Vietnam will attract more foreign direct investment (FDI) than Thailand in the next 10 years, noted Japanese Ambassador to Vietnam Hattori after the meeting with Vietnamese Premier Nguyen Tan Dung on July 11.
Vietnam has made incredible improvements in the investment environment over the 2003-2005 period. "Foreign investment into Vietnam doubled and Japan's investment alone tripled, following the implementation of the Joint Committee of Vietnam-Japan Joint Initiative (VJJI) since April 2003," Mr. Hattori said.
In the first quarter this year, Vietnam lured 215 projects with total registered capital of US$1.6 billion while the figures of Thailand were 200 and US$2 billion, respectively.
Japan now has 600 projects in Vietnam with a registered capital of over $6.5 billion, ranking just behind Taiwan and Singapore. Japan's direct investment into Vietnam increased from $300 million in 2003 to $840 million in 2005.
Analysis said Japanese firms are seeking to reduce their business risks in China and spread them in the region. Their choice is Vietnam, a more attractive destination every year.
However, Mr. Hattori stressed that Vietnam needs to further improve its investment environment, solve matters that have recently emerged, such business income tax, strikes in industrial parks.
On the same day, Hattori attended the meeting of the VJJI for second phase.
The action plan for the second phase of the initiative consists of 46 points touching on major issues that include the revisions to the investment law, finance sector and infrastructure in Vietnam.
A 44-point action plan for the Joint Initiative was introduced in December 2003, most of the plan was completed by November 2005 and two countries’ leaders agreed to continue the second phase.
The VJJI was adopted by Japanese Prime Minister Junichiro Koizumi and former Prime Minister Phan Van Khai in April 2003 with the aim of bettering business environment in Viet Nam as well as increasing the country's competitiveness.
The second phase of VJJI was signed on July 11 and will be submitted to prime ministers of the two countries for approval. The second action plan will be implemented from now to the end of 2007.
A survey by the Japan External Trade Organization has praised Vietnam as the most attractive investment destination among ASEAN member countries.
Young People, Labour
Vietnamese
