Greater Effort to Address Hindrances to On-going Projects

Despite negative COVID-19 pandemic impacts, domestic and foreign economic fluctuations, Vinh Phuc province has still managed to improve the business investment environment in industrial parks. To achieve that result, over the past time, the Vinh Phuc Industrial Parks Authority has worked hard to support investors and companies to tackle their difficulties.

In the first eight months of 2022, the Vinh Phuc Industrial Parks Authority granted/regranted 320 work permits; approved foreigner recruitments for 93 companies; received 36 labor regulations and 11 collective bargaining agreements, and registered an additional 300 hours for 22 companies; and regularly urged companies to strictly comply with legal provisions on labor with foreign elements in Vinh Phuc. It directed enterprises to strengthen environmental protection, strictly control emissions that pollute the water and air environment; and manage industrial waste and domestic waste according to the law.

Besides, the Vinh Phuc Industrial Parks Authority requested industrial park infrastructure developers to improve fire prevention measures and set up specialized fire teams; guided and supported investors to carry out administrative procedures on investment, labor and construction; and facilitated them to tackle difficulties and obstacles in project investment and implementation.

Mr. Vu Kim Thanh, Deputy Director of Vinh Phuc Industrial Parks Authority, said, the biggest difficulty in the current management of post-licensed projects is the authorization of State labor management, planning and investment, construction and labor management. According to Decree 152 of the Government, the Department of Labor, Invalids and Social Affairs is responsible for extending expired work permits. The authorization of State labor management is a closed process from issuance, re-issuance, extension and revocation of work permits. Dividing each content between two different authorities in a closed process will cause difficulties in the management of foreigners working for local companies. With its inspection and supervision, the Industrial Parks Authority discovered some violators of planning and investment, construction and labor management to the extent that administrative violations were imposed. However, the agency is not given the power of inspecting and sanctioning administrative violations. Whenever it finds any breach, it is incompetent to apply any sanction but reports to and coordinates with competent agencies for further settlement. This reality adversely affects its supervision of enterprises.

To clear difficulties in post-licensed project management, the Vinh Phuc Industrial Parks Authority recommended that the Provincial People's Committee direct relevant bodies and local authorities (where industrial parks are located) to coordinate labor management and ensure security outside industrial parks. The Industrial Parks Authority has further accelerated public administration reform, improved the business and investment environment; regularly exchanged information and coordinated with the Provincial Public Administration Service Center to ensure lawful implementation of administrative procedures.

At the same time, the provincial government assigned the police to work with the authority of industrial parks to complete documents on construction designs and drawings; appraise, approve and accept firefighting systems at Ba Thien Industrial Park (75.9ha) and other contents; allowed Vinh Phuc Investment Support Service Center (under the Industrial Parks Authority) to hire a certified unit to perform on-site fire prevention and protection work. In addition, the industrial park arranged a workplace, accommodation, and garage for the firefighting force. The Vinh Phuc Industrial Parks Authority also asked central authorities to give specific instructions on its power. The Industrial Parks Authority proposed the Ministry of Labor, Invalids and Social Affairs soon issue a circular to amend and replace Circular 32, which is no longer suitable for State management on some labor affairs in industrial zones.

Assisted by the Vinh Phuc Industrial Parks Authority, tenants have maintained stable business operations, and ensured employees’ welfare; and the province has been able to draw more investment funds into industrial zones.

Nguyet Tham (Vietnam Business Forum)