Vietnam looks towards better investment climate

Speaking at the second mid-term review of the sixth phase of the Japan-Vietnam Joint Initiative in Hanoi on August 2, Hoang said investment and trade ties between the two countries have developed practically, adding that Japanese investors have shown higher confidence in the Vietnamese investment climate.  The official noted that Vietnam and Japan inked cooperation agreements worth up to US$22 billion during Prime Minister Nguyen Xuan Phuc’s visit to Japan last June.  Nagai Katsuro from the Japanese Embassy in Vietnam highlighted close cooperation between the two countries over the past time.  He said Japan wishes to work with Vietnam to address issues regarding Vietnam’s investment climate, which, he said, is expected to be improved  through the Joint Initiative.  During the meeting, the two sides agreed to put forth measures and process of identifying the minimum wage.  Apart from labour and salary matters, they also focused on logistics and transportation services, support to small and medium-sized enterprises and regulations imposed on foreign investors as prescribed in the Investment Law, the Enterprise Law, the Land Law and other laws related to investment and business.  The Joint Initiative, launched in April 2003 as a result of special cooperation between the two Governments, aims to create an open and transparent business and investment climate in Vietnam through a policy dialogue between Japanese investors and concerned Vietnamese ministries and agencies.... [read more]

Quang Tri province has granted investment licenses to 12 projects with a total capital of nearly 2 trillion VND (88 million USD) since the beginning of 2017 (Photo: VNA) Quang Tri (VNA) – The central province of Quang Tri has granted investment licenses to 12 projects with a total capital of nearly 2 trillion VND (88 million USD) since the beginning of 2017. So far, the province has attracted 316 projects worth more than 68 trillion VND (nearly 3 billion USD), of which 208 were put into operation. According to Tran Doan, head of the provincial management board of economic zones, 20 more projects worth over 82 trillion VND (3.6 billion USD) will receive investment licenses in the time to come. Local leaders have organised many working delegations to promote investment and worked with strategic investors to attract these projects so as to foster socio-economic development, generate more jobs and increase the locality’s budget collection. The province has cut down the number of small projects which require large land areas and cause environmental pollution. Attention has been paid to improving its investment climate by building an attractive, open and transparent environment. Quang Tri also signed memoranda of understanding on cooperation in building a Vietnam-Singapore Industrial Park (VSIP) in the locality with Singapore’s Sembcorp Group and Vietnam’s Becamex Investment and Industrial Development Corporation (Becamex IDC).-VNA... [read more]

In order to meet urgent demands of the international situation and domestic economy, the 7th National Party Congress adopted guidelines on multilateralisation and diversification of Vietnam’s foreign relations, marking the start of its international integration process. The 8th National Party Congress in 1996 decided to “accelerate Vietnam’s regional and global economic integration process”. Resolutions of the 8th Party Central Committee’s 4th plenum held on Dec. 29, 1997 said, “Vietnam should take the initiative to actively infiltrate and extend its international markets”, and stressed, “We must prepare human resources, a legal foundation, and particularly competitive products to integrate in regional and global markets.”The 9th National Party Congress affirmed, “Vietnam will take the initiative to integrate in the international and regional economies in the spirit of making the most of its internal resources, making international cooperation more effective, ensuring independence, sovereignty and the socialist orientation, defending national interests, national security, maintaining cultural identities and protecting the environment”. To realising the Party’s socio-economic development strategy for the 2001-2010 period, which says “building an independent and sovereign economy should coexist with active integration into the international economy”, Vietnam is restructuring the national economy, completing the law and policy system, and making domestic businesses more competitive to prepare for international economic integration. In 2002, the Party Political Bureau issued Resolution 07 on international economic integration, emphasising consistent guiding principles for the process. To fulfil the Resolution, the Prime Minister and his Cabinet issued an action plan and assigned specific tasks to the ministries, branches and…... [read more]

During a banquet, State President Nguyen Minh Triet told Swiss President Doris Leuthard about a Swiss friend, Alexandre Yersin, who conducted famous scientific research more than 100 years ago that brought huge benefits to the Vietnamese people. Alexandre Yersin made remarkable contributions to forming a modern medicine sector and training the first generation of doctors and nurses for Vietnam. His name has become popular among Vietnamese people. Many streets, squares and research centres bear his name. It is possible to say that Alexandre Yersin is a symbol of friendship between the two countries. In Vietnam’s history, Switzerland has also secured a firm stance. In 1954, Geneva witnessed negotiations and the signing of an agreement on ending the war in Indochina and restoring peace in Vietnam. In the current period of Vietnam’s international economic integration, Geneva once again saw the moment when the country officially became the 150th member of the World Trade Organisation (WTO) in November 2006. Switzerland is one of the first Western European countries that established diplomatic ties with Vietnam in 1971 while the country was still in wartime. President Triet affirmed that the Vietnamese people are grateful for Switzerland’s strong support and close friendship with Vietnam. “Switzerland has continued to cooperate and help Vietnam through official development assistance (ODA) and poverty reduction programmes that have proved effective over time,” he said. Swiss President Doris Leuthard, 47, expressed good sentiments towards Vietnam. She told Mr Triet that she was interested in Vietnam’s initiatives in implementing economic reform, especially…... [read more]

Vice President Joe Biden greeted Xi and his wife as they landed at Andrews Air Force Base on the second leg of a weeklong trip that begin in Seattle. While there, the Chinese leader sought to reassure US companies that he is working to create a more favorable Chinese investment climate. The two presidents will make a joint announcement on climate change on September 25 in a effort to build momentum toward a global climate change pact in Paris later this year. The statement will build on the breakthrough announcement they made last year where the two countries set targets to either halt or reduce their emissions. Planned announcement on September 25 puts the spotlight on new measures the countries will use to meet those targets, including a national carbon cap-and-trade system that China will launch in 2017.... [read more]

Kyohei Takahashi, Co-Chairman of the Vietnam-Japan Economic Committee, said both countries have been active in realising the joint initiative aimed at creating an open and transparent investment environment. He highly values the initiative, saying it has helped macroeconomic stabilisation, developed the support industry, created better living environments around industrial parks, augmented intellectual property, and expanded retail markets. It has also facilitated the development of public-private infrastructure investment. The two countries have established a macroeconomic group to promote mutual understandings and demonstrated transparency in regards to their international balance sheets and foreign currency reserves, said Takahashi. He also acknowledged some shortcomings, including the lack of clarity in regulations on recalling and dealing with discarded products. Japanese Ambassador to Vietnam Tanizaki Yasuaki suggested the two countries focus on removing obstacles hampering investment to create conditions more conducive to foreign direct investment flows. He revealed that Vietnam has received US$1.2 billion in the first installment of the Japanese Government’s 2012 ODA loans and Japan will soon make its decision on Vietnam’s ODA grant for the whole year. Minister of Planning and Investment Bui Quang Vinh affirmed that in 2012 the joint initiative has helped Vietnam improve economic development policies, especially those relating to the investment climate, contributing to foreign investment attraction. Japan is presently the top foreign investor in Vietnam, he said, adding Vietnam is expected to receive more assistance from the Japanese Government in the future.... [read more]

Generally speaking, 57% of surveyed enterprises said their first-quarter business was far better than the end of last year. Nearly 88% forecast that their second quarter business will be far better than the first quarter, commented GSO head Nguyen Bich Lam. According to the GSO, the sectors forecasted to grow higher than the first quarter include medicine (82.1% of respondents), electricity equipment (69.6%), garments (65.4%), electronics (65.3%), drinks (62.8%) and foodstuff (60.7%). Some 62% of state-owned enterprises (SOEs) said their second-quarter business would be better than in the first quarter while the rate was 59.6% for foreign enterprises and 52.7% for locally-invested enterprises. Some 88.3% of respondents were expecting that their orders would increase and keep stable in this year’s second quarter. Only 11.7% said their orders would decrease in the second quarter. Stronger rises in orders during the second quarter include for medicines (80%), power equipment (66.7%) garments (61.7%), chemicals (60.7%), drinks (58.7%), paper (57.3%) and electronics (57.5%). Regarding export orders, 75.3% of respondents said their first quarter export orders had increased. Some 86% forecast that their export orders would climb higher in the second quarter. Da Lat Flower Biotechnology Joint Stock Company’s general director Nguyen Dinh Son said the company had reaped annual revenue of VND6 trillion (US$280.37 million) and currently had 5,000 hectares of greenhouses used for cultivating flowers. We intend to expand this to five times its current size. The local business and investment climate has remarkably improved, Son said. Anonymous spokesperson from locally-owned fresh milk…... [read more]

The gross domestic product expansion in the first six months has seen nearly all sectors with a higher growth pace than 2014, according to a draft report read at a regular meeting of the municipal People’s Committee on June 4. Industrial production rebounded with an expected value increase of 6.7% while budget revenue will exceed VND72.43 trillion (US$3.33 billion), excluding collections from dividends and remaining profits of State-owned companies. The draft reveals that the capital city succeeded in ensuring demand and supply balance of goods and price stability, especially during the Lunar New Year holiday in mid-February. Hanoi still faced major problems despite such substantial progress, said Chairman of the municipal People’s Committee Nguyen The Thao, pointing out business bottlenecks, export declines and the prevalence of small-scale foreign-invested projects. He added sluggish basic construction and administrative reform, along with mismanagement of land, construction and investment. He stressed that for the remainder of the year, municipal agencies need to continue addressing business difficulties, improving the investment climate and harnessing resources to complete key projects. More attention should also be paid to solving pressing civil issues, ensuring social welfare, creating jobs and reducing the rate of low-income households, Thao noted.... [read more]

Nguyen Hoang Long, standing head of the Foreign Ministry’s Bureau of Consular Affairs, said the two economies have bonded together based on their close geographical distance and fairly similar cultures. According to Long, Japan is the biggest provider of official development assistance for Vietnam over the past 20 years. The former is also the latter’s number two investor and number four trade partner. More than 1,400 Japanese firms are currently operating in Vietnam. This year, nearly100 Japanese officials and businesses visited Vietnamese localities to promote investment. Katsuro Nagai from the Japan Embassy in Vietnam stated that the Southeast Asian nation is a favourable destination of Japanese enterprises, hoping that the seminar will boost bilateral ties and help draw more Japanese investments into Vietnam. Chikahiro Masuda from the Japan International Cooperation Agency in Vietnam underscored the six major sectors for joint collaboration – electronics, agricultural machinery, agro-fisheries processing, shipbuilding, environment, auto and auto spare parts production. Naoki Takeuchi from the Japan External Trade Organisation in Vietnam said a large number of Japanese companies are keen to establish production facilities in Vietnam, suggesting the Vietnamese Government should work more closely to further improve the investment climate.... [read more]

The website was initiated by the Vietnamese Ministry of Planning and Investment to promote cooperation and development between the three countries, particularly in the development triangle area. The draft agreement focuses on regulations for managing and operating the website, including administration, editing, providing and checking information and data posted on the website. Under the agreement, the information provided by each country on the website will be in line with the web page’s purpose as well as the laws and regulations of each country, and will not jeopardize their independence, sovereignty, territorial integrity or benefits. It will promote friendship and cooperation for development among the three countries. The website is being piloted at in English, Khmer, Lao and Vietnamese. It aims to introduce the potential and advantages of provinces in the development triangle area, provide and share information about the triangle, post news on the investment climate, tourism, administrative procedures, business and production of the three countries. The Cambodia-Laos-Vietnam development triangle currently comprises 13 provinces, including Kon Tum, Gia Lai, Dak Lak, Dak Nong and Binh Phuoc in Vietnam , Sekong, Attapu, Saravan and Champasak in Laos , and Stung Treng, Rattanakirri, Mondulkiry and Kratie in Cambodia.... [read more]

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