Policy making in slow progress

Despite efforts to complete the legal framework for overseas investment, policy making is too slow going to help iron out snags in the management of investment capital and post-checking as the management role of the Ministry of Planning and Investment (MoPI) and local management agencies is not clarified.

In addition, there are no sanctions against local businesses failing to make a full report on the implementation of their overseas projects.

State representative offices overseas are run to a certain extent, like embassies, consulates and trade offices, but not all have actively taken part in promoting overseas investment. Some are even ignorant of the operational projects, and investors then need to keep their eye on.

For this reason, not a few investors have run into difficulty when their projects get off the ground in countries of residence, according to the Ministry of Trade and Industry (MoIT).

Overseas investment needs planning

In fact, overseas investment is diversified in both market share and scales of operation.

MoPI statistics show by March 20, 2013, Vietnam had 742 investment projects in 59 countries and territories, mostly in Laos, Cambodia, Russia, Africa, America, Australia, the US, Singapore and Japan, with a combined capitalisation of US$15.5 billion, mainly in mining, agriculture, forestry, seafood processing and electricity.

The MoIT says as a general strategy for overseas investment is still in the making, no incentive measures have been put in place so far and no agencies in charge of collecting are providing information about the investment trend, legal mechanisms and business opportunities overseas.

In the meantime, many countries have established their representative agencies abroad to seek investment opportunities, like the Japan External Trade Organisation (JETRO) and Korea Trade Investment Promotion Agency (KOTRA), which often arrange fact-finding tours for their businesses.

Seemingly, Vietnam is focused more on attracting foreign investors into the country than promoting investment overseas.

Enhancing the role of Vietnamese representative offices overseas

At a recent trade counsellors conference, MoIT Minister Vu Huy Hoang urged trade offices to get updated on the investment environment and market trend aboard and propose practical solutions to help domestic investors operating in countries of residence.