Foreign investors praise HCM City Party Chief’s hotline

In a meeting between the leaders of HCM City and foreign investors on March 16, investors showed their great interest in the hotlines of Thang and the municipal departments.

Foreign investors said the hotlines can help the business processes take place more smoothly.

Most of the foreign trade associations in HCM City said the hotlines will enhance the value of the collaborative process. The transparency of the investment environment will improve as businesses can have direct exchange with officials through the hotlines.

This is the optimal tool for HCM City officials to understand investors more and investors can understand more clearly about the direction and regulations.

Foreign business associations said the biggest matter at present is the regulations on the import of used equipment. A circular is encouraging the import of equipment from China, which is the violation of WTO commitments.

Regarding the ban of import of old equipment of 10-20 years old, investors asked the Ministry of Industry and Trade to have specific solutions, not simply setting the ban because businesses still need to import used equipment.

Foreign investors were also concerned about the lack of transparency of the business environment in Vietnam, which restricts them from raising capital. They also need highly skilled labor.

According to the Department of Planning and Investment of Ho Chi Minh City, by the end of 2015, the city had 5,854 valid foreign-invested, with a total investment of US$40.02 billion.

In 2015, the city attracted US$4.5 billion of foreign capital, up 38.28% over the same period in 2014, representing 19.8% of the country’s total (US$22.76 billion).

Singapore is the largest investor in the city, accounting for 22.36% (US$8.7 billion), followed by Malaysia with 14.98% (US$5.8 billion) and the British Virgin Islands 11.03% (US$4.2 billion).

The real estate sector attracted 35.01% of the capital (US$14.01 billion), then the processing, manufacturing industry with 32.13% (US$12.51 billion) and education and training with 9.32% (US$3.72 billion).