The ASEAN Capitals Business Forum

ASEAN Capitals Business Forum (ACBF) took place in two days from October 15 and 16 with a lot of important discussion. This was a chance for statemen and enterprises in Asean community to evaluate and consider challenges as well as competitive advantages in order to attract more investment in integration period.

 

Especially, all representatives agreed that Asean is on the path of trade liberalisation strongly towards complete trade liberalisation by 2020. This is the most active region in the world, maintaining high economic growth and having a lot of potentials and prospects for further development. Among countries, Vietnam is a country which always combines the national benefits and liabilities with the regional interest and development, combining the process of economic growth with the process of international cooperation and integration.

 

Vietnam's and Asean's efforts in promoting trade and investment relation are described the most effectively through impressing numbers. Trade turnover between Vietnam and Asean in 2006 was US$19 billion, accounting for 47 per cent of the total trade output between Vietnam and other countries in the world. As of May this year, there had been 1,179 investment projects licensed in Vietnam with the total amount of US$16 billion, making up 26 per cent. On the contrary, Vietnamese enterprises have also had 120 investment projects being implemented in Asean member countries with the total amount of US$700 million.

 

"Asean pledges to boost economic integration. Asean also desires to create advantageous conditions to attract more investors to Asean member countries. In the forum, we discuss how to develop business but still keep the existing values for the future. The last thing we want to talk about is that Asian people believe that prosperity is the most important thing", Ms Laura Q.Del Rosaio, Philippones Ambassador said.

 

However, Mr Phan Huu Thang- Head of the Department of Foreign Investment under the Ministry of Planning and Investment, said that the above results are not corresponding to potentials. Hanoi Capital alone, a place of attracting foreign investment in general, and investment from Asean countries in particular, has outstanding strengths such as stable security and politics. It is also the national traffic clue with developed infrastructure, high standard laborforce with over 50 per cent of them trained in specific fields, and prior education and training with more than 100 reasearch institutions, 50 universities. Besides, directions and policies are always concerned by Hanoi's leades to detailize with the guideline of "city beside enterprises", especially the "one- door" mechanism. With those above advantages, Hanoi has become an attractive place for many bid investors who are seeking investment each day, according to Mr Trieu Dinh Phuc, director of Hanoi Department of Planning and Investment. However, beside strong points for foreign investment, Mr Phuc emphasised that Hanoi is facing with difficulties in site clearing and traffic jam. In fact, difficulties facing Hanoi are common for local regions nationwide. However, with the target for an average GDP growth of 8-8.5 per cent in the period of 2006-2010, Vietnam need to mobilise investment capital of about US$150 billion, in which foreign investment accounts for 35 per cent (or US$49 billion). On the contrary, Mr Phi Thai Binh, vice chairman of Hanoi confirmed that this is an opportunity for Asean Capitals' enterprises to take part in economic development of Vietnam in general and Hanoi in particular. Mr Le Khac Hiep, chairman of Vincom Joint Stock Company told "Asean's financial market will operate strongly in the future, this is the bid chance but with a lot of challenges." Mr Hiep informed that this is the big chance for business community of the region to introduce themselves and find potential partners.

At present, Vietnam has potentials to grow faster. With the growth of 1.5 per cent in population, Vienam has a young labour force. This will not only create attractive labour force but also an luring consumer market. On the other side, Vietnam is an important part of Asean, an economic sector which is evaluated as the most active in Asia features of culture, languages, regions of Vietnam are similar to countries with developed ones such as Japan, South Korea. It means that Vietnam has advantages in promoting its economy.

 

After Intel invested in building a factory in Vietnam, many investors all over the world have been eyeing this market. Expecially, different from other member countries such as Thailand, Singapore and the Philippines, Vietnam's rapid economic growth is attributed to strong exports of agricultural products, natural resources, textile and seafood to other countries in the world. Over the past 24 years, the development of the market has not stoped. All the above elements have made Vietnamese market more attractive.

I think that ACBF was extremely important not only to Mai Linh but also other enterprises in Asean. Leaders and managers share achievements, failures, and look for business strategy and new investment opportunities together for the prosperity of Asean community. Through that, Vietnam's enterprises will have chances to exchange experiences with others. This is the first time such an event was held in Hanoi, and I believe that in the future, ACBF will be held in Asean countries inturns in capitals in order to study growth of enterprises in the region.