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Binh Phuoc firms plagued by overlapped management

Binh Phuoc firms plagued by overlapped management

Saturday, May 25, 2013, 11:39 GMT+7

Businesses in the southern province of Binh Phuoc say what is most worrisome to them is not how the market fluctuates or where to get the money, but how to deal with the overlapped management of local administrative agencies.

Their complaints were voiced at a meeting authorities held to listen to local businesses, where the province’s deputy leader admitted the shortcoming and apologized to the angered firms.

One of such complainers, Thanh Cong Co Ltd, is on the verge of bankruptcy even though its new bus station project is yet to reach completion, according to director Tran Phu.

The project, aimed to set up a bus station with a number of facilities including a filling station, eatery, and ticket office, has been approved by the departments of planning and investment, industry and trade, and natural resource and environment, and the provincial government, he said.

“Work is now 90 percent done and the province’s transport department suddenly rules that the filling station is only allowed to serve our buses, rather than selling widely to the public,” the director said.

Unable to sell to the public means a huge financial damage for the company, Phu said.

“Moreover, this is against the investment attracting policy of the province’s government, as well as the Law on Enterprises,” he added.

Gia Thien Co Ltd, meanwhile, is yet another victim of the overlapped management.

In April 2011, the company was allocated 778 hectares of a poor forest, and passed all procedures to be licensed to grow rubber on the land plot.

When work has already started, the company was asked to return 10 percent of the area for the province’s welfare fund, director Huynh Van Thien said.

“The company reluctantly followed the request, but the agriculture department has recently asked us to return another 10 percent of the area, which I deem an unreasonable directive,” he said.

“Other businesses only have to return 10 percent, so why it is 20 percent to us?” he said.

Repeated inspections

Other businesses they are not plagued by the inconsistent management of local agencies, but suffer another issue: the repeated inspections conducted by multilevel agencies, from the commune to province levels.

“There are firms that had to come under inspection for one same issue in as long as two to three years,” said Vu Manh Hung, chairman of the province’s Young Business Association.

A company director said there was month when his company had to receive tens of inspectorate team, from the commune’s, district’s, and province’s agencies, though they all came to inspect one same issue.

“Strangely enough, some agencies came to inspect our machinery, but also demanded to look at our accounting records and financial reports,” he added.

Addressing the meeting, Pham Van Tong, deputy chairman of the province’s local government, said he acknowledged all troubles that local companies have suffered, and delivered his apology to them.

“We will first review all the complaints of the firms, and will seek to resolve them as soon as possible,” he told businesses.

“Our policy is to create conditions for businesses to operate, so any agencies that commit wrongdoings will be sanctioned as per laws,” he promised.

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