This is the direction of Mr. Tran Son Hai - Member of the Standing Committee of the Provincial Party Committee, Permanent Vice Chairman of Khanh Hoa provincial People's Committee at the meeting with related departments on the situation of enterprises which transfer capital for foreigners in the province.
At the meeting, after hearing reports from related departments, Mr. Tran Son Hai asked the Department of Planning and Investment to review the administrative procedures related to the establishment of the enterprises and the purchase and sale of shares. Any procedure that is not suitable with reality, creating a gap for foreigners and domestic enterprises to circumvent the provisions of Vietnamese law, taking advantage of the conversion of shareholders in joint-stock companies for long-term stay and doing business in Vietnam, recommending and proposing the Ministry of Planning and Investment to adjust. Also review the number of enterprises that have converted shares to foreigners to report specifically to the provincial People's Committee; preside, coordinate with concerned departments and branches to build and implement post-inspection plans after the establishment of enterprises and inspecting cases of signs of violation.
At present, in Khanh Hoa province, the status of individuals registering to establish an enterprise with a Vietnamese legal entity, then, within a short time, transferring shares to foreigners. In this form, foreigners make long-term stay in Vietnam without having to register for visas and carry out business activities in the province. In the province, there are 221 FDI enterprises changing their shareholders, members due to transfer of shares, capital (data from July 1st 2015 to December 27th 2017), of which 173 are operating, the rest dissolving or stopping.