Seeking Cooperation and Removing Obstacles for Japanese Businesses

 

Mr Yoshihisa Maruta represented JBAV to convey recommendations and proposals to VCCI President Loc in a bid to further facilitate Japanese companies to do business in Vietnam.

 

JBAV’s policy recommendations mainly focus on tax mechanism, labour, working time, overtime working, and occupational health and safety laws that the Government uses to regulate Japanese firms as well as foreign companies in Vietnam.

 

Accordingly, JBAV presented detailed recommendations to tax issues like tax-deductible to welfare expenses, VAT-deductible to inputs, and tax-free on capital increase. JBAV recommended completely eliminating tax-inspection allowances, improving working capabilities of tax officers, and reducing customs and tax papers.

 

Regarding employment, JBAV proposed capping base wage increase at the rate of consumer price index (CPI) growth because the current reason for minimum wage rise is unclear. JBAV hoped to see changes in the process of deciding base wage to formulate a more objective process. With respect to foreigner work permits, JBAV proposed using only judicial records for long-term stays.

 

JBAV also put forth some other recommendations, including the obligatory standard application to Japanese schools in Hanoi and Ho Chi Minh City as specified in Joint Circular No. 44, the guaranteed exchange of foreign currencies for large-scale projects, and cooperation requirement for the promotion of Japan-Vietnam joint initiatives.

 

Particularly, JBAV asked Vietnam to build solid industrialisation strategy as well as specific action plan for supporting industry development.

 

Mr Yoshihisa Maruta said that, to attract US$10 billion of direct investment a year from Japan as expected by the Government of Vietnam, Vietnam needs to pay more attention to attracting Japanese parts producers to build their production facilities in Vietnam.

 

"Although Japanese companies are decreasing investment capital in Vietnam this year, their interests in the Vietnamese market are the highest ever. Small and medium parts manufacturers in Vietnam are looking to invest overseas. Although the scale of parts production projects is not big, they play a vital role in the industry because they help resolve what automakers in Vietnam cannot do: They cannot purchase parts in Vietnam but import from other countries. If Vietnamese companies join hands with Vietnamese companies, this issue will be resolved. Then, Vietnamese companies will have the opportunity to acquire experience and advanced technological application from their partners,” he added.

 

He said JBAV has also received many companies interested in this field and exchanged with SMEs about this issue since the beginning of the year.

VCCI President Vu Tien Loc thanked JBAV Chairman Yoshihisa Maruta for expressing JBAV’s recommendations and promised to hand over them to the Prime Minister and the State President for consideration and resolution.

 

He also believed that Japanese carmakers and parts producers will be able to choose strategic partners in Vietnam.