Frequent regulatory changes to make Vietnam more risky destination for foreign investors: experts

HANOI, Dec. 7 (Xinhua) -- Vietnamese and foreign experts and businesses agreed here on Thursday that Vietnam should maintain a stable regulatory environment to become a competitive and attractive destination for investors.

At a workshop held by the Vietnam Chamber of Commerce and Industry, Vietnam's Foreign Investment Agency and the American Chamber of Commerce (AmCham), Director of Vietnam Trade Facilitation Alliance Herbert Cochran stated that frequent regulatory changes will make Vietnam become more risky destination for foreign investors.

The proposed increase of value added tax from 10 percent to 12 percent and the imposition of excise tax of 10 percent on certain sweet beverage will hurt investors in the beverage industry and consumers, he said.

Vietnamese lawyer Le Net said some documents such as a decree on guiding the implementation of the Law on Pharmacy includes provisions that are inconsistent with the law and World Trade Organization commitments.

The decree would force some current foreign-invested enterprises to close their fully licensed warehousing and transport services or change their business model, the lawyer stated.

Adam Sitkoff, executive director of AmCham in Hanoi, said: "We are concerned with recent changes in policy and regulations, which are not consistent with international best practices. These changes expose many foreign investors to considerable risks and obstacles in executing their investments."

Vietnam attracted roughly 33.1 billion U.S. dollars in foreign investment in the first 11 months of this year, up 82.8 percent on-year, the Foreign Investment Agency said, noting that 19.8 billion dollars was poured into 2,293 new projects, nearly 8 billion dollars into 1,100 operational ones, and roughly 5.3 billion dollars into buying shares of companies. Enditem