27 Jul, 2018

Ho Chi Minh City committed to improve investment environment

Over the past time, Ho Chi Minh City has been voted by the business community as one of the best business environments in Vietnam. The city has achieved great success in attracting investment, becoming the leader in attracting foreign direct investment (FDI). That success stems from its efforts in accelerating reforms of administrative procedure to create open mechanisms, reflecting feedbacks and aspirations of enterprises and investors in its policies that are innovative to attract more investment resources.

General situation

In 2017, Ho Chi Minh City achieved very positive results in attracting FDI, exceeding the target set with the total investment capital of US$ 6.6 billion, up to 90 percent compared to that of 2016. In the first 4 months of 2018, FDI attraction in Ho Chi Minh city has reached US$ 1.55 billion (new capital, capital increase and share purchase). This is a very encouraging result for the economic development of the city, especially in the context of attracting FDI in the first four months of the year are signs of a sharp increase. According to a representative of Ho Chi Minh City People’s Committee, the encouraging achievements in attracting FDI in recent years reflected the efforts in the following activities :

  1. The Department of Planning and Investment has taken many practical measures to improve the business and investment environment and create favorable conditions for enterprises.
  2. Enhancing administrative reform.
  3. Abolishing unnecessary procedures.
  4. The Department intensifies the use of IT in dealing with administrative procedures through the implementation of investment procedures online.

International associations evaluation

Ho Chi Minh City has long been considered an active city in setting up outstanding and innovative policies to attract more investment. In recent years, many international cooperation activities of the city have become vibrant and effective. According to Mr. John Rockhold, Managing Director of the American Business Association (AmCham), many US companies are now interested in cooperative smart city development projects in Ho Chi Minh City. Especially, there was an establishment of the American-Vietnam Smart City Industry Association with 30 enterprises. Towards the European Business Association (EuroCham), European investors also impress about investment environment in Ho Chi Minh city. However, European companies hoped the city will have more open and transparent policies towards sustainable development in the spirit of Resolution No. 54/2017 / QH14.

Future promising

In order to improve the investment and business environment, meeting the requirements of investors, the Chairman of Ho Chi Minh City People’s Committee – Mr. Nguyen Thanh Phong said that in the coming time, the city will accelerate the improvement of the business environment through reform of administrative procedures in the fields of taxation, customs and land:

  1. Tax: The tax strives the rate of electronic tax declaration companies pay 98%, the proportion of enterprises to pay electronic tax reaches 90%.
  2. Customs: 50% reduction of time for receiving and examining customs dossiers, 50% reduction of time for receipt and inspection of actual goods.

Land: Shorten time to process procedures related to registration of ownership of land and assets attached to land from 57 days to 14 days for organizations and enterprises. In addition, the city will set up a multi-sectoral working group on land to support businesses.