HÀ NỘI — During a dialogue with Prime Minister Phạm Minh Chính and representatives from various ministries on March 2, European enterprises voiced concerns over tightening regulations on the on-the-spot import-export mechanism.

The European Chamber of Commerce in Việt Nam (EuroCham) has urged the Government to maintain this policy until a formal legal framework is established, ensuring a stable business environment for enterprises.

At the meeting, Nguyễn Hải Minh, Vice Chairman of EuroCham, stated that many European corporations not only engage in outsourcing but have also built extensive supply chains in Việt Nam. This has significantly contributed to economic growth, job creation and the enhancement of domestic production capacity.

However, the on-the-spot import-export mechanism — which has helped businesses reduce costs, shorten delivery times and increase competitiveness — is now at risk of being abolished.

Minh highlighted that Decree 08/2015 had provided flexibility for businesses in trade transactions, but current policies are becoming increasingly restrictive. Furthermore, the Ministry of Finance has proposed a complete removal of this mechanism, raising concerns among foreign investors.

Under existing regulations, on-the-spot import-export allows goods produced for export to be sold to a foreign merchant but delivered directly within Việt Nam to a designated local entity. This applies to processed products, leased or borrowed machinery, surplus materials, waste products from processing contracts, transactions between domestic enterprises and export-processing enterprises, and goods sold to foreign organisations or individuals without a physical presence in Việt Nam but designated for domestic delivery.

In response to the policy changes, EuroCham proposed maintaining the on-the-spot import-export mechanism until it is formally legislated. Minh also called on the Government to allow all foreign merchants — whether they have a presence in Việt Nam or not — to continue participating in this mechanism, as previously permitted. This would help avoid disruptions in supply chains and business operations.

After listening to EuroCham’s concerns, Prime Minister Phạm Minh Chính directed Deputy Prime Minister Hồ Đức Phớc to hold a specialised meeting to seek appropriate solutions. Deputy Minister of Finance Nguyễn Thị Bích Ngọc also confirmed that the ministry would work with the Ministry of Industry and Trade and the Ministry of Justice to review and coordinate a suitable policy approach.

Beyond the import-export issue, European businesses raised several other investment challenges in Việt Nam. Koen Soenens, Sales and Marketing Director at Deep C, called for a stable supply of green energy for European enterprises and pointed out issues related to customs procedures and distribution systems.

Andre de Jong, Managing Director of Bosch, noted that his company faces difficulties accessing investment support funds due to excessively high minimum investment requirements. He proposed adjustments to encourage further foreign investment.

He also stated that business licensing processes in Việt Nam are slower compared to other ASEAN countries, affecting the timely execution of foreign investment projects.

In response, Deputy Minister Nguyễn Thị Bích Ngọc emphasised that the Investment Law had delegated greater authority to local governments in handling investment procedures. Currently, the processing time for investment registration certificates has been shortened to 15 days, except for projects involving land allocation or leasing, which require around 45 days for evaluation.

She also highlighted that the National Assembly has approved special mechanisms for investment projects in industrial parks, economic zones and export processing zones. In the high-tech sector, licensing procedures are being revised to shift from pre-approval to post-audit mechanisms, demonstrating the Government’s commitment to easing investment regulations.

Regarding taxation and customs, the Ministry of Finance is implementing comprehensive reforms to streamline clearance procedures and facilitate business operations. In the near future, the ministry will review all investment, tax, customs and treasury procedures to simplify administrative processes while ensuring regulatory compliance.

Maintaining the on-the-spot import-export mechanism and improving the investment climate will be key factors in attracting and retaining European investments, contributing to Việt Nam’s sustainable economic growth in the years to come. — VNS