Conference on legal support for investors held in HCMC

An overview of the conference

On the morning of July 7, the HCMC Center for Trade and Investment Promotion (ITPC) and the Vietnam International Arbitration Center (VIAC) held a conference to strengthen investment attraction and propose effective legal solutions for investors in HCMC. Vice Chairman Bui Xuan Cuong of the People's Committee of HCMC was present at the conference.

The era of cheap costs is over

During her opening statement, Ms. Cao Thi Phi Van, Deputy Director of ITPC, emphasized that if tax incentives were no longer a competitive advantage, the investment environment would become the most crucial factor in attracting investments. HCMC has recently strived to improve transportation, logistics projects, and infrastructure, restore the supply chain, and train high-quality workforce. The city is currently facing the challenge of attracting investments and creating optimal conditions for investors, reaffirming its commitment to providing the best possible conditions for existing investors.

AmCham Vietnam representative engages in dialogue at the conference.

Presenting at the conference on the investment attraction situation in HCMC, Mr. Dao Minh Chanh, Deputy Director of the Department of Planning and Investment, highlighted Vietnam's recent rise as a sought-after destination for global investors and a shining example of investment allure in the region. Among the various options, HCMC stands out as the most preferred location. There are currently 11,868 valid foreign-invested projects in the city, including both new grants and capital adjustments, with a total investment capital exceeding $81.29 billion, leading the country in the number of valid projects.

Obstacles to investment attraction in HCMC include issues like traffic congestion, flooding, tidal surges, and pollution, which create hesitation among investors. The participation of businesses in the supply chain remains limited, particularly in the service, equipment, and indirect material sectors. The domestic production value has yet to reach its full potential, and the implementation of research and development (R&D) activities has not been deployed, with a lack of established R&D teams within factories.

ICham representative speaks at the conference.

Analyzing the current challenges, Mr. Dau Anh Tuan, Deputy Secretary General cum Head of the Legal Department at the Vietnam Chamber of Commerce and Industry (VCCI), said that extensive surveys and research indicate that Vietnam, including HCMC, has traditionally attracted investments due to its significant advantage of low costs, including tax incentives. However, these dynamics are gradually evolving. The previous advantages will diminish over time, presenting substantial challenges in the investment landscape.

Effective legal solutions for investors

In his presentation at the conference, Dr. Vu Tien Loc, Chairman of VIAC, said that in the global trend of supply chain shifting, Vietnam stands as one of the top destinations. How to capitalize on this opportunity, especially in a major city like HCMC, requires strategic vision and breakthrough policies for development.

According to Mr. Vu Tien Loc, at present, HCMC needs to focus on key areas, including institutions, human resources, and legal matters, which are becoming the top priority. Recently, the real estate sector has reflected 70 percent of the obstacles related to legal issues and procedures. On the other hand, when implementing Resolution 98, conflicts or discrepancies may arise between specific policy mechanisms and general mechanisms, requiring appropriate solutions.

Lawyer Chau Viet Bac, Deputy Secretary General of VIAC, suggests the need to establish a Legal Investment Support Forum. Specifically, the forum will help address the obstacles faced by investors regarding the legal environment. These are practical issues that arise without specific regulations or with varying interpretations between different laws.

Dr. Vu Tien Loc, Chairman of VIAC, speaks at the conference.

This forum will also support investors in identifying legal risks and minimizing disputes and losses. Currently, the VIAC's investment dispute resolution rate accounted for 40 percent of the total disputes in 2022.

The Legal Investment Support Forum is a collaborative effort led by ITPC, VIAC, and relevant agencies, with the participation of foreign business associations, law firms, and business support organizations. The forum aims to engage in dialogue and address concerns raised by the investor community regarding the application of legal regulations. It also provides practical insights, handling experiences, risk identification, and recommendations for investors.

During the conference, a dialogue session with investors was held to seek their feedback on the annual Legal Investment Support Forum model for businesses.

Mr. James Ollen, Executive Director of the American Chamber of Commerce (AmCham) in Vietnam, Mr. Michele D'Ercole, Chairman of the Italian Chamber of Commerce (ICham) in Vietnam, along with representatives from the European Chamber of Commerce in Vietnam, the Singapore Business Association in Vietnam, and the Korea International Trade Association, actively participated in the dialogue session.

Mr. Bui Xuan Cuong, Vice Chairman of the People's Committee of HCMC, said that the city is willing to listen attentively to issues and challenges faced by businesses to provide timely resolutions.

Speaking at the forum, Mr. Bui Xuan Cuong, Vice Chairman of the People's Committee of HCMC, said that the city is willing to listen attentively to issues and challenges faced by businesses to provide timely resolutions. Resolution 98, recently approved by the National Assembly, focuses on prioritizing favorable conditions for investors who are currently investing in HCMC. The city will establish channels for sharing information, providing transparency about projects to create a favorable environment for businesses to participate in investment.