Solving Difficulty for Japanese Investors

According to Deputy Minister of Planning and Investment Dao Quang Thu, the Ministry conducted a survey and monitored 500 Japanese business practices as well as the difficult problems encountered when doing business in Vietnam. In particular, aspects such as the implementation of the provisions of the Enterprise Law and Investment Law, the application of accountancy policies, labour policies, wages, land and building are researched. Results of the survey will be an important prerequisite for the Ministry of Planning and Investment to evaluate and research to improve the system of policies and laws to solve difficulties for Japanese enterprises.

 

According to the Foreign Investment Agency, by September 20^th 2012, Japan had 758 direct investment projects effective in Vietnam with a total registered capital of US$28.6 billion, ranking 1^st among 96 countries and territories investing in Vietnam. Japanese investment projects distributed across 63 provinces, however focusing in the big cities such as Ho Chi Minh City, Ba Ria - Vung Tau, Hanoi, Dong Nai and Binh Duong.

 

Mr Hirokazu Yamaoka, Chief Representative of the Japan Trade Promotion Organization (Jetro) evaluated that trade and investment relations between Vietnam and Japan have developed based on sustainable political platform. This is shown in the recent growing number of Japanese investors to Vietnam seeking business opportunities. A new addition is that not only big investors, but also small and medium enterprises (SMEs) of Japan also view Vietnam as potential and promising market for long-term investment plans. However, Japan also wants the Vietnamese Government to have more specific plans for reform administrative procedures, laws and regulations on accounting, auditing, taxation and regulations on investment and business to create more favourable conditions for Japanese investors.

In addition, Japanese firms also said that the rapid development of industrial parks in the development orientation of the Vietnamese Government has left many Japanese enterprises facing labour shortage. This led to difficulty in the recruitment of local human resources, and finding trained workers and skilled engineers. Japanese businesses hope the Vietnamese government will build a practical training program at the request of the industry to raise the quality of vocational schools, training programs and technical workers to meet actual needs, focusing on practical skill. In particular, a feasible measure from Japanese business is to establish their training schools in Vietnam. In addition, Japanese companies also expect to have stable power supply, and upgraded information and industrial infrastructure.