Edmund Malesky Quoted in VietnamNet
Underground fees discouraged foreign investors
03/20/2011
VietnamNet
Unlike domestic enterprises, foreign invested enterprises FIEs highly appreciated the dynamism and infrastructure conditions in localities. However, the positive feelings cannot help drown the worry about bribery and the lack of transparency in policies.
Dr. Edmund Malesky, representative from USAID, said foreign investors are complaining that unofficial expenses are the most serious problem in Vietnam. 20 percent of FIEs say “they had to pay such a fee when registering business.” 40 percent of enterprises said they had to pay a “commission” when joining bids for public procurement projects.” 70 percent of enterprises had to pay the so called “lubricating fees” in order to get goods cleared quickly. Meanwhile, FIEs have no other choice than paying the unreasonable fees. Fruit importers and exporters, for example, always have to try to get imports and exports cleared as soon as possible, or products will get spoiled soon.
However, the problem is though even for enterprises paying such lubricating fees. They still cannot join the market more easily. Mr. Edmund Malesky from USAID said “FIEs always have to struggle with the regulations set by local authorities. It takes businesses more than one month to complicate legal procedures (it took domestic enterprises half a month), which is really a burden on FIEs.”
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Edmund Malesky can comment on political development in Vietnam and China, as well as comparative political economy in Southeast Asia. He also can provide insight into the choices underlying the decisions of foreign investors and thereby the globalization debate, especially in regard to the discussion of "sweatshops" in developing countries.
