At the seminar “Southern key economic region” organized on October 30 in Ho Chi Minh City, representatives of ministries and HCMC pledged to facilitate foreign investment.
With eight provinces and cities (HCMC, Dong Nai, Binh Duong, Binh Phuoc, Ba Ria – Vung Tau, Tay Ninh, Long An, Tien Giang), the Southern key economic region has contributed over 40 per cent of GDP, 60 per cent of export turnover and 65 per cent of budget revenue of Vietnam. However, at the seminar, foreign investors still complained that existing infrastructure, traffic, environment and administrative formalities remain hurdles to their business activities. According to Mr Don Lam, Director General of VinaCapital, their main concern is the infrastructure and traffic in Vietnam, especially in Ho Chi Minh City, with continued traffic jams and flooding.
Meanwhile, land clearance and compensation for resettlement are not small issues for investors in real estate. “Vietnam should avoid the ‘beaten path’ of China and India, instead developing the economy while protecting the environment,” warned a foreign investor.
Acceleration
Mr Walter Blocker, Director General of Gannon VN said that Gannon came to Vietnam in 1994, which he regarded as an era of miracles, unlike any time before and not likely to re-occur in the future. For its part, VinaCapital, starting with US$10 million for VOF fund, has now become the most successful investor in Vietnam with US$1.8 billion and has expanded to other sectors.
However, Mr Rick Mayo Smith believed that Vietnam should make greater efforts to reach higher achievements. In regional context, Vietnam’s achievements remain modest. For instance, the number of tourists to Vietnam still lags far behind Thailand. Much more should be done for Vietnam tourism. Vietnam’s tourism potential should not be overlooked.
In spite of high growth rates, Vietnam remains behind other countries in the region. As a friend of Vietnam, Mr Rick Mayo Smith said, “Vietnam must pass other countries. I believe Vietnam has the chance to do it. The Vietnamese economy, especially its property market, is most attractive”.
Commitments by the host country
Concerning the issues raised by foreign investors, Vice Minister of Transport Ngo Thinh Duc said the government encourages foreign investments in attractive areas and will accelerate project evaluation and implementation.
In addition to preferential treatment like capital recovery for infrastructure development, 1.5-2 times higher depending on projects, provinces and cities can assist investors on land use rights, developing industrial zones, exclusive advertisement, services and transit stations.
As for the environment, the government has the policy of developing economically alongside with environmental protection, giving high priority to clean industries and saying no to projects causing pollution. “Foreign investors should focus on those projects,” Mr Hoa concluded.
For his part, Chairman Le Hoang Quan of HCMC People’s Committee promised to do his best to ensure a friendly environment and a democratic and transparent legal framework.
According to Ministry of Planning and Investment, by the end of October 2007, the Southern key economic region attracted 5,250 investment projects with registered capital of over US$41,555 million, accounting for 64 per cent of projects and 55 per cent of investment capital in Vietnam. It has 72 industrial zones on 18,054 hectares, 47 per cent of industrial zones and 55 per cent of industrial area of Vietnam. In 2006-2010, total FDI will be US$10.3 billion.
N.L.D
Vietnamese
