Vietnamese market attractive to foreign businesses

Viet Nam continues to be an attractive market for foreign investors as the number of foreign business delegations visiting Vietnam has suddenly increased during the last few months, according to the Viet Nam Chamber of Commerce and Industry (VCCI).

The VCCI branch in Ho Chi Minh City alone received an average of five delegations each month.

The majority of foreign enterprises came from Asia-Pacific countries, including the Republic of Korea , Singapore , Japan , China , Australia and Malaysia . They visited Viet Nam to seek investment opportunities in the food processing industry and in real estate.

Viet Nam sees massive potential for cooperation with other countries within the Asia-Pacific region, due to their favourable geographic locations and cultural similarities.

In addition, several delegations from African countries, the UK, Italy, the Netherlands, Sweden and the US, mainly operating in finance and banking, consumer goods and shipbuilding, not only sought partners but also spent time negotiating contracts governing the import of agricultural products, households utensils, information technology and fine arts from Viet Nam.

The Italian Chamber of External Trade (ICE) President Umberto Vattani, who joined an Italian business delegation to seek investment and cooperation opportunities in Viet Nam from November 4-7, said that Viet Nam , with its increasing importance in Asia and its active participation in the global economy, together with its huge untapped potential, offers fantastic investment opportunities for Italian enterprises.

In an article reviewing the 20-year implementation of Vietnam’s Foreign Investment Law (1988-2008), Managing Director of the US Chamber of Commerce in Vietnam Adam Sitkoff wrote that US businesses have kept a close eye on Viet Nam, with some even considering the 85 million-strong country the world’s most attractive emerging market.

According to a survey conducted by the Japanese Trade Promotion Organisation, Japan has the largest number of enterprises that have expanded the scope of their operations in Viet Nam, with 92.6% of production firms and 88 percent of non-production companies having done so.

In the 2008 Business Report recently released by the World Bank, Viet Nam ranks 91 out of 178 countries and territories worldwide in the facilitation of its business environment, leaping three places against last year and 13 places against 2006’s position.

In the context of the continuing global financial crisis, Viet Nam was still evaluated as the best long-term production venue in Asia . The country has experienced tempestuous flows of foreign investment with 953 projects worth a total of 58.3 billion USD licensed during the first ten months of this year.

Vietnam’s improved investment and business environment has resulted from efforts made by the Government, ministries and localities to enhance law enforcement and administrative reform, as well as increasing the frequency of dialogues to address difficulties facing the country’s enterprises.

However, poor infrastructure, the shortage of skilled and qualified human resources and complicated administrative procedures are hindering the progress of the country’s investment attraction. (VNA)