High-powered investors back local market

The delegation of presidents and directors from 50 Japanese firms were in Vietnam last week exploring business opportunities.
The business leaders came from firms specialising in electricity, electronics, machinery and equipment, including Akita Corporation, e-Venture Support, Chiyoda Kogyo Company and Ichimonji Company.
The visit was in response to an invitation from Prime Minister Phan Van Khai in his visit to Japan last April.
Thang Long Industrial Park Corporation general director Fumikazu Gocho said: “The favourable business environment has attracted more and more Japanese investors to Vietnam.”
He said the majority of the 24 projects in operation in Thang Long Industrial Park, were Japanese-invested with a total $245 million in registered investment capital.
Several Japanese investment projects have been making large profits. Canon announced it had made a $20 million profit in its first year.
TOA Vietnam Company general director Junichi Teramae said under the Foreign Investment Law, his company had been exempted from corporate income tax for four years.
The company was granted an investment licence in November 2001 with investment capital of $1.1 million, to manufacture and assemble cameras and related products.
He estimated the company would have a turnover of $3 million this year, $10 million in 2004 and $12 million in 2005.
Sun Mark Company president Takashi Noguchi told Vietnam Investment Review there was a lot of potential in Vietnam that his company and other Japanese firms would take advantage of in later investment projects.
He said the level of success enjoyed by Japanese investment projects in
Vietnam seemed to be typical and had interested other potential investors. TOA Vietnam Company director and chief accountant Masaa-ki Yokoyama, however, said said support industries in Vietnam were still lacking.
“Just 5 per cent of the materials TOA Vietnam uses here for production are domestically produced,” he said. The remaining 95 per cent was imported from Japan and Taiwan, he said.
“In spite of efforts by the Vietnam government to improve the investment environment, some inappropriate rules remain.
“For example, to increase the investment capital of a project, investors are required to increase chartered capital as well.” He said this was a limitation on investors wanting to increase their project’s investment capital.
JETRO’s Watanabe said the Japanese government would work hand-in-hand with Vietnam to continue improving the investment environment.
“The two sides have made cooperation measures to boost Japanese investment in Vietnam,” he said, adding that the visit by the delegation was a practical step toward that goal.