There have been many monumental workshops organised in order to attract FDI into the Mekong Delta, but no real change has been made. Thus, the area has to be hurry to act based on specific strategy and clear and practical objectives.
The Mekong Delta is an important economic area of not only Vietnam but also the region and the world. This area is the field to produce rice and other supply of food items globally. Ho Chi Minh City and the Mekong Delta are also seen as the centre to connect ASEAN region towards ASEAN Economic Community in 2015. The government is always interested in investing in infrastructure works aimed at boosting the economic growth in the Mekong Delta. So far in the region, more important infrastructure works such as Can Tho International Airport and Phu Quoc airport which have been completed; the Highway connecting Ho Chi Minh City and Mekong Delta has finished the first phase; the seaport system which is being invested, and other irrigation system and thermal power plants, nitrogen gas power plants which are being invested billion of dollars.
The government is creating the best conditions for infrastructure projects, including BOT, BT models in areas such as sea port, roadway, waterway, renewable energy. The business environment of the Mekong Delta is also improved. The Provincial Competitiveness Index (PCI) scores of many provinces ranked top in 2013 under the review of Vietnam Chamber of Commerce and Industry (VCCI). The region's GDP increased by over 9 percent with total imports and exports reached nearly US$20 billion.
However, VCCI-Can Tho Director Vo Hung Dung said until now, the presence of FDI in the region is still modest compared to the potential of area due to so many difficulties. In the period of 2011-2013, there were FDI 271 projects in the region with US$2.3 billion, accounting for 8 percent of the country, concentrated in provinces near Ho Chi Minh city like Tien Giang, Long An, Ben Tre, Kien Giang and Can Tho city. Therefore, the Mekong Delta should redefine difficulties to resolve in attracting FDI. Furthermore, according to Dr Doan Duy Khuong, VCCI Vice President, in the context towards sustainable socio-economic development, as well as seizing opportunities and solving challenges in a converted area, the Mekong Delta needs to develop strategies to further enhance the competitiveness in attracting FDI. This strategy is necessary because when Vietnam joins the TPP, Vietnam-EU FTA and AEC etc, the competitiveness in area would be great.
At the conference "Introduction investment environment in Mekong Delta" on May 22nd in Ho Chi Minh City, many FDI enterprises have raised barriers to the FDI in the region. Hirifumi Kishi, General Manager of Sapporo Vietnam Co., Ltd. said, the legal systems of Vietnam is incomplete and opaque, leading to misunderstanding and not synchronously applying in the local authorities, or leading to abrupt changes that make businesses unable to adapt. Due to the small number of FDI enterprises in the area, the knowledge of the authorities about laws and management experience is limited so when the time to resolve administrative procedures is slow, causing difficulties to business operation. In industrial zones, home to many FDI enterprises, infrastructure and public services are limited and lack of uniformity. The development of supporting industries and production of raw materials have not been given due attention so the utilization rate of materials from FDI enterprises is still low which can not help FDI enterprises reduce production costs.
Mr Yasujumi Hirotaka, Jetro Chief Executive in Ho Chi Minh City, said many Japanese FDI enterprises complained about cumbersome administrative procedures and long implementation time. Most of them expect localities to expedite the implementation of OSS to abolish unnecessary papers. Mr Nguyen Thanh Hoang, CFO of De Heus Vietnam also said that the government needed to innovate bridge and road system, infrastructure and support farmers in interest rates, loan limits and reduce multi-level purchasing system. The region also needed a flexible credit system, with interest rate of 1-3 percent to encourage investment.
To attract more FDI, Yasujumi Hirotaka said pressing issues for the region at the moment was the region should be in a hurry to act based on a specific strategy and clear objectives. Investors are pragmatic, so they would be interested in province or an area where provincial leaders have practical and effective actions. According to Mr Yasujumi Hirotaka, regional leaders need to understand the needs of investors, pointing out the advantages of the most prominent local investment; at the same time uniting provinces into a unified factor to act effectively.
In addition, regional leaders should also catch up investment shifting trends in the world to improve investment environment and have a proper strategy to seize opportunities. The region should not be subjective and has to listen to voices and aspirations from FDI enterprises to actually become attractive destinations to investors.
As for Japanese investors, the Consulate General of Japan in Ho Chi Minh City Nakajima Satoshi committed that the Embassy of Japan will strengthen links with Vietnam and the Mekong Delta provinces, increasing the exchange of information closely to propaganda about the attractiveness of investment environment as well as traditional and diversified cultures to not only enterprises but also the Japanese people.
Le Phuong
Vietnamese
