14:31 | 07/02/2016 Economy
(VEN) - Vietnam Economic News’ Nguyen Huong spoke to several diplomatic and business representatives about the prospects for the Vietnamese economy this year.
Many large groups across the globe have announced their plans to pour investments into Vietnam
Hiroshi Chishima, Deputy Chief Representative of the Japan External Trade Organization (JETRO) in Vietnam: The Vietnamese market has great potential
Japanese companies highly appreciate the Vietnamese business environment. Vietnam has a large population, including a high percentage of young people, lower labor costs than many countries, abundant natural resources, great tourism potential, and high consumer power. The Vietnamese government has carried out reforms in terms of taxation and customs further facilitating Japanese businesses in Vietnam. Of these, customs reforms have been most effective following the implementation of the Vietnam Automated Cargo Clearance System and Vietnam Customs Information System (VNACCS/VCIS) which has helped reduce customs clearance time and costs. However, there is still a lack of transparent regulations on specific fees and charges, and this problem should be resolved to facilitate foreign businesses, including Japanese companies in Vietnam.
It is expected that medium and small-sized Japanese businesses will invest more in Vietnam in the near future. Due to the attractiveness of the Trans Pacific Partnership (TPP), many Japanese textile and garment businesses which are investing in Bangladesh, Myanmar and other countries, will turn their eyes towards Vietnam.
Jun Dae Joo, Ambassador of the Republic of Korea to Vietnam: The Republic of Korea (RoK) is the largest foreign investor in Vietnam
With more than 4,100 businesses and total investment capital of more than US$40 billion, the RoK is currently the largest foreign investor in the country.
In the context that the Korea-Vietnam Free Trade Agreement which officially took effect on December 20, 2015, the scale and quality of cooperation in economics, trade and investment will progress on a large scale. For this reason, we totally believe that bilateral trade between the two countries will reach US$70 billion by 2020.
In particular, if Vietnamese businesses try harder to make high-quality products and meet Korean consumer demand, the RoK will likely become Vietnam’s largest agricultural and seafood buying market.
Preeti Saran, Indian Ambassador to Vietnam: Vietnam is an attractive destination
Relations between India and Vietnam still have great potential for development in the short-term.
With total registered capital of US$298 million, mostly in manufacturing and mining, India currently has 87 investment projects in Vietnam taking 30th place among the 101 countries and territories investing in the country.
Cooperative opportunities will grow further after the Association of Southeast Asian Nations (ASEAN) Community was established at the end of 2015. Indian companies continued to consider Vietnam as an attractive destination for investment in oil and gas, steel, mining, tea, sugar, and information technology and as a gateway for goods to the rest of Southeast Asia.
I believe that the business communities of the two countries will pay more attention to each other, more actively participate in business workshops, forums, trade fairs and exhibitions to be held in both countries in order to increase opportunities to meet, talk, learn mutual markets, and seek business and investment chances in the coming period.
Hans Jorg Brunerb, Charge d’Affaires of the German Embassy in Vietnam: German companies have perted to Vietnam
Among the European Union members, Germany is Vietnam’s largest trade partner, ranking 16th among countries directly investing in Vietnam with more than 300 companies, which have created jobs and contributed to local economic development.
In the future Germany will promote infrastructure development investment projects in Vietnam, specifically in Ho Chi Minh City which has been highly lauded for dynamic and robust development as the largest economic center in Vietnam.
German projects in Ho Chi Minh City like Metro Route 2 will be launched in the short term and the German House project with total investment of about US$80 million is scheduled for completion by 2017 becoming a new symbol of German-Vietnamese relations and the representative office of German organizations and groups.
I believe that the conclusion of the EU-Vietnam FTA will further intensify economic relations between the two countries and that German companies will pay more attention to the Vietnamese market and shift their investment from China to Vietnam. German investment in the country will continue to increase and play an important role in Vietnam’s development in the future.
Sonklin Ploymee, Director of BOI Unit for Industrial Linkage Development (BUILD) under the Thailand Board of Investment (BOI): Investment attraction is very high
I can say that all Thai businesses are attracted by the investment possibilities in Vietnam, because in the process of ASEAN Community establishment, Vietnam is among countries which have actively attracted investment, promoted trade exchanges within the bloc, and is currently a highlight in terms of long-term export and investment, particularly in the automobile and motorbike sector.
Thailand’s exports to Vietnam have increased progressively each year. Vietnamese support industries are young and need more support from foreign companies, while Thailand has experience in this area and is eagerly seeking new investment opportunities in the Southeast Asian market.
Ten years ago when the Thai industrial sector developed stably, Vietnamese support industries had not yet developed. Now that support industries in Thailand reached the saturation point, they are developing strongly in Vietnam thanks to multiple attractive investment opportunities. For this reason, Thai businesses are turning their eyes to Vietnam.
Mayerfas, Indonesian Ambassador to Vietnam: Many new cooperative opportunities exist
The ASEAN Economic Community (AEC) will become a catalyst for raising economic cooperation among its members and between Vietnam and Indonesia in particular to new heights.
Vietnam is an emerging attractive market in the region that Indonesian companies are looking at. The largest ever group of more than 100 Indonesian businesses flew to Vietnam for a trade fair and an Indonesia-Vietnam Business Forum in December 2015.
In addition, the Indonesian government will implement policies and ample preferences to better facilitate Vietnamese investors in remote provinces.
Potential areas for Vietnamese investors in Indonesia are infrastructure, agriculture, tourism, seaports, mining and sectors which can substitute for imports and use intensive labor.
Dato Azmil Bin Mahamed Zabidi, Malaysian Ambassador to Vietnam: Malaysia is accelerating investment in Vietnam
Relations between Malaysia and Vietnam have developed strongly during the last 42 years since the two countries established diplomatic relations in March 1973. Trade, investment, tourism and other areas have achieved great progress. With 495 projects, Malaysia is one of the top ten investors in Vietnam. More than 330,000 Malaysian tourists visited Vietnam and about 280,000 Vietnamese visited Malaysia in 2015.
Bilateral relations have opened the doors in trade and investment in the two countries and are expected to grow rapidly in the future. To continue promoting investment cooperation, the governments of Malaysia and Vietnam need to make further efforts to increase the opportunities for businesses to meet and boost trade exchange and investment. In particular, the establishment of the AEC is a good opportunity for businesses in the region including Vietnam and Malaysia to strengthen trade and investment ties.