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HomeSocio-Economic information

Conversation with FDI Enterprises: how to minimize business difficulties

Posted Date: 20/09/2016
At the direct conversation on September 6th, medium and small FDI Enterprises in Dong Nai province expressed their concern and recounted some problem that they had encountered about: Investment procedure, tax, customs, land, environment… The Enterprises also recommend that the dossier processing time and investigations shall be reduced.​
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Mr. Akira Motomiya – General Director of Fujitsu Computer Production Co. Ltd, Chairman of Japanese Enterprises Association in Dong Nai, recounting the problem at the conversation. 

 

Over 40 FDI Enterprises in Dong Nai joined the direct conversation with the Provincial Heads and Departments to solve the difficulties and have better business environment. Most of the difficulties which were under the province’s authorization were solved; and the ones which were under the Central’s authorization were proposed to the Ministries and Departments.

 
ALL PROCEDURES SHALL BE PUBLISHED ONLINE
 
Representatives of the medium and small FDI Enterprises recommended that the province shall publish all the procedures of investment, enterprise establishment/expansion, tax, customs, environment, land and labor registration licensing. According to the enterprises, the processing time for those procedures had been reduced, yet still long, complicated and costly. If the province publish all the procedures and dossiers for all of the issues above, it shall be more transparent and prevent the situation of making difficulties on the enterprises.
 

Mr. Ariga Masahiro – General Director of Forval Vietnam Co. Ltd (Nhon Trach 3 IZ, Nhon Trach district), said: “We are currently cooperating with Tin Nghia Corporation in constructing factories for Japanese small enterprises, so we regularly support them by asking for licenses for their investment,  business establishment and construction. So we recommend that the province shall publish all the relating procedures online and inform the FDI Enterprise to update and prepare thereafter save time and costs”.
 
 
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Mr. Ariga Masahiro – General Director of Forval Vietnam Co. Ltd (Nhon Trach 3 IZ, Nhon Trac district) giving speech at the conversation.
 
According to the FDI Enterprises, before, they were only required to go to Dong Nai Industrial Zone Management Department to have their dossiers licensed, but now, they have to go to one more place – Department of Planning and Investment (DPI), which take them more time and costs. Commenting on that, Director of DPI – Mr. Cao Tien Dong said: “Some of the procedures of investment, enterprises establishment/expansion licensing have already been published on the website of Dong Nai DPI, FDI Enterprise can either register online or directly at the Department. Those enterprises that prefer not to go to both the Departments can simply go to Dong Nai Industrial Zone Management Department only; since the two Departments have recently been ordered by the province to work cooperatively to help saving enterprises’ time and costs”. In additional, DPI also has a specialized unit to instruct the enterprises to solve the procedures; therefore, in case of any difficulties, enterprises can directly contact the Department for support.
 
Some FDI Enterprises also recommended that the province shall allow all the procedures of enterprise establishment, construction, environment and land to be solved at the same time to reduce time. Deputy Chairman off Provincial People’s Committee – Mr. Tran Van Vinh stated: “In the near future, all the related Departments shall complete the procedures of enterprise establishment, construction, environment, labor, insurance… and publish them online and provide the enterprises with the viewable links for better researches. Enterprises which encounter difficulties made by the officials shall directly contact the Provincial Heads by phone or email; the province shall then handle the cases immediately”.
 
ARE THE MONITORING CAMERAS NECESSARY?
 
Representatives of some associations and enterprise complained about the custom department’s request of having security cameras installed at the gate of each export-processing enterprise to monitor their product in-and-out to prevent tax evasion, the recording shall then be transferred to the customs department over the internet. The enterprises worry that the data with their privacy might be stolen during the transferring. And the required period for the recording is 6 months, which is considerably costly.
 
It is not secured to transfer the export-processing enterprises’ data on the internet since the internet security is currently being attacked. Leaked private information shall negatively affect the enterprises’ customers. Therefore, we recommend the customs department to come and collect the required information directly at the enterprises and shorten the required camera recording period to 1 month, as the 6 month period is considerably costly for us.” – Said Mr. Akira Motomiya.
 
Mr. Taketani Yukihiko – General Director of Tayca Vietnam Co. Ltd (Long Duc IZ, Long Thanh district) – said: “Our Company have over 100 years of experience in chemical production in Japan as well as other countries and never cause any environmental problem, so we suggest the province reconsider the environment procedures. We accept the camera installation for the emission monitoring but we suggest removing the other unnecessary monitoring requests that cause difficulties and are costly”. According to Mr. Nguyen Ngoc Thuong – Deputy Director of Department of Natural Resources and Environment, those emission and sewage monitoring is the request of Ministry of Natural Resources and Environment. In the near future, the Department shall propose the Ministry about that issue for review and removing the unnecessary emission and sewage monitoring to facilitate the enterprises.
 
Mr. Tran Van Vinh ordered: “Dong Nai Custom Department shall reconsider the monitoring camera installation in the export-processing enterprises, have direct discussion with the enterprises before having any new decision to avoid causing difficulties. Instead of requesting one 6 month recording, the Department shall have officials going directly to each enterprise and collect the recording every month in 6 months and shall not online transferring to avoid leaking of private information.” In fact, the monitoring camera installation was requested by Dong Nai province since the province does not have an independent export-processing zones, the camera installation is a temporary solution to avoid tax evasion.
 
About the enterprises monitoring situation, many provinces have decided to implement unscheduled investigations only when the enterprises have signs of violation; and the investigation shall be reported immediately to the province after that. Scheduled investigations by cooperated departments shall be review by the province before implementing. Well-operated enterprises shall contact Dong Nai Department of Industrial Zone Management for solution in case of being investigated continuously.
 
Deputy Chairman Tran Van Vinh guaranteed that by the end of 2016, Dong Nai shall publish all the procedures and dossiers required for investment, enterprises establishment/expansion, construction, tax, customs, land, environment, labor… licensing. Thereafter, the enterprises can download and complete the files in advance, enable transparency, time and cost saving which facilitate the enterprise operation and attract FDI.
 
Huong Giang