Socialist Republic of Vietnam

A meeting to discuss investment opportunities in Vietnam post-WTO membership was attended by 1,300 business and financial executives from Vietnam and 22 foreign countries.
Addressing the opening ceremony of the two-day forum in Hanoi Wednesday, Deputy Prime Minister Vu Khoan said Vietnam was working hard to improve its business and investment environment and bolster its legal system to suit World Trade Organization needs.

“Vietnam has created a more transparent legal system and improved its environment than ever before,” he said.

To integrate deeper into the region and the world Vietnam had accelerated negotiations to join the WTO and recent efforts showed that the accession was drawing near, he said.

Vietnam had successfully fulfilled its 2001-2005 socio-economic development plan and was implementing the 2006-2010 plan, which aimed to lift the country out of its underdeveloped status, he said.

“Vietnam has created a more transparent legal system and improved its environment than ever before,” Deputy PM Vu Khoan said.

For this, he added, the country would require at least US$140 billion capital formation to achieve annual GDP growth of 8 percent in the next five years. So, foreign investment was needed to realize the target, he said.

“Vietnam has created a more transparent legal system and improved its environment than ever before,” Deputy PM Vu Khoan said.

Keen interest

John Shrimton, founder of the Dragon Capital Fund, said foreign investors were looking forward to seeing Vietnam accede to the WTO and hoped this would offer greater opportunities to both local and foreign investors.

“Foreign investors’ interest in Vietnam is unprecedented,” he said.

Virginia Foote, president of the US-Vietnam Trade Council, expected a new wave of US investment in Vietnam once the two countries ended their final round of bilateral talks on the latter’s WTO membership.

Michael Smith, president and CEO of HSBC, said many foreign companies and investors had rushed to Vietnam thanks to the opportunities it offered.

“Many foreign companies were planning more large projects in Vietnam. I believe Vietnam will continue to be one of the most dynamic countries in Asia,” he told Thanh Nien.

Worries

Smith said developing a capital market was one of Vietnam’s most urgent tasks.

Markus Cornaro, head of the EC Delegation in Vietnam, said Vietnam should diversify sources of investment and encourage foreign enterprises to invest in new sectors.

Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry, said joining the WTO would provide Vietnam new markets and boost the export of goods and services.

“However, Vietnamese businesses will face challenges due to fierce competition, tariff reduction, subsidy cuts, and the opening of the services market,” Loc warned.

The two-day forum aims to compare notes on opportunities and challenges Vietnam will face after joining the WTO and help policy makers identify new investment opportunities in the country.

Source: Thanh Nien News

Reported by Xuan Danh – Translated by Thu Thuy