Speakers at an investment promotion conference in HCM City on Friday organised by the HCM City Investment and Trade Promotion Centre and Việt Nam International Arbitration Centre. Photo courtesy of the ITPC

HCM CITY — HCM City is committed to creating a “business-friendly environment” to attract foreign investment by enhancing its legal and regulatory landscapes, a senior official has said. 

Speaking at an investment promotion conference in HCM City on Friday, Bùi Xuân Cường, vice chairman of its People’s Committee, said the city has taken drastic measures to simplify bureaucracy and eliminate red tape. 

A streamlined online registration process has been introduced, allowing foreign investors to access information, submit applications and track progress in real-time, he said, adding that the city has also implemented attractive tax incentives and benefits for them.

“With its strategic plans for sustained economic growth and development, HCM City is poised to thrive as a premier destination for foreign investment in the years ahead.”

Cao Thị Phi Vân, deputy director of the HCM City Investment and Trade Promotion Centre (ITPC), said HCM City remains an attractive destination for foreign investors. 

It saw a 30.7 per cent year-on-year increase in FDI in the first half of 2023 to US$2.8 billion, according to the latest report of the HCM City Statistics Office.

There were 514 new foreign projects, a 69.1 per cent surge, according to the office. 

“This influx of foreign investment has significantly contributed to the city’s economic growth and solidified its reputation as a global business hub.”

Đào Minh Chánh, deputy director of the city Department of Planning and Investment, said the city has devised a comprehensive plan until 2030 to attract foreign investment prioritising high-quality projects that use advanced technologies to produce high value-added products. 

The plan also seeks to transform HCM City into a smart city and modern services and industrial hub, and a crucial driver of national growth, he said.

It particularly focuses on FDI in sectors in which the city has potential, especially those that comply with green and sustainable requirements to combat climate change, he said.

Đậu Anh Tuấn, deputy general secretary of the Việt Nam Chamber of Commerce and Industry (VCCI) cum director general of the VCCI’s Legal Department, pointed out that foreign investors often face challenges in navigating the country’s legal and regulatory landscapes, including HCM City’s. 

The complex regulatory environment, coupled with constantly changing laws, could prove challenging, he noted. 

Obtaining all the licenses and permits needed is time-consuming and unpredictable, and safeguarding intellectual property rights could be problematic considering their limit ed enforcement, he admitted.

Châu Việt Bắc, deputy secretary general of Việt Nam International Arbitration Centre (VIAC), called for creating a new investment legal support forum for HCM City. 

It would provide reliable legal information, reduce entry barriers and ensure a smooth investment experience, he said.

Key stakeholders, including government agencies, legal professionals, business groups, and foreign chambers of commerce, would collaborate within this framework by offering tailored services such as legal guidance, one-on-one consultations, assistance with legal documents, and dispute resolution services, he said. 

The conference was organised by the ITPC and VIAC.