logo
More clarity needed to ease investment procedures in Vietnam

More clarity needed to ease investment procedures in Vietnam

The Star09-05-2025

VCCI's research found that investors frequently struggle to navigate overlapping and frequently amended laws. — VNA/VNS
HANOI: Administrative bottlenecks continue to burden investment projects, despite recent reforms aimed at streamlining procedures, according to the Vietnam Chamber of Commerce and Industry (VCCI).
At the launch of its 2024 Legal Development Report, VCCI highlighted the 'green-lane' investment mechanism as a rare positive development in an otherwise complex regulatory landscape.
The streamlined process was introduced to amend the law on investment, and came into force earlier this year.
Under the mechanism, investors are required to complete only two procedures: obtaining an investment registration certificate and an environmental permit.
Other approvals, including those for construction, fire safety and technology assessment, are handled post-licensing.
According to the law's drafting committee, the process cuts administrative time by up to 260 days, reducing it to just 15 days.
However, the green-lane route is currently limited to certain sectors and geographic areas, such as industrial parks and high-tech zones.
Nguyen Thi Dieu Hong, legal expert at VCCI's Legal Department, noted that even this significant time saving only serves to highlight the scale of delays under the standard process.
'For a typical land-use project, an investor must complete at least 15 separate procedures in the preparation phase alone,' she said.
'These involve multiple laws, on investment, land, construction, environment, planning, fire prevention, and require working with agencies at both the central and local levels.'
Despite government efforts to decentralise, many projects still need approval at both levels, further complicating implementation.
VCCI's research found that investors frequently struggle to navigate overlapping and frequently amended laws.
A single project may fall under 12 laws and 20 decrees or circulars, in addition to local rules.
'There is no single legal document that clearly outlines the steps and procedures for implementing a project,' Hong said.
'Investors must interpret everything themselves, which is particularly challenging for newcomers or foreign businesses,' she added.
Some procedures, such as land auctions or selection of investors through bidding, lack clear deadlines and depend entirely on local decisions, according to the research.
Others, such as environmental impact assessments, have defined time frames, but delays are common and often ripple through other dependent procedures.
Hong added: 'Our surveys show that for land-use projects, the process typically takes between 18 to 24 months if things go smoothly. On average, it takes two to three years just to complete administrative requirements before project implementation can begin.'
The burden of complex procedures is reflected in the 2023 Provincial Competitiveness Index, which surveyed 10,000 businesses.
The report found that 73% of enterprises had postponed or cancelled business plans due to difficulties with land-related procedures.
The findings also revealed that 64% of firms experienced delays beyond legal timelines, and 44% pointed to excessive delays in land valuation. — Viet Nam News/ANN

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Many opportunities for Asean amidst US' tariff tantrum, says Asean-BAC head
Many opportunities for Asean amidst US' tariff tantrum, says Asean-BAC head

The Star

timea day ago

  • The Star

Many opportunities for Asean amidst US' tariff tantrum, says Asean-BAC head

HANOI (Bernama-VNA): South-East Asian countries can capitalise on the rollout of tariffs and other US policies by re-evaluating overlooked relations with other trade partners and opening their doors to international students. The statement is according to Tan Sri Nazir Razak, Chairman of the Asean Business Advisory Council (Asean-BAC) - the Asean's business lobby. Vietnam News Agency (VNA) reported, Nazir, who leads the council during Malaysia's Asean Chairmanship in 2025, emphasised the importance of strengthening intra-regional economic ties by boosting trade and investment within the Association of South-East Asian Nations (Asean). He called for forging closer partnerships with other countries in the world such as China, India, and Japan. The Asean-BAC head also proposed Asean and Japan collaborate in fields such as artificial intelligence and energy, as both have the potential to work together and build capacity in this area. - Bernama-VNA

Vietnam welcomes over 9.2 million foreign tourists in first five months
Vietnam welcomes over 9.2 million foreign tourists in first five months

The Sun

time2 days ago

  • The Sun

Vietnam welcomes over 9.2 million foreign tourists in first five months

HANOI: Vietnam welcomed more than 9.2 million international tourists in the first five months of 2025, up 21.3 per cent from the same period last year, with Malaysia among its top 10 source markets. In May alone, the country recorded 1.53 million international arrivals, a 10.5 per cent year-on-year increase, Vietnam News Agency (VNA) reported, citing the Vietnam National Authority of Tourism (VNAT). Tour operators described this as a strong showing despite the end of the usual peak travel season, setting a 10-year record for the month and underscoring Vietnam's appeal as a year-round destination. Tourism revenue from January to May was estimated at VN$38.4 trillion (US$1.47 billion), up 24.7 per cent from the same period in 2024. Air travel accounted for 85.2 per cent of arrivals, followed by land crossings (12.9 per cent) and sea routes (1.9 per cent). Despite its long coastline and port infrastructure, the VNAT noted that maritime tourism remains largely untapped. China remained the top source market with 2.36 million visitors, followed by South Korea with over 1.9 million. Other key markets included Taiwan (533,000), the United States (375,000), Japan (342,000), Cambodia (325,000), India (272,000), Australia (241,000), Malaysia (221,000) and Russia (210,000). The tourism authority added that it would continue promotional efforts to meet its 2025 target of 22 to 23 million international visitors.

Vietnam Sees 9.2M Tourists in 5 Months, Up 21.3% YoY
Vietnam Sees 9.2M Tourists in 5 Months, Up 21.3% YoY

The Sun

time2 days ago

  • The Sun

Vietnam Sees 9.2M Tourists in 5 Months, Up 21.3% YoY

HANOI: Vietnam welcomed more than 9.2 million international tourists in the first five months of 2025, up 21.3 per cent from the same period last year, with Malaysia among its top 10 source markets. In May alone, the country recorded 1.53 million international arrivals, a 10.5 per cent year-on-year increase, Vietnam News Agency (VNA) reported, citing the Vietnam National Authority of Tourism (VNAT). Tour operators described this as a strong showing despite the end of the usual peak travel season, setting a 10-year record for the month and underscoring Vietnam's appeal as a year-round destination. Tourism revenue from January to May was estimated at VN$38.4 trillion (US$1.47 billion), up 24.7 per cent from the same period in 2024. Air travel accounted for 85.2 per cent of arrivals, followed by land crossings (12.9 per cent) and sea routes (1.9 per cent). Despite its long coastline and port infrastructure, the VNAT noted that maritime tourism remains largely untapped. China remained the top source market with 2.36 million visitors, followed by South Korea with over 1.9 million. Other key markets included Taiwan (533,000), the United States (375,000), Japan (342,000), Cambodia (325,000), India (272,000), Australia (241,000), Malaysia (221,000) and Russia (210,000). The tourism authority added that it would continue promotional efforts to meet its 2025 target of 22 to 23 million international visitors.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store