4:29:16 PM | 31/10/2008
Following the success of the “Vietnam Week 2008 in Japan” that took place in three Japan’s major cities of Tokyo, Osaka and Nagoya from September 16 to 21, 2008, the event is organised by the Vietnamese Embassy in Japan and the Japan-Vietnam Friendship Parliamentarians League on the occasion of 35th anniversary of Vietnam-Japan diplomatic relations establishment, VBF had a forum of 4 Japan and Vietnam's businesses:
Le Hai Doan - Director of SCS-VBP Vietnam Co., Ltd
SCS-VBP Vietnam Co., Ltd (VBP Corp) is one of several companies providing professional consulting services for Japanese enterprises in such activities as business registration, capital increase, career change, tax consultation, and human resource. When doing my job, I once heard that many Japanese partners complained about some problems in Vietnam, for example tax and tax refund. Many enterprises said income tax in Vietnam was complicated. Some people already paid tax in Japan but were unable to get tax reduction or exempt in Vietnam. It is very difficult in administrative procedure and time consuming to get refund and avoid double income tax, so most of them pay tax for the sake of peace.
SCS-VBP Vietnam Co., Ltd (VBP Corp) is one of several companies providing professional consulting services for Japanese enterprises in such activities as business registration, capital increase, career change, tax consultation, and human resource. When doing my job, I once heard that many Japanese partners complained about some problems in Vietnam, for example tax and tax refund. Many enterprises said income tax in Vietnam was complicated. Some people already paid tax in Japan but were unable to get tax reduction or exempt in Vietnam. It is very difficult in administrative procedure and time consuming to get refund and avoid double income tax, so most of them pay tax for the sake of peace.
Besides, the relationship between workers and the bosses is very complex. Many cases of asking for pay rise have led to strikes like in Thang Long Industrial Park in the past time. Therefore, Japanese partners often consult SCS-VBP to study which salary level is reasonable to pay the workers. Furthermore, costs in Vietnam are on the rise, of which office rent is the highest in the region.
However, the Japanese is very prestigious in doing business. When they put forwards their problems and ask for our consultation, they are willing to accept and change quickly if the high costs or tax rise are conformable to the general situation. In 2008, there is a company that raises pay to its staff twice and is willing to increase transportation freight, office rental when oil and property price goes up. Moreover, the law on individual income tax and the system of Investment Law, Corporate Law in Vietnam are being perfected to improve the business environment. Thus, I believe that Japanese enterprises will take Vietnam as their prestigious destination of investment and trade in the near future.
Mr Do Van Dung, General Director of COCOMO Pan Pacific Environment Corporation
Businesses of the two countries need to join hands and exchange information
Our company has established business ties with Japanese leading groups for more than 10 years. At present, we have three big Japanese business partners. Cocomo is the distribution agent for Toshiba’s electric transmission and distribution products in Vietnam, the agent for Naruma Construction Corp’s construction machinery, and the collaborator with SunWard Group in import and export. We also have cooperation with Japan Energy Research Centre (JERC) on studying waste treatment and environment protection devices.
Arguably, Japanese companies are very reliable in business dealings. Most of them regard their partners as the fellow friends and they want to cooperate for joint development and do not want to become direct rivals. However, they have their own criteria to choose the so-called fellow friends, normally unwritten laws.
During our cooperation with Japanese companies, I find that they have a high demand for professionalism in negotiation process and contract negotiation. A very few Vietnamese companies satisfy this requirement. Japan is a very big and potential market; therefore, Vietnamese companies need to join hands together to exchange information and seek business opportunities. Reportedly, the Vietnam - Japan Business Club under the Vietnam - Japan Friendship Association is scheduled to make a debut in November 2008. I think Vietnamese enterprises can contact this club to increase contact and exchange with Japanese firms if they want to establish business ties.
Mr Masami Morooka, President of Morooka Co., Ltd
Hopefully, Vietnam will quickly complete tariff for us to start operations in Vietnam soon
In 2008, Morooka Co., Ltd celebrated its 50th anniversary. During the past four decades, Morooka has successfully established a position as the leading manufacturer of rubber crawlers which are widely used by the construction industry worldwide.
Starting in October 2000, Morooka launched a business diversification programme to enter the farm machinery and environmental markets, which will serve, together with the construction equipment market.
In September 2008, we return Vietnam to attend the International Trade Fair for Construction and Building – Machinery, Equipment, Materials, Vehicles, Technology & Services (Con-build Vietnam 2008). We have surveyed the Vietnamese market for two years, a long enough time. However, our products, the crawlers, are not included in Vietnamese tariff system. Our crawlers can easy move in mountainous and slushy terrain in Vietnam thanks to its wheeling system. I hope the Vietnamese government will quickly supplement our products on its tariff list, improve administrative procedures and better investment environment for us to make presence in the country.
Mr Mitsushige Ueda – General Manager International Operation Division of Hasegawa Kogyo Co., Ltd
Japanese companies have too little information about the Vietnamese market
We outweigh the cooperation with Vietnamese enterprises in comparison with regional countries. We already led business in the Chinese market but were not very successful. Therefore, we moved to Vietnam. However, Japanese companies have too little information about the Vietnamese market when they want to seek partners. We have searched information in many Vietnamese organs and ministries, the Japanese Chamber of Commerce in Vietnam, and the Vietnam Chamber of Commerce and Industry (VCCI) but we hardly found out suitable partners. I think Vietnam needs to organise a professional trade promotion programme to provide sufficient investment consultancy, legal advice or information for Japanese companies to quicken their presence in Vietnam.
Another barrier is the ineffective intellectual property in Vietnam. Products of Japanese companies are very creative and high-quality although they are more expensive than the regional average. Although the company has registered the trademark and intellectual property for its products in Japan and several markets, our products are copycatted with up to 70 per cent of fake components. Therefore, disqualified products have a half price. If Vietnamese intellectual property authorities cannot protect the legitimate rights and interests of foreign companies and their products, Japanese companies like us will hardly do business here.
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