PM introduces investors to Vietnam’s special economic zones

PM introduces investors to Vietnam’s special economic zones

Prime Minister Nguyen Xuan Phuc said at an April 28 round table discussion with 16 leaders and CEOs of leading multinational groups and businesses operating across diverse fields in Singapore.

While discussing the overall picture of the Vietnamese economy with the Singaporean multinational companies, the PM said in the first quarter of 2018, Vietnam's economy continued its exponential growth to reach its highest level in ten years. The country has maintained socio-political and macro-economic stability, and the increased openness of the Vietnamese economy is seen as a good opportunity for multinational companies to invest in Vietnam.

The improvements in Vietnam’s business environment have been acknowledged by reputable international organizations. The country is a member of the 12 new generation FTAs, and is in the negotiation process for a number of important trade agreements that will open up a wealth of opportunities for investors, Phuc noted.

PM Phuc said that 13 percent of the Vietnamese population are now defined as middle class and the figure is projected to keep rising, making the purchasing power of the 93 million strong market more attractive to any business. He then cited the fact that 55% of the Vietnamese population are regular Internet users and nearly 50% use social networks, while there are around 130 million mobile phone subscriptions, all of which are highly favourable conditions for investors.

The PM also urged multinational companies to accelerate production and business projects in Vietnam with the adoption of advanced technologies and adherence to Vietnamese and international law.

Appreciating Vietnam’s efforts in improving the business environment to create an attractive investment destination, leading multinational corporations and companies have shown their keen interest in investing in projects across a variety of fields such as health care services, online education, and support for farmers in online payments through the use of mobile devices.

Businesses asked the Prime Minister and the Government to act swiftly in providing solutions to difficulties, especially in removing pending bottlenecks in policies, reforming the capital market, strengthening connectivity between economic sectors, simplifying import-export procedures, and implementing one-stop customs.

At the meeting, Vietnamese ministry leaders responded to many questions and recommendations made by multinational companies, while assuring the Government's transparent and open policies in economic management, and dealing with businesses and investors. This includes encouraging foreign investors to become actively involved in the equitization process of small and medium-sized enterprises (SMEs).

In addition, Vietnam is actively removing its policy barriers in several areas under the State monopoly in order to incentivize the involvement of private enterprises and foreign investors in production and business activities. Vietnam has been speeding up the application of new taxation and customs procedures which are more convenient and in keeping with the international trend.

The same day, PM Phuc received Christian Cabrol, Senior Vice President of the multinational integrated oil and gas company Total’s Marketing & Services for Asia Pacific & Middle East during which, he suggested Total, expand its operation in the country.

Christian Cabrol said his company has operated in Vietnam since 1990 and now employs about 1,000 locals to supply the market with oil and liquefied petroleum gas (LPG).

The group is now taking heed to the production of LPG and electricity in Vietnam and is ready to team up with local partners, adding that the group is proposing the construction of a number of port infrastructure to receive LPG products.

Hailing total’s expansion plan in Vietnam, Phuc said Vietnam welcomes Total’s intention to work with Vietnamese partners to build infrastructure to receive LPG product and called on the group to become involved in information exchanges with Vietnamese partners such as the PetroVietnam and Electricity of Vietnam.