HCM City lays out plans for sound business climate with Japanese firms
Ho Chi Minh City pledges to develop an equal and transparent business climate for foreign firms, including those from Japan, to aid in business development plans in the southern economic hub, Vice Chairman of the municipal People’s Committee Vo Van Hoan said on December 9.
At a roundtable jointly held by the city Trade and Investment Promotion Centre (ITPC) and the Japanese Business Association of Ho Chi Minh City (JCCH), Hoan stressed that Japan is now the third largest investor among 127 countries and territories landing investment in the city, pouring over US$5.88 billion into 1,767 valid projects.
The city wants to remove roadblocks to improve the investment environment and become a priority destination for Japanese businesses, he said, as well as meet investor requirements regarding technical and social infrastructure and human resources.
Onose Takahisa, vice president and head of the tax-customs board at JCCH, highlighted persistent challenges with value-added tax (VAT) refund processes, with businesses reporting extensive delays in the refund procedures due to complex verification processes causing significant cash flow disruptions.
The local tax authority responded by clarifying existing regulations and urged the Japanese firms to provide full and accurate dossiers so as to push ahead tax refund. It added more personnel have been arranged while information technology application boosted to speed up refund and facilitate tax payment and management.
A critical concern raised by Nakagawa Motohisha, vice president and head of the business environment board at JCCH, centred on the Tan Thuan Export Processing Zone, saying with only 17 years remaining on the current land lease, businesses urgently seek to clarify future development plans to make rational decisions about workforce, infrastructure, and technological investments.
In response, local authorities said the city presented a comprehensive development plan for export processing and industrial zones for the 2023 - 2030 period with a vision towards 2045. The scheme prioritises maintaining industrial land areas while encouraging technological transformation. Specifically, the Tan Thuan Export Processing Zone will focus on attracting high-technology projects until 2041.
The city will soon announce the criteria and support policies to facilitate technological innovation for existing enterprises, enabling them to make suitable transformation choices. The city is encouraging companies to boldly transition their technological approaches and business models to meet green and sustainable production standards, officials noted.
