A memorandum of understanding on investment cooperation promotion was signed in Hanoi by Vietnamese Ministry of Planning and Investment (MPI) and the Japan Chamber of Commerce and Industry (JCCI). Planning and Investment Minister Bui Quang Vinh affirmed that the binding relationship between Vietnam and Japan is increasingly strengthened and hoped that Japanese small and medium enterprises (SMEs) will boost up long-term investment in Vietnam given the basis of signed document.
The two sides agreed on five selected industries to have focused investment cooperation: Electricity and electronics; food processing; shipbuilding; industrial machinery; and energy. Other industries of interest included apparel and textile; steel; motorcycle and automobile.
JCCI President Tadashi Okamura said the objectives of the working visit are to further tighten the relationship between Vietnam and Japan, and exchange information on investment environment and investment regime in Vietnam. This is of great significance because Vietnam is strongly developing the industry whereas Japan is a developed country with advanced technologies. If the cooperation process is successful, it will contribute greatly to the development of Vietnam. He said that the MoU signing is a commitment of stronger legality and an important condition to promote Japanese companies’ investment in Vietnam.
Nakamura, Deputy CEO of Nippon Corporation, Japan, said that Japanese firms are currently holding lofty expectations on Vietnam. The country has numerous advantages like abundant human resources, and a favourable geographical position with convenient sea and land traffics to facilitate cargo transit and trade exchange for Japanese enterprises with Vietnam and other regional countries.
In addition, Vietnam is planning to build Cai Mep - Thi Vai Port, which is considered the first deep-water port in the region. Japanese businesses hope the project to be completed soon because this will be a new convenient route for freights, a new direct gateway for Vietnamese goods to reach other countries in the region and the world without having to pass the Port of Singapore, which will require more costs.
Legally, Japanese firms also expect Vietnam will discuss with border-sharing countries to apply simple customs clearance mechanism and agree on international tax systems.
Takashi Kashiyama, President of the Chamber of Commerce and Industry in Saku District, said that many JCCI members expressed their wish to invest abroad and they mainly operate in engineering and precision manufacturing. The Vietnamese Government is very much interested in attracting investment in these sectors for Vietnam. And, what Japanese companies are interested in is low-paid labour source. This is actually an advantage to attract Japanese investors to Vietnam.
Speaking of policies on SME, Director of Foreign Investment Agency Do Nhat Hoang said SMEs are mainly operating in supporting industries. Nevertheless, policies for SMEs are not groundbreaking enough to entice investors. Currently, the Government has assigned the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Ministry of Finance and related agencies to work out more attractive SME support policies. Specifically, SMEs will be given priority in corporate income tax, import and export duties and other supports. Capital lending support is under discussion but financial sources for this field must be taken into consideration. But, Vietnam will have a number of tax, land rent and technology transfer support policies among others.
Anh Phuong
Vietnamese
