Regional Co-operation Increases Investment Efficiency

3:26:31 PM | 7/8/2005

In the past year, all localities called for investments but failed to attain desired goals. A joint effort is being made in 2005 to increase investment efficiency.

Expensive conference: low efficiency

According to some companies organising conferences in Ho Chi Minh City, a conference with 150-200 participants costs at least VND100 million but often attains poor results and receives no project support for a long time. Many localities have sent business delegations abroad to seek foreign investment but without adequate preparation the mission turned out to be a tourist tour.

No doubt, conferences and business missions were to attract investment, but with high frequencies and of the same nature, they were less productive. Moreover, some provinces have even offered preferential treatment surpassing the limits set by the State causing inconsistency and adverse affect on the investment environment.

Regional co-operation boosts investment

In 2004, An Giang was the first province to develop a new approach. Ms. Phan Thi Thuy Truyen, Head of Trade, Tourism and Investment Centre, said that the province initiated the co-operation with neighbouring provinces ensuring adequate supply of materials then called for investment in processing industries. The regional co-operation has facilitated the investment that An Giang cannot get it alone.

Mr Nguyen Anh Tuan, Deputy Head of Foreign Investment Department (MPI), pointed out that regional co-operation should focus on local potentials, natural resources and infrastructure and MPI will ensure the best planning avoiding overlapping projects. Currently, the Southern Foreign Investment Centre (SFIC) is revising the investment planning in the Mekong Delta region. The investment list will provide most feasible projects in certain areas. SFIC will also develop networking with the provinces to facilitate foreign partners in their investment. Mr. Takashi Nakano, Jetro representative in Ho Chi Minh city said that although 69.4 per cent of Japanese companies are committed to expanding their businesses in Vietnam (the highest record in ASEAN), Vietnam should refrain from sudden changes in investment policy and administrative formalities.

Mr Tuan added that the localities should make joint efforts in attracting investment, reducing costs, increasing efficiency and facilitating investors. It is expected that the new approach will start producing good results in 2005.