Ministry launches national information database on foreign investment
Ministry launches national information database on foreign investment
While the Ministry of Planning and Investment (MPI) believes that the national information system will help better manage foreign direct investment (FDI) and attract foreign investors, experts doubt the plan’s feasibility.
From January 1, 2015, the creation of a database on FDI will begin in 14 cities and provinces in the country.
One of the most important functions of the national information system is managing foreign invested projects in Vietnam.
The system will include lists of projects calling for foreign investments, managed by MPI, investment promotion agencies, hi-tech parks, industrial zones, export processing zones and economic zones.
The updates about implementation and the life of over 20,000 licensed FDI projects will also be available on the system.
Users can easily search for the public information through the foreign investment information portal where data is shown in standard modes of webservice or xml.
The system will also help foreign investors apply for investment certificates online and make reports online, saving time and money, and helping to improve the investment environment.
Nguyen Mai, chair of the Foreign Invested Enterprises’ Association, however, doubts the system will work.
“I am afraid that the system may not bring the desired effects due to the incompatibility of different systems and the problems in updating materials,” Mai said.
He said the operation of the system will depend on information quality and the system’s regulators.
He mentioned the low quality of the reports provided by enterprises.
“What will the management agencies do, if they themselves even do not know who the investors of projects are and do not know how the enterprises operate?” Mai said.
Several years ago, MPI released figures about 2008 FDI capital twice, with an error of up to $7 billion, one analyst said.
The analyst also warned that this would be a heavy task to update information about the 20,000 licensed foreign invested projects in Vietnam.
He said that the Foreign Investment Agency (FIA) has received reports on FDI from 63 provinces and cities, but the quality of the reports is “problematic”.
“With the existing problem, it would be very difficult to have assessment about the FDI situation and set up reasonable policies,” he said.
A survey conducted in 2012 showed a “3-no’s situation” in the FDI post-licensing management: no information about investors, no information about investment addresses, and no information about enterprises’ operations.
“It will take time to check the 20,000 projects, even just to find out which are still operational and which have been dissolved,” he said.
