On the sidelines of the Vietnam Business Forum, Minister of Planning and Investment Vo Hong Phuc said that Vietnam’s investment environment has never been so good as this year. Entrepreneurs are not as concerned as in the past.

Certain problems are always raised at the Vietnam Business Forum. Is it true that there are no improvements and investors are not satisfied?

It is not that investors are not satisfied, but there are always problems.  Vietnam is continuously improving its business environment. Investors may want speedy improvements but should and usually do only expect a gradual rise.

Infrastructure, land, etc. are issues that we are working on solving and each year we do a little better, but problems can’t be solved immediately. There is much to do.

An urgent issue this year is the quality of human resources and the scarcity of qualified labour in Vietnam. What are your comments?

These are this year’s biggest concerns but are not new issues. The Prime Minister’s report to the National Assembly points out three major concerns that must be addressed to improve Vietnam’s investment environment, human resources was one.

Human resources in Vietnam are currently not of high quality. Trained workers currently account for just 30% of the workforce. A serious shortage exists of qualified engineers and labourers capable of developing hi-tech infrastructure. Businesses are correct in highlighting this issue and the Government has realized it. Part of the development process is creating and training a skilled and capable labour force.

The second problem is infrastructure. Both investors and the Government know it. However, it can’t be solved overnight. We need to have huge capital and time for preparation. As such, both the Government’s action plan and Prime Minister Dung’s reports to the National Assembly prioritize infrastructure development to ensure successful future development.

The third issue is land. This is a big one. The real estate market is inflated. Land prices are very high. The Government is seeking measures to ensure sufficient land at stable prices for investors by building economic and industrial zones.

The fourth issue is administrative formalities, which the Government has been spending a great deal of time on. It has committed to decentralization, for example: business registration and investment licensing. Other formalities are being simplified as well, for example: construction licensing and tax payment deadlines, etc.

Investors want to participate in infrastructure projects but it seems to be so difficult for them.

Investors are very interested in infrastructure projects but capital retrieving takes a long time; the level of capital required means that not all investors will be capable of participating.

For projects with shorter capital return expectations, we will call for private investors to participate. For projects with more challenging capital needs, the Government will do itself.

2007 is the best investment environment year so far. Investors haven’t complained much. Vietnam’s competitiveness index has risen in many domestic and international surveys. I think this year investors and entrepreneurs have less to complain to the Government about than previous years.

Source: VietnamNet.