Many FIEs face closure

Jun 18, 2012. Thousands of foreign-invested enterprises are in jeopardy because of missing a crucial investment certification re-registration deadline.

The proposal was sent in the context that there are 784 foreign-invested enterprises (FIEs) in the city missed the re-registration deadline on July 1, 2011 and now face having to stop operating once their investment licences expire. Some 27 FIEs must stop operating in 2012 and 174 others will share the problem in 2013 and 2014.

According to the municipal people’s committee, some typical cases in point are Taiwan-based Saigon Joubo Textile Co. Ltd, Sweden-based FKS Vietnam and Australian-backed RMIT University Vietnam. Le Manh Ha, vice chairman of the committee, said this was a big issue because most FIEs wanted to continue doing business in Vietnam.

Ho Chi Minh City People’s Committee, in its proposal to the prime minister, suggested two options. FIEs could receive certificates of operation extension or they be granted new investment certificates with new corporate names and copy all operating content of the previous certificates.

“I think this regulation of re-registration should be revised to help FIEs. The better business climate we create for foreign investors, the more the economy benefits,” said Nguyen Van Tu, deputy director of Hanoi’s Department of Planning and Investment.

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