Ha Noi (VNA) - Foreign investments including those from Europe are likely to be poured into Viet Nam as the investment community are increasingly confident in new business opportunities after Viet Nam has become the newest member of the World Trade Organisation (WTO), says Oliver Massman, a member of the management board of European Chamber of Commerce (Eurocham) in Vietnam.
“I feel that now there is much more interest in direct foreign investment in Viet Nam, there will be a greater interest in Europe”, Oliver Massman told Viet Nam News Agency. He added that many investors who come to Viet Nam would join Eurocham, companies in the power generation sector for example.
The renewed interest from the European business community in Vietnam , Massman said “especially with regard to the infrastructure sector, telecoms development, bridge, road building, airport building” is based on the understanding that Viet Nam is currently one of the fastest growing economies in the world. Economic liberation has in fact helped transform the country into the second most productive in Asia , only after China . “Telecom companies will of course come more and more to Viet Nam because Viet Nam has a very interesting telecom operation market”, he said.
Massman praised Viet Nam ’s advantage in investors’ eyes as being one of the “most politically stable countries” in Asia for the last decade and affirmed that another major advantage of Viet Nam is its “highly skilled, fast learning workforce” paid reasonably low salaries.
Massman also hailed the government’s efforts to improve investment conditions: “I’m very happy that the local government listens to investors’ advice and responds to their recommendations. Compared to other countries who hardly listen to investors, this is very positive example”.
He also commended the country’s efforts to clear hurdles so that equal treatment for all enterprises was promulgated under Vietnamese Law. “It’s very good that Viet Nam for the first time in its history has moved to comply with WTO non-discrimination principle”
As Viet Nam joins WTO, the country is entering a new stage of development and will need to reshape its economy and improve its still under-developed infrastructure, aiming for sustainable growth, Massman said.
Salary increase post-WTO accession is an issue for Eurocham members. Although they will benefit from a growing knowledge base of workers, there is concern about the effects of salary increase. Massman comments: “If Viet Nam increases the salary level too fast, Viet Nam will be not competitive any more” as compared with other regional countries.
He said to attract an even greater influx of investment, Viet Nam will need to provide an “legally and commercially accountable system” with clear implementation guidelines.
Matters such as labour disputes and clear guidelines on opening of foreign trading companies should be addressed so that investors are confident about the strong and sound legal system in Viet Nam , Massman stressed.
Massman also recommended Viet Nam to attract more investors into the processing sector in order to add more value on its exports.
Massman said Viet Nam can do a much better job to lure foreign investment as compared to other countires in the region if “it manages to grow in a sustainable mode and if it sends a very clear message to foreign investors that it has prepared a good basis, a good legal basis for foreign investors. You can come here and you can feel secure”.-Enditem |