LookAtVietnam -
The Ministry of Planning and Investment is considering drastic new measures to
tighten oversight of outward investment by firms, according to Viet Nam
Investment Review.
Overseas investment has risen significantly in recent years
to around US$1 billion this year, and is expected to rise to at least $2.2
billion next year.
But the newspaper said the existing system was slack,
pointing out that of the 558 overseas projects – 70 per cent of them belonging
to the public sector – only 300 submitted annual reports to relevant agencies
while 67 did not exist.
The majority of those filing reports were major firms that
account for most of the foreign investment, it added.
However, the others’ flouting of rules has caused
difficulties for Government agencies responsible for managing overseas
investments.
Recently, while trying to gather information on overseas
investments to amend a draft decree, the Ministry received responses from only
half of the country’s 63 provinces and cities.
Significantly, Ha Noi and HCM City,
which accounted for most of the investments, failed to respond, the review
stressed
Because they lacked information on overseas investment,
authorised agencies have been unable to control the capital already transferred
abroad and firms’ use of profits.
Some firms had not repatriated their profits to Viet Nam.
To better manage overseas investments in the interim, the
Ministry planned to work with agencies like provincial business registration
and tax offices and the police to inspect firms that did not file reports on
their overseas projects.
In cases where the agencies could verify overseas addresses,
the Ministry would ask the police to investigate and possibly revoke the licences
issued to invest abroad.
Source:
VNS