Better infrastructure a prime condition for Japanese investors

“Vietnam needs further development of seaports, roads and rail network,” Toshitaka Hagiwara told after a press conference held in HCMC last Friday (02 Oct 2009) to review the results of the 35th ASEAN-Japan Business Meeting (AJBM) taking place here from September 30 to October 2.

Hagiwara explained before Japanese companies invested in an ASEAN country they considered not only the domestic demand of this market but also the possibility of exporting their products to the other markets in the bloc, the United States or the European Union.

Hagiwara said to use a country as their export hub, Japanese companies needed good transportation network, and a simple taxation system among others. “Japanese companies make their investment decisions based on these attractions.”

He said Vietnam was a market of big population and had a strong talent pool compared with other ASEAN nations. “Vietnam has much to offer in terms of human resource. This is a big strength of Vietnam but workers should be trained to meet the demand of employers.”

Hagiwara said Japanese companies regarded Asia in general and ASEAN in particular as a center of core growth and their prioritized destination for investment. But, he stressed that it was important for each country to demonstrate how it was able to provide a safe environment for Japanese companies to employ high-quality workers and operate efficiently. “Each country has its own strength and potential,” Hagiwara added. “The country should try to provide more benefits than other countries if they want to attract Japanese investors.”

Figures of the Ministry of Planning and Investment show Japan was Vietnam’s fourth largest foreign investor after Taiwan, South Korea and Malaysia as of July 2009, with registered capital of USD 17.62 billion pledged for 1,116 projects in Vietnam.

Hagiwara expected more Japanese investors would come to explore and invest in Vietnam, particularly when Japan’s economy recovers hopefully in the coming spring as he forecast. He was the co-chair of the 35th AJBM together with Nguyen Huu Tho, general director of Saigontourist Holding Company. Tho told the press conference that the meeting in HCMC wrapped up in success.

Tho said some 350 representatives of Japanese and ASEAN companies participated in the meeting on the theme of “Strengthening the Effectiveness of ASEAN and Japan Cooperation toward a New Economic Growth Strategy.”

He said the meeting touched on “Global Economic Crisis: Challenges and Solutions for the Business Sector,” “A New Economic Model for ASEAN and Japan” and “Toward a Meaningful Operation of Bilateral and Multilateral EPAs (economic partnership agreement) between ASEAN and Japan.”

AJBM was established in Tokyo in 1974 based on the initiatives of Keizai Doyukai, which is one of the most influential economic organizations in Japan and has more than 14,000 members including leading business people of the largest companies in Japan.

The 35th AJBM was organized by the Vietnam Chamber of Commerce and Industry (VCCI) and Keizai Doyukai.