08:05 | 09/04/2014 Economy
(VEN) - Hanoi would provide the best conditions for Japanese businesses, Hanoi People’s Committee Chairman Nguyen The Thao told a conference to promote Japanese investment and dialogue with Japanese businesses which was held at the end of this March in Hanoi.
Canon, a Japanese multinational corporation, has reaped success in Hanoi
With more than 2,700 projects and total investment capital of almost US$22 billion of 63 countries and territories, foreign direct investment (FDI) has become an important part of the city’s economic structure. Of these, Japan led in terms of project number and investment capital.
Japan currently has 520 investment projects with capital of more than US$4.6 billion in Hanoi accounting for 22 percent of total capital, 74 percent of total revenues and 61.3 percent of total state budget revenues from the FDI sector in the city. Japanese projects have created more than 130,000 jobs accounting for 75 percent of total FDI employment. Japanese investors have worked seriously and effectively and closely followed Vietnamese laws.
Apart from FDI, Japan is currently the largest official development assistance (ODA) provider for Hanoi pouring US$2.9 billion into 23 projects and accounting for 58 percent of the city’s total ODA capital. Japanese ODA has helped the city develop prioritized areas such as infrastructure, production, technology transfer and human resources.
Hanoi People’s Committee Chairman Nguyen The Thao said, “Your success is ours. Hanoi’s authorities committed to build an open, transparent investment environment which adapts to the process of international integration, and to provide the most favorable conditions for Japanese businesses to succeed and develop in a sustainable and long term manner in Hanoi.”
The opinions of Japanese businesses collected by the Hanoi Statistical Office revealed that Hanoi’s legal system was incomplete, non-transparent, overlapping and questionable, while labor costs had increased and there was a lack of skilled workers. Japanese investors also said that procedures related to customs, migration, tax and fees, and management of foreign temporary residents and business seals were troublesome and complicated. This explained why Hanoi had not reached its target to attract Japanese investment in high technology, source technology, support industries, infrastructure and technology transfer.
Hanoi realized that one of key solutions to develop its economy was to boost foreign investment focusing on Japan. The city asked related agencies to develop a project to attract Japanese FDI during the period from 2013-2015 by prioritizing high-added-value, modern-technology and environmentally-friendly projects (particularly in information technology, electronics and telecommunications), agricultural biotechnology, infrastructure development, high-quality human resources training, research and development, modern services, large-size projects and competitive products.
Nguyen The Thao said that the city would continue amending its mechanisms and policies to further attract Japanese investment and make the most of their strength. It would also reform its administration, build an open and favorable investment and business environment for foreign investors including Japanese businesses, build trust and enhance relations between investors and state authorities, promote investment, increase the investor’s ability to lease land for production, help them employ people, build infrastructure outside projects and provide power, water and information technology facilities for investors./.