Vietnam will become attractive investment market
Ha Noi, June 18 (VNA)-- With the current progress in policy reform, Viet Nam should become an appealing Southeast Asian market to foreign investors, said World Bank Country Director Andrew Steer.
Steer will chair a midterm review conference of Viet Nam's donors scheduled for June 18-19 in Hoi An town, central Quang Nam province.
The World Bank executive expressed his strong belief on the success of Viet Nam's determination to remove obstacles standing in the way of sustainable economic development and a favourable investment environments
He stressed, in an exclusive interview with the army paper Quan Doi Nhan, that once investors were assured of their smooth operations they would certainly increase investment into and strengthen their cooperation with Viet Nam. The country, therefore, would become one of the most appealing markets in the region to investors.
"This (prediction on the prospect of the Vietnamese investment market) was well grounded as shown through signs of current recovery of foreign direct investment, FDI, in Viet Nam," said Steer, adding that it's one of Viet Nam's strengths.
Eleven FDI projects with a total registered capital of USD 436 million were licensed for operation in May, bringing the total FDI into the country up to USD 882 million so far, or 2.5 times as much as that of the corresponding period last year.
Viet Nam has made great and highly efficient efforts in legal reform, which is much better than what the Government did 10 years ago, the World Bank country chief said. He cited the Government's recent approval of a concrete programme of action for legal reform to remove obstables to a sustainable development, and its recent decisions on reform in trade, banking and public spendings management. These reform efforts have won support and aid from the World Bank, international organisations, and donors.
He, however, suggested a better law enforcement. Authorities in certain localities have not really yet created favourable conditions for investors. The country's policies have undoubtedly worked very well in many areas, but it took the Government a lot of time to make concrete decisions on how to implement those policies, Steer said.
The country should also address major challenges from outside. The world economy was slowing down as the growth rate was halved to two percent currently from four percent in 2000. Farm produce prices have been sharply dropping in the world market, badly affecting Viet Nam's exportation. Worst hit were processed products with almost no growth over the last five months as compared to 16 percent in 2000, said the executive of the world financial institution.
Those challenges as well as the legal reform process and the potential of Viet Nam would be taken into account in Viet Nam's upcoming Donors' Mid-term Conference. They would serve as a foundation for donors to consider their concrete aid projects to the country in the near future, informed Steer.
Central to the conference's agency was the latest information on the economic development, the legal reform process, the post-national ninth Party Congress situation, the progress in partnership in implementing the poverty-alleviation projects, the progress made in comprehensive development.
Viet Nam's donors will officially meet in November this year to discuss thoroughly a strategy to attract foreign investors into the country in the next five years. Every donor country has its own potential and would offer aid to a certain area. Viet Nam itself must determine suitable donors to make sure of the aid's highest possible efficiency.
The World Bank and donors were trying to work out concrete measures following a joint strategy. In addition to aid, donors would provide consultation services and technical analysis. In the next six months, donors have to decide their aid projects. For the best decisions, the World Bank and donors are thoroughly studying relevant documents, especially the one entitled "Reviewing Viet Nam's economic reform process, progress and follow-up steps and donors' assistance". Documents on the development of cooperative relations between Viet Nam and its donors and international organisations also draw their interest, the World Bank Country Director concluded.--VNA
