Foreign Investment Ombudsman June 17, 2013 Astana АО «НАЦИОНАЛЬНОЕ АГЕНТСТВО ПО ЭКСПОРТУ И ИНВЕСТИЦИЯМ «KAZNEX INVEST» Министерство индустрии и новых технологий Республики Казахстан
International practice INDONESIA MEXICO RUSSIA USA CHILE SOUTH KOREA At the central level - the Committee on investment monitoring and implementation within Indonesian Investment Coordinating Board At the regional level - Head of Regional Investment Promotion Agency The system of investor protection in Mexico is consisted of local executive authorities and public bodies under the chairmanship of the Ministry of Economy of Mexico. Investment promotion agency (Pro Mexico) in coordination with the Ministry of Internal Affairs of Mexico The Commissioner for the Protection of the rights of entrepreneurs on the basis of the Public Chamber of the Russian Federation. At the regional level: Deputy presidential representatives in the Federal districts Federal Interagency Investment Working Group The Committee on Foreign Investment Korea Trade-Investment Promotion Agency (KOTRA), under the coordination of the Ministry of Commerce, Industry and Energy International recognition: World Bank estimated the activities of the Ombudsman of South Korea as an example of best practices to promote foreign investment; Recommendations to the members of UNCTAD to consider the possibility of introducing an ombudsman using the South Korean experience; Using the experience of South Korea as the bench-mark - Representatives of 17 countries visited the Office of the Ombudsman for the learning experience; 2
Foreign Investment Ombudsman in Korea Established in 1999 within KOTRA «Foreign Investment Promotion Act» Foreign Investment Ombudsman Investment Consulting Center Representatives of government authorities: Ministry of Industry, Trade and Energy Ministry of Land, Infrastructure, Transport Ministry of Labor Ministry of Justice Ministry of the Environment National Tax Service Korea Customs Service Ministry of State Legislation Relevant judicial authorities There are also representatives from the local representative bodies provinces Investment Aftercare Division IAD:13 employees out of which 9 «Home Doctors». Competence: finance, tax, accounting, law, intellectual property, construction, employment law Function: to receive and consider complaints; Consultations in the field of their competence; Making suggestions for improving legislation; Coordination with government agencies on related investment issues. The results of operations: from year 2000 to 2012 assisted in the resolving of 4500 issues (grievance of investors) 3
Considered grievance cases In 2012 the Ombudsman considered and assisted in solving 348 investors problems. Type of grievance: Obtaining investment incentives 13,5% Certification and control 12,1% Investment procedures 11,2% Issues of taxation 10,9% Visa and migration issues 7,5% Labor issues and dispute resolution 7,2% Issues related to project sites 7,2% issues of import / export and customs legislation 5,5% Others 25% 4
Investor Support Centre within «KAZNEX INVEST» JSC (Investment Ombudsman Services) 5
Establishing of Investor Support Center (working body to the Investment Ombudsman) Investor Support Center (Investment Ombudsman Service) Head of Service Outsourcing (consulting company) Expert (Personal Manager) Competence: Accounting, Finance and Taxation; Import / export and customs laws; Expert (Personal Manager) Competence: Labor issues and dispute resolution environmental issues visa and migration issues Expert (Personal Manager) Competence: Construction and licensing; Collaboration with local authorities Certification and control 6
Decision reinvestigation Scheme to address issues WG Secretariat - Committee on Investments MINT RK Working Group on Protection of rights of foreign investors 3 2 Proposals reports Investor Government bodies and local authorities 1 Investors Associations Foreign Embassies Investor Support Center 7
1 st step: Stakeholder interaction Business associations Foreign Embassies in Kazakhstan Investors Embassies of Kazakhstan abroad Investor Service Centers in regions Investor Service Center Directing grievance: Through the site: www.invest.gov.kz; E-mail: ombudsman@kaznexinvest.kz Tel: 8 (7172) 79 9393 (1083, 1073) Links to websites: Kazakhstani and foreign diplomatic missions; government agencies; business associations; Investor Service Centers in the regions; Roundtables and meetings with investors; Surveys 8
2 nd step: Joint consultations and development of solutions Investor Service Center Investors Government bodies compliance with the confidentiality and non-disclosure; effective collaboration of all stakeholders; ensuring the competence of the personal managers" 9
The importance of the protection of foreign investors Improving the investment climate Increase in FDI inflows, including the non-extracting sector The introduction of a systematic approach to solving the problems of investors who invest in non-extracting sector According to international statistics, about 65% of the investments are from existing investors. In South Korea, the volume of re-investment is about 51% of FDI. While the expenditures spent to work with existing investors accounted for 20% of the total funds allocated for attracting FDI. In Kazakhstan: Foreign Investors Council under the President of the Republic of Kazakhstan and the Council to improve the investment climate under the Prime Minister of Kazakhstan, whose activities are more focused on addressing systemic issues. 10
Contacts: Astana, Syganak Str. 25, business center «Ansar», 2-floor Nurbolat Seitmagambetov Tel: 8 (7172) 79-93-93 (1083, 1073) +7 701 111 5957 E-mail: ombudsman@kaznexinvest.kz 11