Meets standards to attract FDI into supporting industries

When choosing Vietnam as an attractive investment destination in the supporting industry, foreign investors not only expect a vibrant market but also desire a favorable investment environment and smooth administrative procedures.

Need infrastructure that meets international standards

According to the assessment of the Vietnam Association of Foreign Investment Enterprises, the Government, ministries, branches and localities have created legal conditions and proactively removed bottlenecks and barriers to help them invest and do business smoothly; promote administrative procedure reform, shortening procedure time; prepare necessary conditions to attract investment such as clean premises, infrastructure, energy, labor... This is increasing Vietnamese reputation as a safe and attractive investment destination.

Therefore, when investing in Vietnam, Mr. Onaga Masaru said, his company needs a factory system that is not too large but must be complied with Japanese and international standards, as well as a link in the production line, continuously connecting with businesses in the production chain.

In addition, many Japanese businesses when investing in Vietnam are also interested in the quality of related infrastructure such as transportation, logistics, raw materials as well as the quality of human resources, preferential policies... According to Mr. Onaga Masaru, this is also a problem that Japanese businesses are facing in Japan, so they need to invest abroad to improve their competitiveness. Therefore, Japanese businesses put their faith in the improvements that Vietnam can bring.

Convenient procedures, enhanced cooperation

For South Korean businesses, the need for investment in supporting industries in Vietnam is huge. Mr. Sung - Hun Jung, Director of Semisol Tech Company, shared that Vietnam offers many opportunities for foreign investors from wide-open integration and signing of free trade agreements (FTA). However, Mr. Sung - Hun Jung recommended that policy mechanisms from central to local levels need to be unified and open, creating a favorable business and investment environment for international businesses.

Regarding the business environment, international supporting industry enterprises expressed their desire to receive support from management agencies and local authorities. For example, simplifying and synchronizing administrative procedures, especially applications for investment registration certificates, business registration, construction permits, fire protection and prevention, environmental permits... to help businesses reduce time, effort, and finance when doing investment procedures.

Foreign businesses, including Japanese ones, also expressed their desire to receive specific instructions and specific mechanisms on the import of used and well-used machinery and technological equipment in their country or a third country to Vietnam. This will help businesses move production of supporting industry and high-tech products to Vietnam more conveniently. Along with that are policies on accommodation support for foreign experts and traders; access preferential capital…

Along with mechanisms and policies, foreign investors also want to build a raw material chain in Vietnam, not only helps increase product localization but also creates spillovers for the business community in particular and the economy in general.

Regarding this issue, Mr. Ned Wang, Deputy General Director in charge of global supply chain of INVENTEC Group, expressed that INVENTEC intends to localize its products, so suppliers in Vietnam need to focus on producing components and raw materials such as plastic components, circuit boards, boxes. After that, the deeper level will be circuit board components, electronic components...

From the above issues, Government representatives as well as leaders of many localities said they would always pay attention and commit to accompanying foreign investors. Along with that, domestic businesses have also seized the opportunity and increased cooperation with foreign investors to form production complexes and links for mutual development.

For example, businesses recommend that the Government and Hanoi continue to support the formation and development of the Vietnam-Japan Techno Park at at the Hanoi Southern Supporting Industrial Park, which is by businesses in the KOBE (Japan); cooperate to support Hanoi-Vietnamese businesses to participate in Japanese and global production chains. Or supporting local businesses to enter INVENTEC’s production chain will benefit both parties in reducing logistics costs, reducing direct, indirect costs and throughout the process of cooperation and production together to be able to monitor and support each other...

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