Improving the investment environment (11/3)
11/03/2013 - 13 Lượt xem
According to the survey results on support industry activities in HCMC, Dong Nai and Binh Duong, the rate of enterprises that decided to not invest in their production and business activities reached 16.3 percent. In addition, 44.5 percent of FDI enterprises hesitated to expand production and business activities, showing less confidence in foreign investors when investing in Vietnam's business environment.
The Japan External Trade Organization (JETRO)
recently announced a survey of Japanese businesses operating in Asia
and Oceania. Although Vietnam topped the list of foreign investors,
Japanese enterprises were not satisfied with existing conditions. Only 34.2 percent of Japanese enterprises in Vietnam believed that 2013 would be a better year. In addition, the survey also pointed out that the labor costs in Vietnam now account for 18.3 percent of production costs and the localization rate stands at 27.9 percent, showing the lack of initiative in production and an increase in costs.
Foreign investors acknowledged that Vietnam was politically stable, had a young population, good quality labor force, reasonable wages, less holidays and less prone to natural disasters. Therefore, Vietnam had become an attractive investment destination for
foreign investors. However, difficulties in terms of unclear
preferential policies, imported major spare parts and the high rate of
uncommitted long-term
works are causing major problems in the investment process. In
particular, according to the Vietnam Chamber of Commerce and Industry
(VCCI)'s survey of nearly 8,200 enterprises throughout the country,
87.39 percent of enterprises lacked suggestions on local government regulations and policies.
The Ministry of Planning and Investment's Foreign Investment Agency Deputy Director Nguyen Ba Cuong said that Law on Investment, Law on Corporate Income Tax, decrees guiding the implementation of Law on Foreign Investment and preferential mechanisms for foreign investors have been reviewed and amended. The attraction of FDI will focus on the high-tech sector, support industries, infrastructure, education and training. In addition, the Ministry of Planning and Investment will select 30 corporations specializing in infrastructure and the manufacturing industry to introduce specific projects. Moreover, the organization of trade promotion activities will focus on introducing highlighting the investment environment.
Localities are determined improve the investment environment. In the first two months of 2013, Dong Nai ranked first in attracting FDI with total registered and additional capital of US$214.35 million, accounting for 34 percent of total investment capital in the country. Dong Nai Department of Planning and Investment Director Bo Ngoc Thu said that to achieve above results, Dong Nai Province focused on attracting FDI in services, high-tech industries and support industries. A number of high-tech projects in industrial zones in the province opened up a new direction in investment and human resource training. Dong Nai has also continuously improved the investment environment in the direction of equality, safety and in accordance with the process of integration.
Binh Duong ranked second in attracting FDI with total registered and additional capital of US$134.9 million, accounting for 21.4 percent of total investment capital in the country. Binh Duong People's Committee Chairman Le Thanh Cung said that Binh Duong has focused on reforming
administrative procedures in order to help enterprises more easily
access to the Department of Planning and Investment, industrial zone management boards and the Department of Natural Resources and Environment. These departments will advise provincial people's committee to solve problems in order to create favorable conditions for enterprises./.
Source: VEN
Source: VEN
