Deal to draw fresh Japanese investment

The initiative’s final report, signed off on last week by the Minister of Planning and Investment, Vo Hong Phuc, and Japanese Ambassador Norio Hattori, will serve as the basic framework for the country to remove all remaining obstacles in the current business climate.
The report will establish and implement a strategy to attract foreign direct investment (FDI) as well as establish investment regulations, capacity-building initiatives for authorities and measures to give assistance to current investors in Vietnam.
Phuc praised Japan’s support in the preparation of the report and said it was of great significance to the improvement of Vietnam’s business environment. It would strengthen national competitiveness and serve as an important tool for the country to enter the World Trade Organisation, he said.
“The signing [of the report] is just the first success. The most important thing is how Vietnam implements the commitments in the report,” Phuc said.
Hattori said Japan would offer official development assistance loans and provide technical support to help Vietnam implement the commitment.
For his part, he said, the ambassador and the Japan External Trade Organisation (Jetro) would inform potential Japanese investors of the advantages detailed in the report.
The ambassador said that although Japan had good economic relations with many other ASEAN nations, it had never helped one prepare such a report before.
“There has been no precedent before Vietnam. Japan always considers Vietnam as a strategic partner and a good place for doing business,” he said.
Atsushi Mise, chairman of the Japanese


Business Association in Vietnam, said Japanese investors would look forward to seeing how Vietnam carried out its commitments to improve the investment environment.
Mise said that competition for FDI in ASEAN countries had become more severe and, therefore, the country should remove all obstacles to business.
The two items on which the two sides failed to reach agreement were related to the motor and automobile industries, which Japanese investors dominate.
Phuc said that both sides would continue to negotiate on the issues this month.
“These two industries should be developed under the government’s policies. But I hope the two sides will be able to find a common voice,” he said.
The two sides will establish a joint trade and investment working group to follow and facilitate the implementation of all the actions to be implemented by Vietnam.
The two prime ministers, Phan Van Khai and Junichiro Koizumi, initiated the action plan when Khai visited Tokyo in April this year.