Japan has been the largest provider of ODA for Vietnam and one of the largest foreign investors in Vietnam. The two-way trade revenue is on the rise and expected to reach US$15 billion in 2010. Vietnam Business Forum had an interview with H.E. NORIO HATTORI, Japanese Ambassador Extraordinary and Plenipotentiary to Vietnam to serve Vietnam-Japan Business Forum to be held in Japan during the visit of Vietnamese President Nguyen Minh Triet to Japan in late November 2007.
Could you please introduce major achievements of economic and cultural achievements of the two nations in the past years?
I have been in Vietnam for five years and in my first year here, I proposed to conduct Vietnam -Japan Joint Initiative to enhance competitiveness and improve investment environment in Vietnam. The first phase of the joint initiative was very successful and the two sides began meeting to discuss the second phase on the basis of the successful experiment of the 1st phase two years ago. I hope the result will be very successful, especially with the visit of Vietnamese President Nguyen Minh Triet in November. I highly appreciate the efforts of the Vietnamese Government in improving the investment environment such as taxation system, governmental mechanism, hard and soft infrastructure; thus, the investment flows from Japan into Vietnam rose 30-40 per cent annually on average. At present, Japan is the largest ODA provider for Vietnam and one of three largest foreign investors in Vietnam.
In cultural area, the two nations also have nice achievements. However, the presentation of Vietnamese cultural activities in Japan is not at the level we hope to be. Hopefully, these activities will be enhanced in the coming time. Personally, one of my top priority during my mission here is Japanese languague education so I was very happy when the Vietnamese government officially introduced Japanese language as a foreign language in secondary schools in Hanoi, Ho Chi Minh City, Hue and Da Nang based on my proposal. Besides, in Ho Chi Minh City and Hanoi, many Japanese language teaching centres have been set up to meet the growing demand. This is the great achievement between the two nations and will contribute to further our relationship in the future.
How do you think about the investment and commercial environment in Vietnam now?
After the visit of Vietnamese Prime Minister Nguyen Tan Dung to Japan last year, the two nations have agreed to bring up the bilateral trade revenue to US$15 billion by 2010. This figure is within reach. Especially, Vietnam has joined the WTO, with clearer and opener commercial policies.
On investment, the Japanese capital pumped into Vietnam increased almost 40 per cent last year compared with the year before. However, Vietnam still has to resolve several aspects such as infrastructure, logistics and communication to draw more Japanese capital. Personally, I am optimistic about the Vietnamese investment environment.
Do you think the reform of the Vietnamese government satisfy Japanese investors’ expectations?
I cannot be sure that all Vietnamese reforms satisfy expectations of Japanese investors. However, in my opinion, the Vietnamese government is doing very well and is on the right track to satisfy investors’ desires. The importance is that you are willing to listen to the proposals of foreign partners and when there are unsuitable decisions, Vietnam should timely correct the wrongdoings. This is a good deed.
Most Japanese investors in Vietnam are satisfied with their business as your country provides favourable conditions such as hardworking, skilful and low-paid labourers, stable politics and security. These are essential conditions for investors.
To reach US$15 billion two-way trade revenue, what should Vietnam do?
In the list of Vietnamese exports to Japan, you can see that aquatic products are now the largest cash earner but it is facing a big problem that is hygiene and food safety. To solve this problem, appropriate measures should be taken by Vietnamese side not by Japanese side.
Apparel and textile are also favourite products of Japanese. At supermarkets in Tokyo or Osaka, Vietnamese apparels and textiles can compete with Chinese and others.
In general, to be welcomed and survived in Japan, the commodities must be diversified and attractive to meet the requirement of developed nations’ markets. Vietnam should diversify its products.
What is the Japanese investment tendency in Vietnam now?
Unlike other nations, Japanese investment in Vietnam mainly focuses on manufacturing industry. This is crucial for developing nations because it reflects the long-term investment strategy of investors. Moreover, they bring advanced technologies and techniques to Vietnam and train workers for their production facilities. You can see that Japanese investors produce a wide range of products from household utensils like fridge and washing machines to industrial products such as automobiles.
Currently, most Japanese companies in Vietnam import components from other countries to assemble in Vietnam. I think this is not very attractive. Japanese investors like Toyota and Canon are building suppliers of components in Vietnam. This is the very important investment item for the Vietnamese industry to develop.
Another tendency is that Japanese investors are keen on real estate projects such as hotels and shopping malls. For example, behind the National Convention Centre in Hanoi, Hanoi City is planning to build a 500-room hotel, the largest hotel in Hanoi so far with Japanese investment.
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