Reforming the appraisal process and reducing procedures for FDI enterprises is necessary to improve management efficiency and attract investment. Simplifying administrative procedures, building a digital one-stop system, and eliminating unnecessary regulations will help enterprises operate more effectively.
DNP Viet Nam Law Firm will provide FDI enterprises with a better understanding of this issue.
1. Current status of investment appraisal regulations:
The legal framework for investment appraisal in Vietnam is already in place. It is built upon fundamental documents such as the Public Investment Law 2019 and the Investment Law 2020.
However, the implementation still faces many shortcomings. Administrative procedures remain complicated. Processing times are often long. Inter-sectoral coordination lacks consistency and effectiveness. The application of information technology is still limited.
In addition, there are overlapping appraisal processes. This leads to duplication and inefficiency. In some cases, appraisals are conducted in a formalistic manner and are not closely aligned with real project conditions.
1.1 Purpose of reforming the appraisal process:
- Completing the legal framework: Typically, the Investment Law 2020 and Decree No. 31/2021/ND-CP help clarify regulations on investment and incentives.
- Simplify administrative procedures: Many processes have shortened processing time, reduced paperwork, and applied the “one door” according to Resolution No. 68/NQ-CP.
- Application of information technology: Deploying the National Investment Information Portal and online business registration system, based on Decree No. 45/2020/ND-CP, helping businesses easily submit and look up documents.
1.2 Limitations on reforming the appraisal process:
Despite many improvements, appraisal work and administrative procedures for FDI enterprises still have some shortcomings and limitations that need to be overcome:
- Processing time is still long: Many projects, especially large ones or those involving multiple agencies, often take longer than scheduled.
- Inconsistency in the application of regulations: Localities and regulatory agencies sometimes understand and apply the law inconsistently, causing difficulties for investors.
- Complicated post-licensing procedures: After being granted an investment license, businesses still have to go through many other administrative procedures regarding business, land, construction, environment, and fire prevention.
- Lack of transparency: Some appraisal processes are not public, easily leading to negativity.
- Uneven staff capacity: The qualifications and service attitude of some officers are still limited, affecting the quality of procedure settlement.
2. Legal regulations on reforming appraisal processes and reducing procedures for FDI enterprises:
2.1. Investment Law 2020:
- Shorten investment policy approval procedures: Classify projects that must/do not require investment policy approval (Pursuant to Articles 30, 31, 32, Clause 2, Article 77 of the Investment Law 2020), helping to reduce the number of initial procedures.
- Publicize conditional/prohibited investment industries: Help investors look up and prepare appropriate documents (Article 6, 9 Investment Law 2020)
- Simplify the issuance of Investment Registration Certificates (Investment Registration Certificate): Only requires Investment Registration Certificate for special projects; maximum issuance time is 15 days (Point b, Clause 1, Article 38, Investment Law 2020)
2.2 Decree 31/2021/ND-CP:
- Specifying investment procedures: Detailed instructions on documents and processing time for each type of procedure.(Article 47 of Decree 31/2021/ND-CP).
- Streamlining investment procedures: According to Article 64 of Decree 31/2021/ND-CP, FDI enterprises can establish branches, offices, and business locations without an investment project, except in cases of land use or in areas requiring policy approval.
2.3 Enterprise Law 2020:
- Simple business establishment procedures: Documents processed within 03 working days. (Clause 5, Article 26, Law on Enterprises 2020)
- Eliminate regulations on seals: Enterprises decide on the form and content of the seal, helping to reduce implementation procedures for FDI enterprises.
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2.4 Decree 45/2020/ND-CP
Electronic administrative procedures: Facilitate FDI to submit documents, look up and receive results online, helping FDI enterprises reduce time and costs of carrying out procedures.
2.6 Decree 69/2024/ND-CP (Article 27)
Free electronic identification account: FDI enterprises do not have to pay registration/use fees for identification accounts when performing online procedures, creating opportunities to encourage digital transformation.
3. Importance of reforms to FDI enterprises:
The above legal regulations have had and are having significant positive impacts:
- Shorten time to market: Simplifying procedures for business establishment and granting Investment Registration Certificates helps FDI quickly come into operation.
- Reduce compliance costs: Reducing paperwork, procedures and promoting electronic transactions helps businesses save time, human resources, and costs.
- Increase transparency and reduce risk: Clear regulations on conditions, procedures help investors predict easily, reduce legal risks and increase confidence.
- Improve competitiveness: Administrative procedure reform improves competitiveness index, attracts FDI.
In summary, reforming the FDI appraisal process and simplifying procedures have been reflected in key legal documents such as the Investment Law 2020, the Enterprise Law 2020, and their guiding decrees. These efforts have contributed to building a more transparent and business-friendly legal framework. As a result, Vietnam has become more competitive and attractive to high-quality foreign investment.
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DNP VIET NAM LAW FIRM
Contact:
🏢 Address: 5th Floor, 52 Nguyen Thi Nhung Street, Van Phuc estate, Hiep Binh Phuoc, Thu Duc City, Ho Chi Minh City, Viet Nam.
📩 Email: info@dnp-law.com.
📞 Hotline: 0987 290 273 (Đinh Văn Tuấn Lawyer).
DNP VIET NAM LAW FIRM
Contact:
🏢 Address: 5th Floor, 52 Nguyen Thi Nhung Street, Van Phuc estate, Hiep Binh Phuoc, Thu Duc City, Ho Chi Minh City, Viet Nam.
📩 Email: info@dnp-law.com.
📞 Hotline: 0987 290 273 (Đinh Văn Tuấn Lawyer).
Website: https://www.dnp-law.com/
