This remark was made by economists at a seminar entitled “Choices to invest in Viet Nam” held in Ho Chi Minh City on April 8.
 
The seminar stressed that the country’s economic structure, open investment policies and the strong development of financial institutions made it a good place to invest.
 
The year 2008 is a good one for foreign investors to start a business in Viet Nam despite potential risks, said Bradley Lalonde, general director of the BIDV-Vietnam Partners Investment Management JV Company (BVIM).
 
He forecast that some 2,000 firms will list shares on the Viet Nam’s stock market and the market’s capital is likely to rise to US$200 billion within the next five years.
 
Lalonde was optimistic about the Viet Nam’s economy and said that the current high inflation has not had much of a negative impact on the country’s economic growth.
 
Inflation is a global problem, not just a problem for Viet Nam. The country’s growth will be over 7 percent this year, he added.
 
BVIM and other investors, particularly newcomers, are keeping an eye on the government’s move to control inflation, manage the capital market and ensure stability of the investment policies, Lalonde said.
 
These are factors that will have a decisive impact on long-term investment strategies, he stressed.

Viet Nam’s economy has already experienced many changes, said Adam McCarty, an economist of Mekong Economics consultancy. It is now in a period of acceleration and development. The country needs policies for a faster development, particularly policies related to transportation, infrastructure and equitization.
 
Participants also discussed Viet Nam’s advantages after joining the World Trade Organization, especially its new legal framework designed to create more favorable conditions for foreign businesses.
 
Foreign investors should consider long-term factors when they invest in Viet Nam and pay attention to fields such as capital markets, the stock market, tourism, office space, and consumption services, an economist said.
 
Many investors were concerned about strikes in foreign companies, work permits, and the recruitment of foreign labor in Viet Nam.
 
The government has issued a decree aimed to prevent illegal strikes, said Nguyen The Hung, deputy director of the South Foreign Investment Center of the Ministry of Planning and Investment. If workers strike illegally, they will have to pay compensation for any damages they may cause.
 
He said another decree issued on March 25 allows companies to employ as many skilled workers from abroad as they want. Previously, a company could not have a workforce in which the number foreign workers exceeded three percent.

The ministry took this occasion to explain which fields are prioritized for foreign investment, and discuss policies regarding infrastructure, hi-tech industry, and stock market development.

During the two-day seminar, participants discussed real estate investment, financial sources for infrastructure projects, the equitization process, and shared experiences in carrying out projects.
Source: SGGP