Vietnam says administrative reform will have no impact on project approval

HANOI – The Vietnamese government said on Dec. 20 that its administration’s plans for a significant overhaul would not affect project approvals, amid concerns among investors that it could lead to delays in the coming months.

The Southeast Asian country, a regional industrial hub, is planning its boldest bureaucratic reform in decades, which under its current proposals would involve cuts to several public agencies, including the elimination of five ministries, four agencies government agencies and five state television channels.

“The restructuring process will not affect the implementation of investment procedures and processes in Vietnam as the state management function remains unchanged,” said Foreign Ministry spokesperson Pham Thu Hang , in a statement to Reuters.

Investors, diplomats and officials have welcomed the reforms, which aim to cut red tape and bureaucracy, but many anticipate administrative delays in the coming months.

The communist-ruled country relies heavily on foreign investment in manufacturing to fuel its booming export-oriented economy.

But in recent years, investor discontent has grown over delays in project approvals and regulatory reforms, compounded by a broad anti-corruption campaign.

The administrative overhaul, which could be amended before a vote in Parliament in February, aims to address these concerns.

“Along with the restructuring process, Vietnam continues to have strict regulations aimed at simplifying investment processes to make it easier for foreign companies to operate in Vietnam in the long term,” Ms Hang said. REUTERS

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