HCM City works to better investment climate for Japanese firms
Authorities of Ho Chi Minh City had a roundtable with Japanese businesses on December 14 to tackle difficulties facing the firms and share information about the southern economic hub’s investment cooperation demand.
Chairman of the HCM City People’s Committee Phan Van Mai said such a meeting has been held for 22 times so far. Aside from tackling difficulties and obstacles, local officials also wish to listen to businesses and investors’ feedback and suggestions so as to create a favourable policy environment for economic, investment, and trade cooperation.
As Vietnam and Japan recently upgraded bilateral relations to a comprehensive strategic partnership after 50 years of diplomatic ties, discussing development orientations is a timely step to help implement the two countries’ cooperation framework in the new period, he noted.
Japanese Consul General in HCM City Ono Masuo said that the year 2023 marks an important and special milestone in the Vietnam - Japan relations as seen in many exchanges, high-level meetings, and the upgrade of bilateral ties to the comprehensive strategic partnership for peace and prosperity in Asia and the world. The two countries are also preparing to carry out the Vietnam - Japan Joint Initiative in the fields of innovation, digital transformation, and consolidation of supply chains, including developing supporting industries and a skilled workforce to ensure production stability.
Japanese businesses and investors are highly interested in the National Assembly’s Resolution 98/2023/QH15 on piloting some specific mechanisms and policies for the development of HCM City, he said, noting that they hope it will support the dynamic and pioneering development of the city, an important contributor to the Vietnamese economy.
Mizushima Kozo, Chairman of the Japanese Chamber of Commerce and Industry in HCM City (JCCH), said with 1,053 members, the JCCH now has the third largest membership among 100 overseas Japanese business associations. Its membership has doubled over the last 10 years, showing HCM City’s attractiveness to Japanese businesses and investors.
He cited a recent survey conducted by the JCCH as showing that Vietnam ranks second, after the US, in terms of the development potential index with 90% of the interviewed businesses saying they want or plan to expand operations in the time ahead.
Pham Trung Kien, Deputy Director of the municipal Department of Planning and Investment, said HCM City is currently home to 12,300 foreign investment projects totalling US$57.25 billion in capital. With US$5.7 billion, Japan accounts for nearly 10% of the total foreign investment, ranking third.
The fields recording much Japanese investment include processing - manufacturing, wholesaling, retailing, automobile and motorcycle repair, real estate, science - technology, and information and communications.
To create optimum conditions for investors’ activities, HCM City has unceasingly reformed administrative procedures and boosted information technology application to improve transparency. It has also worked to eliminate unnecessary administrative procedures and business conditions, stayed creative and flexible during policy implementation, and increased dialogue with businesses, according to the official.
