Foreign investors suggest HCM City focus on policy consistency
(03/22/2004 -- 16:58GMT+7)
HCM City, Mar. 22 (VNA)- Tax rates, capital market development and investment licensing were major concerns of foreign investors who requested Ho Chi Minh City authorities to focus on consistency and transparency in policy making at a meeting last week.
“Foreign investors need clear tax laws and regulations with minimal changes and consistent enforcement”, Richard Irwin of Pricewaterhouse Coopers said at the meeting, the second since October 2002 which was part of the city’s initiatives to attract foreign investment.
Irwin, who welcomed improvements in tax regulations, said that relevant authorities need to favour a system that ensures fair settlements in cases in which there are disagreements between tax offices and tax payers. “Tax rates and incentives should be competitive to other countries”, he said.
Investors said that they want tax policies that are in line with international tax principles and double-taxation avoidance agreements.
Alain Canny, General Director of HSBC, suggested the establishment of a capital market development committee that would co-ordinate a unified approach to developing the domestic market.
Eligible issuers of bonds in the domestic market should be diversified and the investor base should be widened by simplifying eligibility requirements, he said, recommending that the legal framework should be strengthened and that regulations clearly define the rights and obligations of issuers and buyers.
Other issues raised included granting of visas for investors, simplifying of entry and exit procedures, intellectual property, E-Government and land clearance.
Ho Chi Minh City’s Deputy Mayor, Nguyen Trong Nhan, said the city planned to set up an organization specializing in retrieving unused land for investors.
He said city authorities will step up administrative reform and support services to foreign investors, improving infrastructures and ensuring transparency, especially regarding land issues.
