The much-talked issue was specially highlighted at the international real estate conference and exhibition called VnTOP-2009, jointly organized by Vietnam Tourism Property Association and Sao Khue JSC at the White Palace Convention Center in HCMC on Wednesday (21 Oct).

 

Most speakers reckoned the promising property market has wooed investors, but the country should take drastic actions to cut down unnecessary formalities so as to fasten licensing procedures to attract more foreign investors.

 

An investor coming from the capital city of Hanoi told audiences that he had been waiting for 24 months to receive a license for a property project in the northern region. “If a local investor has to face such difficulty, how much a foreign one will be challenged?” he pondered, adding that simplifying procedures was a must to lure investors in the coming time.

 

At the two-day event, some speakers claimed that competence of government officials were a hindrance besides mechanism in solving investment procedures.

 

Frederick R. Burke, managing partner of Baker & McKenzie, said that Vietnam was not lacking the law, but had many regulations to control the property market. The problem was that administrative personnel did not devote themselves to their jobs. Burke said sometimes administrative staff were a real hindrance for investors while they saw no problem in higher-ranking officials.

 

Supporting the idea, Tran Xuan Gia, former minister of planning and investment, said that the problem was more of the human side. While “one rotten apple spoils the barrel, some time there are many rotten apples,” he said.

 

Brett Ashton, managing director of Savills Vietnam, said that licensing procedures for a property investment or construction here in Vietnam often took a longer time than in neighboring countries. “This is one of the most disadvantages I’ve ever seen,” Ashton said on the sidelines of the property conference.

Some noted that besides creating favorable conditions for new investors, Vietnam should have policies to encourage existing investors to expand business in the market.