Carpets and nails in the investment environment

The National Assembly's session last weekend was "heated up" by the impressive statement of delegate Le Nhu Tien (Quang Tri), when mentioning the need to create a "clean environment for Vietnam to take off".

Not mentioning other "environments", such as culture - society, living environment that this delegate mentioned, just mentioning the investment environment - the first factor mentioned by delegate Le Nhu Tien - also has many problems.

In the first quarter of 2016 alone, more than 4 billion USD of FDI capital poured into Vietnam. Photo: Duc Thanh

"We earnestly invite domestic and foreign investors for socio-economic development, but good and open guidelines and policies are hindered and disabled in implementation," delegate Le Nhu Tien said and demonstrated that many places make it difficult for investors such as cutting off electricity, cutting off water, erecting gate barriers, some people performing official duties extort, harass, and blatantly demand bribes, lubrication money, to do business. miserable, frustrated businessmen.

Even mentioning the fact that in a recent socio-economic discussion session, a delegate had to exclaim that "on good land, birds perch on, but the birds that haven't landed yet eat all the birds", delegate Le Nhu Tien exclaimed: "So we invite investors, but on top they spread carpets, on the bottom they spread nails. Even though investors walk on carpets, they still feel pain because of the rows of nails below."

It is true that many carpets and red carpets have been spread by Vietnam in general and localities in particular to attract investment, especially FDI. Thanks to that, in the first quarter of 2016 alone, more than 4 billion USD of FDI capital poured into Vietnam. But there are many carpets, and many nails.

Just a few days ago, the People's Committee of Hai Duong province had to open a press conference, with the hope that the media agencies could inform, propagate, and contribute to creating consensus among the people and public opinion regarding the implementation of the Cam Dien - Luong Dien (Hai Duong) Industrial Park Project.

This industrial park was allowed to be established by the Prime Minister in August 2008, but until now, it has not been able to be implemented. The reason is that the previous investor - Phuc Hung Company (Taiwan) - right from the years 2009 - 2010, when starting to implement the Project's infrastructure, was hindered by some households. Difficulties in compensation, site clearance and land allocation have caused the project to fall behind schedule. Plus later, due to the impact of the global financial crisis, the investor encountered difficulties, so the project was delayed.

I thought that the Cam Dien - Luong Dien Industrial Park Project would soon be revived after the Vietnam Singapore Industrial Park and Urban Development Joint Stock Company (VSIP JSC) received the transfer of the project from Phuc Hung early last year. But in reality, last May, when VSIP Hai Duong started construction, a number of people continued to come out to obstruct the construction, causing the construction to stall until now.

It is also important to reiterate that VSIP is a reputable investor, with financial potential and experience in developing infrastructure and attracting investment in industrial parks, but nearly a year has passed, this investor has not been able to revive the industrial park that has been in ruins for many years. The reason is only because people hindered them, when in fact, there have been two FDI projects granted investment certificates in this industrial park, with a total registered capital of 152 million USD. In addition, some projects are also completing documents to issue investment registration certificates.

"VSIP said that they strive to fill the industrial park area by the end of 2016 if construction is protected as planned," said Mr. Vuong Duc Sang, Vice Chairman of Hai Duong Provincial People's Committee, saying that the construction and early completion of Cam Dien - Luong Dien Industrial Park infrastructure at this time is very necessary and urgent to serve the local socio-economic development, after a period of time when land resources have not been used effectively. "Early implementation is also to create trust among local officials and people, create consensus to support the implementation of the Project, and is a solution to retain foreign investors and create conditions to attract further investment," Mr. Sang said.

Actually, 2 years ago, Hai Duong also encountered a similar situation, with the infrastructure construction of Lai Vu Industrial Park being obstructed and destroyed by many people. It all also stems from problems in the site clearance compensation agreement.

It is difficult to place all responsibility on the people in this story, because the people hand over the land to the State, they have the right to demand legal and reasonable benefits, the problem is how the local government solves problems and resolves people's petitions. However, the people's disruptive actions are no different from sharp "nails" that worsen the "red carpet" that Vietnam is trying to spread to attract investment. As a result, the project is delayed in implementation, causing great socio-economic damage...

Not only a story in Hai Duong, the recent incident at Tan Duc Industrial Park (Long An) is even more sad and shameful. Because it was not the people, but the industrial park infrastructure investor who stood up to barricade and cut off the water... Tango Candy Company (Japan).

When the image of 77-year-old Japanese director Tango Hirosuke alone standing up to protect the Company, protecting workers, determined not to pay the lack of transparency and unreasonable fees spread in the media, public opinion called it the "shame" of Vietnamese people. It was even more embarrassing when after the incident, the same director sent a letter apologizing to the Vietnamese people for wasting everyone's time because of the problems related to his company. He also apologized to Japanese businesses and expressed his hope that "my personal and my company's problems will not affect businesses' good thoughts about Vietnam and Vietnamese people."

That is truly a valuable lesson about how to treat people. Europe is also a lesson from which Vietnam knows how to remove the "nails" under the red carpet. Lessons to further improve the investment and business environment in Vietnam.