HCM City (VNA) – Representativesfrom foreign-invested (FDI) enterprises in Ho Chi Minh City contributed theirideas and recommendations to spur growth in the city at a meeting withmunicipal leaders on March 23.

Secretary of the city’s PartyCommittee Nguyen Thien Nhan hailed the development of the FDI sector in thecity, which has become one of the growth drivers for the city. He reported that1.55 billion USD had been poured into HCM City in the first three months of2019, up 20.4 percent from the same period last year.

The official said the new trendof technological development and globalisation has required the city’sadministration to reform its management in order to create a favourableenvironment for business activities and innovation.  

Chairwoman of the AmericanChamber of Commerce in Vietnam (AmCham)  Amanda Rasmussen said at the meeting that HCM City hasmade progress in facilitating business activities and goods circulation.

However, she said the frequentchange of laws and regulations, including taxation policies and tax rates, iscausing difficulties to foreign investors, as it affects their business andinvestment plans.  

Vice Chairman of the European Chamberof Commerce in Vietnam (EuroCham) Tomaso Andreaatta affirmed that HCM City isan attractive destination for foreign investors, including those from Europe.However, to achieve a breakthrough in growth and foreign investment attraction,the city should accelerate infrastructure projects and take effective floodcontrol measures along with improving public transport.

Andreaatta added that asEuropean investors pay great attention to the environment, HCM City should setup a body to manage the discharge of waste water in industrial parks andpropose the Government issue policies on air quality and public transportdevelopment, thus ensuring a clean living environment for the city’s residentsand foreign investors.

Carlos Dominguez Agulleiro,deputy head of the Economic and Commercial Office of Spain in HCM City, said anincreasing number of Spanish enterprises are making the decision to invest inVietnam. If in the past they were attracted to the country by the low labourcost, now they choose the country based on high growth, stable macroeconomicfoundation and a clear policy on global cooperation.  

At the same time, he pointed to existinghurdles to the flow on investment into HCM City, including a lack oftransparency of procedures, which causes delay and uncertainty for enterprisesand investment projects. In addition, delayed transport projects have affectedthe pace of many investment projects, and the lack of suitable infrastructurehas remarkably reduced the competitiveness of Vietnam in general and HCM Cityin particular.

Chairman of the municipal People’sCommittee Nguyen Thanh Phong appreciated the recommendations of the foreign businesscommunity, and stressed that the city always considers the FDI sector animportant part of the local economy and attaches importance to promoting the sector’slong-term development.

According to the official, thecity is now home to more than 8,000 FDI projects with total registered capitalof nearly 45 billion USD. With an average 20 billion USD of export revenue eachyear, the FDI sector accounts for 58.7 percent of the city’s total export value.The sector is employing 670,000 workers and creating indirect employment for millionsof others.

Phong affirmed that the citywill continue with efforts to create a favourable and competitive investmentenvironment in accordance with international standards and commitments innew-generation free trade agreements to which Vietnam is a member. The city’sadministration will always listen to investors and work closely with them forthe city’s sustainable development and the investors’ success, he said.-VNA