Hanoi (VNS/VNA) – The stability ofthe regulatory system is key to luring foreign investment into Vietnam and therights and benefits of foreign investors must be assured even when policies arechanged, officials and executives have said.

They urged that government agencies must acknowledge thiswhen making amendments to the laws of Enterprises and Investment.

Though manycountries and territories have entered Vietnam, the presence of high-techenterprises was limited, Vice Chairman of the Vietnam Association of ForeignInvestment Enterprises (VAFIE) Nguyen Van Toan said.

European and American investors were concerned by the lack ofrigid policies on corporate transparency and intellectual protection, he told aseminar on October 15.

In addition, regulations had been changed constantly, makingit harder for them to invest in Vietnamese assets, he said.

According to NguyenNgoc My, Chairman of Vabis Group, Vietnam’s regulations confuse investors asthey change constantly and have a negative impact on business plans wheneverthey change.

VAFIE Chairman NguyenMai said there must be a way to protect the rights and benefits of foreigninvestors.

“The rights and benefits of foreign investors are protectedunder Article 13 of the Law on Investment, however, only in the case of changedinvestment policies are investors asking for more,” he said.

“They want to beassured of their ownership over local assets and of the security of assets andprofits when being transferred to overseas markets. In addition, they wanttheir projects preserved if policies are changed.”

There should be aprogramme to make sure demands of foreign investors are met, Mại added.

Banking specialistand economist Can Van Luc said foreign investors were often worried about howbusiness licences are granted in Vietnam and whether their cash could betransferred to a third-party territory.

Those issues were urgent as the Government wanted to makeVietnam a financial hub and HCM City a financial centre of the region, he said.

The policy system was not transparent and consistent and itwould become an issue if the Government wanted to make the business environmentmore open, he said.

According to Dau AnhTuan, director of the legal department at the Vietnam Chamber of Commerce andIndustry (VCCI), the Prime Minister has recently asked VCCI to review theregulatory system.

He said the regulations often overlapped and there wereproblems with ongoing projects in local areas, especially real estate, asinvestors had to meet different requirements and qualifications set by bothlocal and central authorities.

The issue will lead to consequences as investors andbusinesses have to fulfil similar administrative works, costing them time,money and efforts and interrupting business operation.

|The Government,ministries and agencies need to revise all laws and regulationscomprehensively. An independent organisation must be set up to help the Governmentreview the revised policies.

VAFIE Chairman Maiproposed the Government and ministries consider an approach which does notchange the right and benefit of investors based on revised laws andregulations. Companies that have benefited from former policies should not beviewed as “outlaws”.

The seminar wasorganised by Nha Dau Tu (The Investors) magazine, drawing the presence ofspecialists, government officials and business executives to discuss theamendment to the laws of Enterprises and Investment./.