Vietnam Business Forum had an interview with Mr Morita Nguyen, Director of INAX Representative Office in Vietnam, about Vietnam’s prospects after the WTO.
What do you think about the investment situation of Japanese companies in Vietnam in recent years, especially the changes after the recent visit of Vietnamese Prime Minister Nguyen Tan Dung to Japan?
Currently, Japan has more than 600 investment projects with a combined registered capital of US$6.5 billion in Vietnam, mainly in the industrial sector with US$5.5 billion. After the Vietnamese Prime Minister’s visit to Japan last month, I think the investment inflow from Japanese companies will increase because they believe in Vietnam’s determinations in resolving negative troubles and helping business to stabilise business and production. For example, previously, rarely had any clear activity toward counterfeited Inax products but now economic police force can raid any suspicious units. This makes Japanese companies believe in prosperity in investment in Vietnam.
Do you think this is an essential activity for the WTO integration?
I think so because the intellectual property is the top concerns of all countries. Hence, this is crucial for Vietnam when it joins the WTO. Vietnam proves its clear viewpoints in issuing a common investment law, which provides no discriminations for domestic and foreign countries. After the WTO admission, Vietnam must adjust its legal documents to match the WTO regulations.
How do you assess about the urban planning of Vietnam and is this currently an attractive investment field in Vietnam?
In my opinion, this is a very attractive investment field because the living standards of the Vietnamese people are considerably improved while the living conditions have not much improved. Hence, the demand for better living conditions will rise sharply. However, Vietnam has no standardised construction field. In Japan, the investment for building apartments for low-income earners is very low. These apartments only have 4-5 storeys and have no lift to minimise expenditures for the poor. Vietnam should standardise apartments for high, medium and low-income earners. For example, it is necessary to have norms for houses: the living area or bathroom areas, etc. Thus, it will be much easier for investors to build houses. In short, to outline urban plan, we should standardise all related matters.
From the Japanese experience, which solutions should Vietnam apply to improve its inconsistent urban planning and poor infrastructure conditions?
The most important infrastructure items are water supply, water drainage and irrigation systems. Then, when a new urban zone is established, the most important items are school, hospital, market and transport means. In the Vietnamese culture, a residential area always has public facilities such as communal house and cultural house where happy and unhappy events take place. So does an urban zone. We must look through every matter and services essential for daily life. Such a planning and urbanisation will ensure the livelihood of the people.
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