Red tape puts wraps on investments

Bureaucratic red tape is still a hindrance to foreign-invested businesses in Vietnam, a Thursday conference was told.

Representatives of foreign firms told a regular forum hosted by the Vietnam Chamber of Commerce and Industry (VCCI) that Vietnam is losing its competitiveness thanks to complex and time consuming administrative procedures.

Japanese and South Korean firms said they had many difficulties in completing procedures related to custom clearances for their products. It can take long periods of time before products are cleared by custom offices, said Cho Hyung Joon from the Korean Chamber of Commerce and Industry (KorCham).

Another representative from KorCham, Hong Sun, said Vietnamese regulations change constantly over a short timeframe, which hinders planning for investments.

EuroCham Chairman Alan Cany warned Vietnam is facing a huge risk of losing competitiveness due to the outdated regulations which were prevalent during the centrally-planned economy.

vietnamnews

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