Vietnam's administrative restructuring will not impact foreign investors, says Foreign Ministry
Vietnam's ongoing efforts to streamline and restructure its administrative apparatus will not affect foreign investment procedures, as the core functions of state management remain unchanged, the Ministry of Foreign Affairs affirmed on December 20.
Speaking to Reuters, Foreign Ministry spokesperson Pham Thu Hang said, "The restructuring and rearrangement process will not impact the implementation of investment procedures in Vietnam because the state management functions remain consistent."
The spokesperson also emphasised that alongside this restructuring, the country continues to simplify investment processes, aiming to create a favourable environment for long-term operations of foreign enterprises.
Vietnam’s plans, initiated earlier this month, to streamline its ministries and governmental agencies have garnered significant attention from international media.
According to Reuters, diplomats, officials, and investors have welcomed the reforms, which are designed to cut administrative red tape and improve efficiency. However, concerns among a small number of foreign investors, as with any reforms globally, are inevitable.
At the Party’s 2024 Annual Conference on December 16, General Secretary Tô Lam clarified that the objective of the administrative reforms is to enhance efficiency while reducing bureaucracy.
Under the restructuring roadmap, the government will retain eight ministries and agencies but streamline their internal structures. For the remaining 14, the government will carry out reorganisation and mergers to reduce the number of administrative bodies.
One notable merger involves the Ministry of Planning and Investment with the Ministry of Finance, with the new entity tentatively named the Ministry of Finance and Development Investment or the Ministry of Economic Development.
Vietnam has long been a standout destination for foreign direct investment (FDI) in Southeast Asia and Asia, a legacy of the country’s 1986 economic reforms and the introduction of the Foreign Investment Law in 1987.
In the first 11 months of 2024, total registered FDI in Vietnam reached US$31.4 billion, while disbursed FDI was estimated at US$21.68 billion, up 7.1% year on year.
