conditions applicable to foreign investors.

According to Chung, VBF's members said authorities should be more flexible regarding investment registration certificates for foreign firms. There is also a backlog in some areas.

“The timeline to process dossiers is longer than the timeline prescribed by law. It can take more than one month for enterprise registration certificates to be adjusted, while the regulatory timeline is three working days,” he added.

“We respectfully suggest that licensing authorities consider allocating more human resources to facilitate procedures within the designated timeline,” Chung added.

Colin Blackwell, head of VBF Human Resources Group, commented on the processing of work permits for foreign executives and specialists.

“This issue is a key concern for the entire foreign-invested community in Vietnam, with consistent feedback from VBF members. An example is the EuroCham Business Confidence Index survey, with feedback from over 200 companies, showing that work permit processes continue to present challenges, particularly for businesses seeking to bring in executives and specialists who play critical roles in transferring technical and specific industry expertise,” said Blackwell.

While new legislation has introduced minor improvements, only three per cent of the surveyed businesses reported significant changes in the work permit process.

“We see an opportunity to streamline these regulations on the management of foreigners working in Vietnam, making the process more efficient and aligned with global standards, closer to how multinational companies' HR departments operate,” he added.

Blackwell recommended flexibility and understanding in documentation requirements.

For high-tech and green growth sectors, we ask for some flexibility in the documentation needed for work permits. These industries are evolving quickly, and standard qualifications may not yet exist in Vietnam. Flexibility would help Vietnam attract top talent in these emerging sectors and knowledge transfer, which are vital for the country’s future.

Moreover, the geographical validity of work permits must be expanded. “Current regulations requiring foreign employees to apply for a work permit at their intended place of work and submit updates when they are sent to work in different localities, which is impractical,” he said.

Instead, he believed that it would be more effective to issue a single work permit at the place of business registration and only report to the province when the employees are sent to work for more than 30 days in another locality.

Tran Anh Duc, co-head of VBF Investment and Trade Working Group, also raised issues about aviation infrastructure and congestion at international airports that are affecting the experiences of foreign investors and businesses arriving in Vietnam.

However, Duc emphasised that despite many challenges, foreign investors are still optimistic about the potential of Vietnam's logistics market. With a strategic location in Asia, along with large domestic demand, Vietnam has many opportunities to become an important production and logistics centre in the region.

“However, to attract and retain investors, Vietnam needs to improve transportation infrastructure, reduce logistics costs, and develop sustainable solutions in green transportation and logistics,” Duc suggested.

The Vietnam Business Forum (VBF 2024) took place this morning in Hanoi, themed "FDI enterprises pioneer in implementing green growth strategies" and chaired by Prime Minister Pham Minh Chinh.

Foreign-invested enterprises are clamouring for stronger local factors to help boost direct inflows of funding in innovation.

The Vietnam Business Forum (VBF), in collaboration with Ho Chi Minh City People's Committee, will host a dialogue under the theme: “Driving Sustainable Growth: Optimising Economic Ecosystems, Technology, and Energy” on September 18.