(MPI)-On July 9th, 2020, in Hanoi, the Ministry of Planning and Investment in collaboration with Japanese Embassy to Vietnam, Japan External Trade Organization (JETRO) and Japan Bank for International Cooperation (JBIC) organized the Vietnam-Japan Online Investment Promotion Conference under the co-chairing of Deputy Minister Vu Dai Thang and Japanese Ambassador to Vietnam Okabe Daisuke.
Creating the most favorable conditions for investors to do investment and business successfully in Vietnam
This is the first time a major investment promotion conference is held online with the participation of more than 1,000 Japanese enterprises from Japan and around the world, showing the huge interest and great expectations of the Japanese business community for Vietnam. The Conference provides the latest information on Vietnam's business investment environment in the context that Viet Nam has initially controlled the Covid-19 pandemic and a new series of policies issued, including Investment Law (revised), Enterprise Law (revised), Law on Investment in the Method of Public Private partnership (PPP), the Resolution ratifying the EVFTA Agreement and the EVIPA Agreement. The new policies are issued in the direction of creating favorable, transparent and competitive legal framework in accordance with international practice to effectively attract quality FDI projects as well as to improve investment environment in the coming time. The Conference also provides information relating to the preparation of land, labour and energy conditions, and so forth to welcome the new foreign investment flows and create the most favorable conditions for investors to do business successfully in Vietnam.
Deputy Minister Vu Dai Thang delivered his speech at the conference. Photo: MPI
In his opening speech, Deputy Minister Vu Dai Thang said that Vietnam had put good control over the Covid-19 pandemic, which is recognized and appreciated by the international community, becoming a safe country and attractive investment destination for the international entrepreneur community. The World Bank and the International Monetary Fund have given Vietnam's economic growth in 2020 a pretty good rating. Vietnam is also one of the few countries in the world to gain positive growth in the first 6 months of 2020.
While the global FDI is likely to decline to 40% in the year 2020 due to the impact of the pandemic as forecasted by the world's economists, Vietnam’s FDI attraction in the first 6 months remains relatively optimistic. Total registered capital in the first 6 months of 2020 reaches over 15 billion USD, or 85% compared to the same period last year. Thetotal value of newly registered capital and adjusted capital is 8.43 billion USD and 3.72 billion USD, respectively, a year-on-year rise of 13.8% and 26.8%. These are positive signals, showing foreign investors’ trust in the investment environment in Vietnam.
Up to now, Vietnam is the destination of more than 32 thousand projects with total registered capital of 378 billion USD from 136 countries and territories, in which Japan is the second largest investor with capital of more than 60 billion USD, said Deputy Minister Vu Dai Thang.
Vietnam's business and investment environment has made a strong and highly-appreciated improvement according to the assessment of international organizations. In particular, US News Magazine & World Report ranked Vietnam 8th place out of the 20 best economies in the world to invest in 2019, up 15 rankings from 2018. According to the World Bank (October 2019), the index of favorable business environment Vietnam in 2019-2020 is ranked 70 over 190 countries.
According to the survey of Japanese enterprises investing in Asia and Oceania done by JETRO in February 2020, over 63% of Japanese enterprises doing business in Vietnam would continue to expand their business, the highest rate in ASEAN and the third ranking in the region of Asia and Oceania.
Continuing reforms and further promoting the advisory role to help build the tectonic government
In the coming time, Vietnam will continue to improve institution and policies in order to enhance the quality and efficiency of foreign investment cooperation with the goal of focusing on selective foreign investment cooperations, taking quality, efficiency, technology and environmental protection as the major criteria of evaluation. At the same time, Vietnam needs to focus on projects with advanced technology, new technology, high technology, clean technology, modern governance, highly-added value and viral influence, which could connect Vietnam to the global production and supply chains. This is also the strength of Japanese businesses.
Deputy Minister Vu Dai Thang said that specialized dialogue mechanisms such as the Vietnam-Japan Joint Initiative along with the talks and annual seminars in collaboration with JETRO and JCCI have contributed positively to the improvement of the institution and policies, improving the investment environment in Vietnam. The Ministry of Planning and Investment has provided Japanese enterprises with the investment support through help desks located at the Ministry of Planning and investment such as Saitama Desk, Aichi Desk and Niigata Desk.
Additionally, Vietnam is actively perfecting the infrastructure system to be increasingly synchronized and modern, upgrading the financial market and instruments, improving the quality of human resources, developing supporting industries, preparing necessary land and energy conditions, simplifying administrative procedures, strengthening the capacity of local enterprises to create the most favorable conditions to welcome capital flows to Vietnam.
Along with improvement of the business environment, the Government also promotes innovation, strong implementation of e-Cabinet and digital economic development, including construction and development of the National Innovation Center. In 2019, Vietnam's global Innovation Index moved up three ranks to 42 over 129 countries, 17 ranking improvement compared to 3 years earlier, only behind Singapore and Malaysia in ASEAN.
With the country's legal framework being increasingly unique, linkage between domestic and foreign markets being further open, especially through the newly signed free trade agreements, plus the potentials, advantages and determination of the Government, ministries and local authorities in improving investment environment and drawing foreign investment, Vietnam continues to be an attractive destination for foreign investors in general and Japanese enterprises in particular to gain more successful investment opportunities in Vietnam.
Together with the joint efforts of the whole political system, the Ministry of Planning and Investment is committed to continuing to innovate policies, further promoting its advisory role to help the government to create breakthrough in the reform of the investment environment business and the method of supporting enterprises.
Seizing the opportunity to become a more thriving and prosperous country
Japanese Ambassador to Vietnam OKABE Daisuke delivering his speech.
Speaking at the conference, Japanese Ambassador to Vietnam Okabe Daisuke emphasized that, Vietnam had developed rapidly and strengthened its presence in the international fora in the 20-year relation with Japan. Ambassador Okabe Daisuke highlighted that Vietnam-Japan extensive strategic cooperation was becoming increasingly strengthened and confirmed by the trustworthy and coherent relationship between the leaders of the two countries.
In the context of the global complicated Covid-19 pandemic without signs of termination, Viet Nam has done a good job of disease prevention with no deaths. This is a great result of Vietnam with high risk management capability. In addition, while other countries are wretched with the epidemic, Vietnam's economy shows the rapid wake up, becoming the first country to diversify the supply chain. Investors in the world, including Japanese investors are very interested in Vietnam, a new normal investment destination in a post-Covid-19 state. We wished Vietnam would grasp this opportunity and become a more thriving and prosperous country, Mr. Okabe Daisuke stressed.
Accordingly, it is necessary to further enhance travelling and trade between the two countries in the future, improving the rate of disbursement of public investment in on-going projects, which will be the efficient economic stimulus solution and Japan will continue to support this operation, and promoting FDI attraction. Foreign investors, including Japanese enterprises, are very interested in the hardworking and smart labour market of Vietnam. Viet Nam deserves higher level of credit ranking with its outstanding growth. "I suppose that Vietnam with its excellent growth definitely deserves the BBB ranking," said Ambassador Daisuke Okabe. He also affirmed that Japan believed in Vietnamese leaders’ policy response in the pandemic and supported Vietnam’s further development in the new normal state.
At the Conference, representatives from related departments of the Ministry of Planning and Investment provided information on the orientation of foreign investment in Vietnam; new points of the amended Investment Law, the amended Enterprise Law and the PPP Law. Japan’s Embassy representatives in Vietnam, JETRO, JBIC, and Japanese enterprises underlined Vietnam's growing role in the international community, especially its impressive result of controlling the Covid-19 pandemic and claiming that Vietnam is a safe country, the most attractive destination for Japanese enterprises during the post-epidemic period.
Also at the meeting, Deputy Minister Vu Dai Thang clarified some of the contents of the investment environment that are of Japan’s concern; the trend of the investment wave shifting in the present context and Vietnam’s preparation; PPP investments; privatization of enterprises in Vietnam; and promotion of infrastructure development in the future./.
Ministry of Planning and Investment