Great leap in Japanese investment in Vietnam forecast

VNECONOMY 24/10/2006

Great leap in Japanese investment in Vietnam forecast

Interview with Vietnam Minister of Planning and Investment Vo Hong Phuc

Japan is one of the biggest donors of ODA to Vietnam. What are some of the reasons that have made Japan commit to raise ODA for Vietnam?

Results in economic development of Vietnam thanks to ODA in recent years may be one of the reasons that make Japan consider increasing ODA for Vietnam.

In addition, it is Vietnam’s attitude in combating misconduct in ODA use, the quality of works built by Japan’s ODA that Prime Minister Nguyen Tan Dung mentioned in his speech at the Japanese Congress.

Moreover, the two sides have clearly defined the orientation for the use of ODA in the time to come: building strategic works in Vietnam such as the north-south highway and railway and the infrastructure for the Hoa Lac hi-tech part in Hanoi.

A very important content of the joint statement between Vietnam and Japan is the two sides will discuss and sign an economic partnership agreement. Could you talk more about this?

The idea for such an agreement has just been thought of and its specific contents will be designed in the coming time.

Vietnam and Japan have had an agreement on investment liberalisation and protection which works as the foundation for attracting and creating open environment for investment.

Therefore, the economic partnership agreement will further focus on trade: commodity trade, service trade and intellectual property protection. However, if investors suggest other ideas, we can add them to the agreement.

The two sides are striving for starting negotiations on this agreement in January 2007. Such agreements need around one to 1.5 years for negotiations so I hope by 2009 Vietnam and Japan can sign this agreement.

When the agreement is signed, it will create a favourable environment for Vietnamese and Japanese businesses to promote bilateral trade.

During the visit the Vietnamese Ministry of Planning and Investment (MPI) and the Sumitomo Group signed an agreement on investment promotion. Could you reveal something about this agreement?

Under the agreement, the MPI and Sumitomo will exchange information related to policies and laws on the investment environment in Vietnam. Sumitomo will provide the information to other Japanese investors who want to invest in Vietnam. This group will also gather opinions of Japanese investors about Vietnam’s investment environment and transfer them to the MPI. In addition, the two sides will cooperate to organise investment promotion activities in Vietnam and Japan to attract more Japanese investors to Vietnam.

Sumitomo also wants to invest in some projects in Vietnam with capital up to several billions of US dollars, including big ones like the construction of the Van Phong port in the central province of Khanh Hoa, a power plant in southern Binh Thuan province and infrastructure of some industrial zones in northern provinces.

Apart from Sumitomo, other Japanese groups also want to invest in projects in Vietnam such as in steel projects in the central province of Ha Tinh or the Hoa Lac hi-tech park in Hanoi. If the Vietnamese and Japanese governments ensure infrastructure in the Hoa Lac hi-tech park, Mitsubishi will call for other investors to come to the park.

I think these are good signs for the Hoa Lac hi-tech park because 12 years have passed but there have not been any big changes in this park. But I can say that in the next five years this park will see many changes.

Source: Tuổi trẻ

source: VNEconomy