The forum, held by the Viet Nam Chamber of Commerce and Investment (VCCI), aimed at strengthening the co-operation between the Government and foreign businesses in upgrading Viet Nam's business environment.

Chairman of the UK business association in Viet Nam Patrick J Regis called for establishment of a "one-door" entity to speed up administrative procedures for foreign investors at the meeting.

He also wanted an intermediary to be established by the Government with the ability to provide foreign businesses with consultancy services concerning administrative formalities, and to act as a clearing-house for concerns from the foreign business community.

Meanwhile, vice chairman of the South Korea business association in Viet Nam Kim Ho Kyun said that despite the ongoing global economic slump, South Korea businesses still considered Viet Nam as a good investment destination.

According to a survey administered by the association, as many as 48 per cent of South Korean firms operating in Viet Nam had plans to expand their business here, 45 per cent wanted to continue with their current operation, only 4-5 per cent wanted to scale down production and 2 per cent wanted to relocate to other countries.

Kim pointed out that unclear legal documents and overlapping administrative procedures were just a couple of the reasons a small number of South Korean firms want to leave the country.

Chairman of the Belgium and Luxembourg businesses association in Viet Nam Harry Beinaert said that besides problems relating to finance and infrastructure, the lack of a skilled labour force was another impediment for foreign investors.

This was the first time the VCCI collected opinions and concerns from the foreign business community, said VCCI's chairman Vu Tien Loc, adding that he would like to hold similar meetings with more frequency.

According to the Ministry of Planning and Investment, foreign direct investment to Viet Nam declined year-on-year 17 per cent to US$6.36 billion in the first four months of 2009.

Foreign investors with projects in Viet Nam registered to increase their capital by $3.87 billion in the period under review.

US firms were the biggest investors in Viet Nam during this time period, investing $3.8 billion, which included $1 million for two new projects.

The second and third largest foreign investors were South Korea with $969 million, and Hong Kong with $531 million.

The service sector attracted the lions' share of the FDI, worth $5.95 billion, which includes real estate investment.

Early last month, the Government ordered ministries and other state agencies to take six measures to lure more FDI during the global economic crisis.

The measures included a review of all policies for attracting FDI, announcement of the Government's investment programmes and plans for developing infrastructure by 2020, among others.

Source: VietNamNet/Viet Nam News