According to Mr. Kawaue Junichi (Consul General of Japan in Ho Chi Minh City), the investment environment in Vietnam is increasingly improving, with political stability, a high-quality workforce, less cumbersome tax and customs procedures, and many administrative procedures being streamlined, saving costs and time for foreign investors, especially Japanese businesses, in Vietnam.
On December 18, 2018, leaders of the Ho Chi Minh City People's Committee and relevant departments held a direct meeting with Japanese businesses to discuss the investment environment. The majority of Japanese businesses agreed that Ho Chi Minh City in particular, and Vietnam in general, have undergone remarkable changes.
Japanese businesses are choosing Ho Chi Minh City as a long-term development destination.
As of November 2018, Japan is the city's fifth-largest investor with 1.247 active projects and a total investment capital of nearly $4,2 billion. Compared to 2017, there have been over 200 new registered projects and more than $200 million in increased investment capital from Japan.
In 2018, there were 16 new issues raised, mostly related to taxes and customs, and 22 issues that reassessed problems from 2016-2017.
Previously, regarding unofficial costs, the City Customs Department required the association to work directly with the Department if businesses had to pay bribes when carrying out procedures. This had a strong effect and changed the city's image in the eyes of foreign businesses. A representative of the Japan Business Association in Ho Chi Minh City also emphasized that while the problem of unofficial costs existed previously, the association has recently received no more complaints about this issue when dealing with tax or customs procedures. A favorable environment is always an attractive destination for Japanese investors as well as investors from other countries.
Positive investment environment reforms, coupled with a more open investment environment and objective challenges from other markets, have led many Japanese investors to shift their investments to Vietnam. In 2018, Japanese businesses tended to choose Ho Chi Minh City as a long-term investment location for projects in construction, environment, education, and more.
Open and transparent policies are essential conditions.
However, to attract Japanese investment shifting from other countries, as well as new investments, Vietnam needs to further improve its investment environment, making it more open, transparent, and promising, thus becoming a land of great development potential.
Furthermore, according to the Japanese Consulate General and the Japan Business Association in Ho Chi Minh City, the city has resolved many difficulties and obstacles for businesses, but some issues still remain. The Japanese side hopes to receive more support from the city's leaders and relevant departments.
Mr. Le Thanh Liem, Vice Chairman of the People's Committee of Ho Chi Minh City, said that Ho Chi Minh City highly appreciates the investment effectiveness of Japanese businesses. The city hopes that Japanese businesses will continue to trust and choose the city as an attractive investment destination for expanding production and business activities, bringing benefits to both sides.
See more: Industrial park for Japanese businesses inaugurated in Can Tho.
