Scenery of the Conference
Mr. Do Nhat Hoang – Director of Foreign Investment Agency under the Vietnamese Ministry of Planning and Investment is delivering his speech
Mr. Tran Van Nam – Vice chairman of Provincial People’s Committee is delivering the opening speech at the conference
On December 27 in Binh Duong city, Binh Duong province hosted the experience exchange conference on investment promotion Mr. Doo Nhat Hoang, Director of Foreign Investment Agency under the Ministry of Planning and Investment and ten investment promotion staffs from Vietnamese representative agencies in Germany, France, South Korea, Japan, Taiwan, Saudi Arabia, Sanfrancisco-America, Washington DC –America (US), Singapore, staff and specialists of Foreign Investment Agency, Ministry of Planning and Investment participated in the meeting to share their experiences.
Mr. Tran Van Nam-Vice chairman of People’s Committee of Binh Duong province, leaders of Department of Planning and Investment, Department of Foreign Affairs, Department of Industry and Trade, Project Management Unit of Binh Duong Industrial Parks, VSIP Industrial Park, Becamex IDC and representatives of Department of Planning and Investment, Investment Promotion Center, Industrial Park Management Unit, Processing Zone,…from 20 provinces and Southern cities also participated in the conference.
It was judged that the Foreign Investment Agency that the economic situation of foreign investors in Vietnam such as Taiwan, Japan and Korea are forecasted to be optimistic and Vietnam is still selected for their investments. However the good impression on Vietnam is losing in the eyes of investors.
According to Mr. Bui Tong Dinh, Assistant to Director, Investment manger of Vietnamese Culture Economic Office in Taipei shared that economic situations of Taiwan were quite optimistic with growth rate in GDP in 2010 estimated of 10%, the highest rate in the past 11 years. And the good news are that Investment Associations of Taiwan all have high appreciations for investments into Vietnam and consider Vietnam as a good destination for investments; and some famous investors of Taiwan have been present in Vietnam such as Formosa Group, Chinphon, CT&D….
“Most investors say that they will live and die for Vietnam. They continuously expand their operations in Vietnam and attract other enterprises into Vietnam. However, to attract foreign investments, Vietnam is required to create new attractive things and increase the competitiveness in investment” said Mr. Dinh at the conference. Mr. Dinh also said that in two recent years, investors from Taiwan have evaluations that although the Vietnamese economy continues growing, but “the quality should be reconsidered”. They said “Micro management of Vietnam is not yet stable and inflation rate still remains at two numbers. This will have impacts on investment plans of Taiwan enterprises in Vietnam”. Some Taiwan investors also commented about the deficiency of trained workers which causes many difficulties for investors. Mr, Dinh said that advisor of Chinphon Group (Taiwan) considered these weak points have happened popularly in recent two years which made some Taiwan groups had to move their investments into China instead of into Vietnam.
Besides, although for a long time, Taiwan is always the biggest investor into Vietnam, Vietnam is also at the competition with other countries for this position. In June 2010, Taiwan and China signed the economic cooperation agreement. Accordingly, China issued 500 duty free goods for Taiwan and vice versa, Taiwan also exempts duty for from 180-200 goods. This agreement aims at creating trade freedom and favorable conditions for enterprises to invest into China.
Accordingly to Ms. Nguyen Thi Minh Hien, investment counselor of Vietnamese Embassy in Korea said that the relationship between Vietnam and Korea is quiet close, and more than 100,000 Korean people are working and living in Vietnam. “Thus they also understand clearly about weak points of Vietnam, we can not hide these weak points such as power failure and they want to know how Vietnam will solve these problems”
Korean investors also worry about labor sources. Ms, Hien sid that Samsung Group, Korea has invested into Vietnam and called for many other enterprises to support them, however currently Vietnam has not enough human resources for these enterprises. They are willing to pay expenses to train labor, but the labor resources are still not enough.
According to Ms. Hien, general expenditures in Vietnam are cheaper than in China, so the Korean enterprises tend to move their investments from China into Vietnam. However, Korean enterprises normally share verbally difficulties in Vietnam to each other such as power supply and labor resources. This will create considerable challenges to Vietnam when attracting investments from Korea.
Director of Foreign Investment Agency, Mr, Do Trong Nhat called provinces/cities to cooperate with Ministry of Planning and Investment to provide particular supports to the investors, otherwise foreign investors will “run away”. Mr. Hoang said a leader of Nokia said he wished to invest in Vietnam but he became undecided after knowing that current regulations of Vietnam gave no tax preferences to mobile phone production enterprises.
In the morning of the same day, investment promotion staffs of Vietnamese Representative offices in foreign countries had the meeting to understand about existing situations at office of Becamex IDC – the enterprises is highly appreciated in industrial infrastructure investment and good and outstanding solutions in promoting and calling for foreign investments.
Investment Promotion staffs of Vietnamese Representative offices in foreign countries are working at office of Becamex IDC