In March alone, 75 projects were licensed with a combined investment capital of US$2,627 million, bringing the total number of new projects in the first quarter of this year to 147 with a total registered capital of US$5,156 million.

The registered capital has increased by 43 percent over the same period last year because many big projects were licensed. They include a project to build five-star hotels and resorts in southern Ba Ria-Vung Tau province with an investment capital of US$1.299 billion from the US Good Choice group. A US$610.3-million project to build offices, produce software products and supply human resources by three Japanese companies, and a project to build five-star hotels, villas and houses capitalised at US$298.4 million in central Thua Thien-Hue province by the Singaporean Lap An Investment and Development Company.

Phan Huu Thang, head of the Overseas Investment Department said that foreign direct investment (FDI) in the first quarter of this year was high and FDI businesses have been actively implementing projects since the start of this year. Many big projects have been granted licenses, especially projects to build offices and flats for sale and rent as well as luxury hotels and resorts. However, some certain obstacles need removing. First, Vietnam must check the implementation of its commitment to an opening the door for foreigners in the fields of goods and services in accordance with WTO commitments.

It is essential to publicise the relevant ministries and sectors’ legal requirements on invsetment conditions or businesses’ operations in order to make them conform to the State’s commitments. Meanwhile, provincial People’s Committees should issue transparent and clear information on foreign investment management in terms of timetables and lists of investment items.

Secondly, continuing to implement a one-stop shop mechanism at investment  permit granting and investment management agencies, enhancing relevant agencies’ capability of controlling foreign investment and mechanisms for supervising investment activities. They also must continue to deal with procedures on land, tax, export-import and customs in order to facilitate foreign investment in Vietnam.

In addition, it is imperative to accelerate the disbursement and the implementation of major projects which were granted investment permits in 2006 and 2007 by simplifying administrative procedures and resolving land acquistion-related issues.

According to foreign experts, apart from the above mentioned work, Vietnam should make a greater effort to ensure the clarity and transparency of investment policies and procedures by publicising the process of granting invsetment permits on the Internet and adjusting all sectors in line with Vietnam’s international commitments in the integration process.