The Vietnam - Japan Joint Initiative Phase 2 has ended successfully since it achieved its primary objective to improve the business environment with a view to strengthening Vietnam's competitiveness. This initiative has played a great and pivotal role in materializing a dramatic increase in Japanese direct investment and FDI in general in Vietnam over the past 1.5 years. In fact, Japanese investment in Vietnam increased tenfold from 2003 to 2006.
Talking to press conference about the results of the "evaluation on the progress of the Vietnam - Japan Joint Initiative" on 9 November 2007 at Daewoo Hotel, Hanoi, Mr. Motoyuki Oka, Chairman of Japan - Vietnam Economic Committee, Nippon - Keidanren said that the success of Vietnam - Japan Joint Initiative Phase 2 were the results of efforts of both Japanese firms those are doing business in Vietnam and the Government of Vietnam.
As for the Japanese side, a number of ODA projects related to Action Plan implementation have been approved and conduced during the past 1.5 years. Furthermore, some other projects requested by the Vietnamese side are being positively considered.
Vietnam, on other hand, has improved its business environment. Of which the most important factor was the change in decision making rule in joint venture companies. The decision now will be made base on the vote of majority of shareholders, Mr. Oka said.
According to Mr Oka, the most attractive factors of Vietnam's economy to foreign investors were the politic stability and the efforts of Vietnamese government to understand the need of investors and improve the business environment by reducing the red tape and developing the economy in general.
Other factors that are also of interests were the large market size of 90 million people. The Vietnamese workers also were considered creative and hard working. Beside, Vietnam lies in the heart of South East Asia, the most dynamic region of the World economy, which would reduce the import and export costs.
However, to maintain its attractiveness, Vietnam needs to improve its infrastructure, develop its supporting industries. Otherwise, they would become the obstacles to economic development.
Mr Vo Hong Phuc, Minister of Planning and Investment, said that the Vietnam - Japan Initiative is the program to facilitate the business environment to all enterprise from all countries. And both sides have agreed to proceed to Phase 3 of the initiative, with a view to strengthening Vietnam's competitiveness and improving its investment environment. Further procedures will be discussed at the working level, and to be confirmed by the end of 2007.
Van Chien
Vietnamese
