This is expressed by Mr Morihito Kosuda, Chairperson of Japan Business Association HCMC (JBAH) in an interview with Vietnam Business Forum. For over 15 years, JBAH has been an important bridge between the Japanese business community and local authorities in Vietnam.
Could you please quote some satisfactory results of JBAH after 15 years of establishment in Vietnam?
JBAH was established in 1994. Over the last 15 years, the number of JBAH’s members has increased noticeable year by year. Now we have 458 members. JBAH’s unique intention is to help and support Japanese Businesses in Vietnam. JBAH is in charge of socio-economic issues of the Japan business community in Vietnam such as getting involved in solving difficulties, contributing to improvement of investment environment. Over the last 15 years, we have been in cooperation with HCMC to organize annual seminars. Especially, the seminar in March 2009 attracted the most Japanese companies not only from HCMC but from Binh Duong, Dong Nai, Ba Ria-Vung Tau provinces. For years, JBAH has gained the trust from leaders of Vietnam. Most difficulties that Japanese companies have faced in Vietnam are solved well. In addition, JBAH has actively participated in charity activities by raising funds for disabled children, hospitals, etc. So far in 2009, we have raised US$ 40,000 for hospitals and disadvantaged children.
What are the most concerned issues of Japanese investors in Vietnam?
Japan has been one of the top investors in Vietnam for the last 10 years. Through some recent seminars co-chaired by JBAH and HCMC People’s Committee, many Japanese investors have given attention to some problems such as tax, customs system, electricity, banking and especially continuous strikes.
In terms of recent strikes, most are illegal. I think that strikes happen anywhere in the world but it must be done legally. Trade unions do not express to submit the workers’ demands to the Board of Directors (BOD). BOD cannot solve the problem without any advance suggestion.
The local authorities are very late in solving the problem when strikes occur. It is too late when workers revolt and it causes harm to the companies.
Moreover, foreign currency is causing difficulty for Japanese exporters and importers in Vietnam due to serious shortage of foreign currency.
It seems that Vietnam is not attractive any more to Japanese investors?
It is not so. I affirm that Japanese investors will continue to come to Vietnam in the near future.
However, much more needs to be addressed soon. Remember that low labour cost is not an advantage of Vietnam in comparison to 10 years ago. Remember that friendly investment environment is important but some other factors should be addressed. It is so difficult for Vietnam to attract new investment in the future, especially, when investors who are doing business in Vietnam feel unsatisfied with objective factors such as power shortage, shortage of foreign currency, and unclear taxation system. In addition, I think that more drastic measures should be taken to help investors in site clearance and compensation at construction sites like bridges, roads and ports.
Which sectors do you think the Japanese are interested in investing in?
We are now considering special incentives for enterprises investing in urban areas, new industrial parks and hi-tech projects. What I saw in Vietnam is a misunderstanding of hi-tech concepts. Hi-tech is applied in all aspects of an economy from garment, agriculture, to industrial products, not just computer or software.
In addition, we are doing research in investing in various fields including power plants, supporting industries, wastewater treatment projects, etc.
Reported by Duy Khang
Vietnamese
