Vietnam plans more incentives for foreign investors

Vietnamese-Prime-Minister-N

Investment Minister Bui Quang Vinh has promised Vietnam will continue offering foreign investors appropriate incentives in a manner that benefits both the nation and investors themselves.

Twenty-five years ago Vietnam rolled out the red carpet to foreign investors, offering them a chance to capitalise on the country’s natural resources, incentive policies, and low labour costs.

“We welcomed them because their technologies were more advanced than ours, and one of the purposes of encouraging the first investment waves was to create jobs for local people,” Vinh said in an online weekly Q&A session run by the government’s portal on July 7.

He said the current incentives are much more selective, especially for manufacturing industries such as footwear and garments which import their materials for production and generate low added values.

“We only grant preferences to those industries that create high added values, meaning more employment generation, more diverse products, and the use of more domestic materials.”

Vinh also explained why Vietnam stands behind Thailand and Indonesia in terms of foreign investment attraction, saying its business environment suffers from insufficient infrastructure and cumbersome administrative procedures.

Statistics show Thailand has attracted investment from approximately 7,000 big Japanese businesses. Vietnam has only managed 1,500.

However, Minister Vinh said there is no point in comparing the two figures, because Thailand opened its doors to foreign businesses several years before Vietnam followed suit.

In addition, the advanced Thai support industry is enticing to large numbers of Japanese automobile companies.

“Vietnam emerged as an attractive market around five to seven years ago, licensing impressive numbers of projects. Not all of these projects reached realisation and not all brought fruitful results,” said Vinh.

The Minister confirmed that foreign investment is important to Vietnam’s economy, accounting for one fourth of the country’s total social investment.

There is no doubt that foreign investment contributes to technology advances, management skill improvements, and successful structural economic reforms.

In the first six months of 2013, foreign direct investment (FDI) businesses exported 66 percent of the country’s total and generated 2 million jobs for local people.

Realising this importance, Vinh said Vietnam will continue offering incentives to attract more foreign investment, while striving to address the issues hindering the development of its business investment.

Source : Voice of Vietnam | July 9, 2013

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Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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