Tin mới
What Do FDI Companies Really Want? (14/4)
14/04/2011 - 10 Lượt xem
Dr. Edmund Malesky said that Vietnam often portrayed itself as a country with a young population, cheap labor force, high economic growth for many consecutive years and stable politics. However, one wonders if these are the advantages that have caught the interest of foreign investors.
A survey of 1,155 FDI businesses of 47 countries and territories (accounting for 20 percent of all FDI businesses in Vietnam) shows that 10 major factors for FDI businesses to choose to invest in Vietnam are labor costs, tax preferences, land, stable politics, labor quality, material costs, intermediary services, consumer purchasing power, the availability of materials and intermediary services, the scale of the domestic market, the availability of industrial zones, and macro economy stability.
However, several factors which are recognized as Vietnam's advantages sometimes left foreign investors worried. The most visible factor is labor. Just 23 percent of employees at FDI enterprises hold university/college degrees, and 27 percent were untrained before employment. This is why 40 percent of FDI businesses said that they have to pay a significant amount of money for on-the-spot training. However, after training only 65 percent of trainees continued to work for the company they had received the training from. This has worried FDI business owners and made 67 percent of FDI businesses in Vietnam choose to invest in areas with low added value like textiles and garments and food processing.
To attract FDI in high-tech, high-added-value industries Vietnam needs to focus more on the quality of labor, said Dr. Edmund Malesky.
In addition, the research group said that foreign investors in Vietnam also expressed their anxieties about problems such as the cost of market access and customs clearance procedures. They said that it usually took too long for investors to obtain a business license. In consideration of this, it is important to simplify administrative formalities to create a good investment environment for FDI businesses.
The survey also indicates that 88 percent of foreign investors chose to invest in provinces/cities without much care for investment preferences. This means that local preferential policies are unlikely to attract foreign investors in the near future. Actually, FDI businesses pay more attention to property ownership, contract-related rights, labor quality and infrastructure in Vietnam.
To increase FDI in the short run, FDI businesses thought that apart from investment incentives, Vietnam needs to focus more on promotion information and restructuring. In order to draw investment in high technology and create high added values the country particularly needs to improve school education, vocational training, infrastructure and procedures to reduce time and expenses for businesses./.
Source: VEN
Source: VEN
