Many localities are becoming more careful in licensing new foreign direct investment (FDI) projects, setting more specific conditions on investors and selecting only projects in line with their development objectives.
The People’s Committee of Quang Nam province in Central Vietnam recently announced that it would withdraw investment licenses of five FDI projects on tourism due to slow progress.
A large number of projects revealed significant shortcomings, such as pollution, heavy imports of out-of-date technologies and equipment, and their investors’ failure to fulfill their commitments.
There should be measures to control the quality of investments, including laws, policies and planning that promoted infrastructure construction and human resource training, said FIA Director Do Nhat Hoang.
The criteria for granting an investment license would now look not only to the creation of jobs but also to the use of clean and modern technologies in production and the combination between investment and allied industries and services. Infrastructure and human resource elements of projects would also be taken into account.
Investors would undergo stricter assessments before receiving investment licenses, especially for land-intensive projects.-