By The Straits Times | Created at 2024-12-20 06:06:01 | Updated at 2024-12-20 12:19:56
7 hours ago
HANOI - Vietnam's government said on Dec 20 that plans to significantly overhaul its administration will not affect project approvals, amid investor concern it could lead to delays in the coming months.
The South-east Asian country, a regional industrial hub, is planning its boldest bureaucratic reform in decades, which in its current proposals would involve cuts to multiple state bodies, including the abolition of five ministries, four government agencies and five state TV channels.
"The restructuring process will not affect the implementation of investment procedures and processes in Vietnam because the state management function remains unchanged," foreign ministry spokesperson Pham Thu Hang said in a statement to Reuters.
Investors, diplomats and officials have welcomed the reforms, which are designed to reduce red tape and bureaucracy, but many anticipate administrative delays in the coming months.
The Communist-run country relies heavily on foreign investment in manufacturing to fuel its booming export-oriented economy.
But in recent years, investor discontent has grown louder over delays in project approvals and regulatory reforms, compounded by a sweeping anti-corruption campaign.
The administrative overhaul, which could be amended ahead of a vote in Parliament in February, is meant to address those concerns.
"Along with the restructuring process, Vietnam continues to have strong regulations on simplifying investment processes to facilitate foreign enterprises' operations in Vietnam for the long term," Ms Hang said. REUTERS
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