Vietnam, Japan plan next stage of investment initiative

The seventh phase of the Vietnam-Japan Joint Initiative will be focused on macro issues to help Vietnam improve its investment environment

Representatives of the Ministry of Planning and Investment (MPI), the Japanese Embassy in Vietnam and the Japan-Vietnam Economic Committee recognized the joint initiative’s positive impacts on the investment environment in Vietnam over the past 14 years and discussed ideas for the next phase.

Improving productivity

The Japanese ambassador to Vietnam, Kunio Umeda, proposed that in the implementation of Phase VII, the Vietnamese government prioritize improving productivity and ensuring a transparent judicial sector. He also urged the government to set out a long-term policy for each of its sectors, for example, the automobile industry.

The sixth phase of the Vietnam-Japan Joint Initiative began in August 2016 and ends in December 2017. According to the MPI, relevant agencies of the two countries held 28 policy dialogues, and policy recommendations by the Japanese side were reported to relevant authorities for consideration in the process of improving and enforcing laws and policies.

According to the Joint Committee of the Vietnam-Japan Joint Initiative, 26 out of 32 actions recommended for the sixth phase have been developed, of which 19 actions have been implemented on schedule in fields such as support for small and medium enterprises, logistics and transportation services, and labor; seven actions that have been developed but remain behind schedule pertain to regulations on foreign investment in Vietnam under the Law on Investment, Enterprise Law, Land Law and other laws related to investment, trade and pharmaceutical distribution.

Slower disbursement

According to the MPI, one of the major reasons for the delays is that the Japanese side needs more time to collect and provide information and materials for Vietnamese authorities. Some actions related to improving legal documents (decrees and laws) and policies also need further consideration before implementation.

Six actions that remain to be developed are related to salary and pharmaceutical distribution. These actions will be discussed further, Minister of Planning and Investment Nguyen Chi Dung said.

Hideo Ichikawa, Chairman of the Japan-Vietnam Economic Committee, said the joint initiative has helped Vietnam improve its investment environment, enhance the competitiveness of the economy and accelerate its integration into the global economy.

Minister Nguyen Chi Dung said the joint initiative had contributed significantly to promoting new Japanese investment projects in Vietnam and expanding existing ones. In his opinion, the joint initiative also offers an effective information channel helping Vietnamese authorities improve and enforce policies and mechanisms to attract more foreign investment, in general, and Japanese investment, in particular.

The Vietnam-Japan Joint Initiative, launched in 2003, is designed to help Vietnam improve its investment environment by conducting regular policy dialogues.