15:44 | 16/01/2016 Investment
(VEN) - Vietnam Economic News's reporter interviewed several leaders of foreign organizations and associations to listen to their thoughts of the economic growth and investment environment in Vietnam.
Jens Ruebbert, President of the German Business Association in Vietnam
Japanese businesses highly appreciate the investment environment in Vietnam
A JETRO survey on the operations of Japanese businesses in Vietnam showed that 66 percent were considering the expansion of operations in the future - a high percentage compared with other countries. Obviously, Vietnam continues to attract Japanese investors.
Vietnam attracts investors because it has quality human resources, and the cost of investment in Vietnam, while having increased, still remains lower compared with other countries in the region. To attract more foreign investors with modern technologies and higher capital, however, Vietnam needs to promote institutional transparency, improve the legal system, and accelerate the reform of tax and customs procedures. In addition, it needs to apply industrial development policies that provide greater support for small and medium-sized enterprises (SMEs). In Japan, SMEs play a very important role in supplying components for large businesses. When they invest in Vietnam, Japanese businesses want to buy Vietnamese materials and are willing to transfer their technologies, but Vietnamese companies fail to meet their demand due to limited financial capacity or weak management capability. If this situation continues, Japanese businesses will hesitate to increase their investments in Vietnam, thereby restricting the development of Vietnamese support industries.
Park Noh Wan, Consul General of the Republic of Korea (RoK) in Ho Chi Minh City:
Maintaining the RoK’s position as the number-one foreign investor in Vietnam
The Vietnamese economy grew on a stable basis in 2015 and this growth is forecast to be maintained in the future. Last year the Vietnamese government promoted administrative reforms in all areas; the RoK-Vietnam Free Trade Agreement was ratified and took effect; negotiations on the Trans-Pacific Partnership ended - these factors had a positive impact on the attraction of foreign investment into Vietnam, especially from the RoK.
In 2016, foreign investors and Korean investors in particular will increase their presence in Vietnam. The RoK expects to maintain its position as the number-one foreign investor in the country. By the end of 2015, Korean investment in Vietnam totaled over US$44 billion.
The RoK Consulate General in Ho Chi Minh City has provided Korean businesses with consultancy to help them overcome difficulties when investing in Vietnam. Korean businesses come here not only to seek profits but also to contribute to Vietnam’s long-term, sustainable socioeconomic development.
Jens Ruebbert, President of the German Business Association in Vietnam (GBA):
Increasing investment in Vietnam
The Vietnamese economy has grown on a stable basis compared with other Asian economies. Vietnam exports a persity of products. In addition to traditional products such as textiles and garments, crude oil, and seafood, Vietnam has exported hi-tech products of higher added value such as mobile phones and computers.
GBA has provided German businesses with useful information and created favorable conditions for them to operate in Vietnam. We have paid special attention to further strengthening bilateral relations and increasing trade between Germany and Vietnam. Focusing on human and financial resources, we expect to increase the presence of German businesses in Vietnam in the time to come.