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VietNamNet Analysts and economists, siding with domestic businesses, have voiced great concern over the generous incentives given to foreign invested enterprises (FIEs) and the undervalued role of Vietnamese businesses in the national economy.

Do Duy Thai, general director of Viet Steel Corporation, said he would like to have some of the incentives the government offers to Formosa, the Taiwanese steel manufacturer in Ha Tinh province.

If Vietnamese manufacturers were also offered such incentives, they would also be able to make all kinds of steel products the market needs, he commented.

However, it seems that the special treatment is only given to FIEs.

Like Thai, many Vietnamese businessmen said they are envious of the preferential treatment FIEs can enjoy tax incentives, preferential land-use right fees and priority in working with state management agencies.

Foreign investors tend to be more and more demanding, while the government tends to overindulge them, commented Pham Chi Lan, a renowned independent economist.

Lan said that by competing with each other to lure foreign investors and offering such investment incentives, provincial authorities have been tripping each other up and killing Vietnamese enterprises.

When Vietnam offers big incentives to Samsung, it also offers incentives in land and tax to Samsungs satellite businesses.

Meanwhile, Vietnamese enterprises in the same business fields cannot enjoy such preferences. They still have to lease land at normal prices and pay the normal corporate income tax rate of 22 percent.

Read more from the original source:
Vietnam offers foreign-invested enterprises special favors