Seeking market diversification
Mme. Huynh Thi Nhan, vice chairwoman of HCM City
People's Committee, will lead an investment trade and tourism
promotion mission to Belgium, Germany and the UK on
November 2-14. Here is an interview with Mdm. Nhan about the
trip.
Why does your mission choose to visit
Belgium, Germany and the UK?
The EU has long been a major market and
investor of Vietnam and HCM City. Meanwhile,
Belgium, Germany, the UK and France are
Vietnam's leading EU investors and trading
partners. As we visited France a short time ago
at the invitation of the French side, now we
make a trip to these three countries.
Could
you be more specific about your
mission's main goals?
Given the course of globalization and
integration, market diversification is a must. We
have to form trading and investment
partnerships with countries worldwide. Alongside of the United States
and Japan, the EU is where HCM City can seek more potential business
opportunities. But we must first be aware of what our partners need and
interest in regarding trade and investment, and consequently, introduce
to them what we have that most suit their needs.
What will your mission introduce to the hosts?
We have in our luggage HCM City's important projects that call for foreign
investment, as well as investment priorities, and investment and tax
policies. The investment projects are not chosen at random but in way
that takes into account these EU countries' financial and technical
capabilities. We will also introduce Vietnamese goods which may suit
European markets such as garments, software and tourist products.
The destinations of your mission are often considered
demanding markets with high quality standards.
Do you think
the Vietnamese goods to be introduced can make their way to
these countries?
Nowadays, trading must be diversified. In my opinion, we have to find
ways to win both easy and hard to please markets.
We all know that the EU in general is a difficult market for Vietnamese
goods. However, I do think that there are areas we can penetrate into.
For instance, some British customers are interested in Vietnamese
interior decoration designs and furnishings. Although Vietnam is an Asian
culture, in this respect, our products can be favored by European
customers. If Vietnamese manufacturers conduct careful research on
European tastes, I believe our goods, say, handicrafts and fashionable
garments, can find a place this fastidious market.
The HCM City government has vowed to promote trade and
investment in the city. This year, in addition to your trip to
Europe, others have also served that purpose.
What makes
them different from those held in the previous years?
They have been carefully planned to exploit every moment for that
purpose. Although our mission has a tight schedule, we know that the
time is limited, and we won't be able to present all about HCM City's trade
and investment potential. Therefore, aside from printed materials, we
also prepare packaged information in CD-ROM disks. We will also
introduce some websites so that the hosts can make follow-ups
afterwards if they want.
Members of some successful foreign companies in HCM City will join our
mission. They will participate in meetings and workshops with the hosts
and share experience with them. I think they are convincing examples to
potential investors.
HCM City has vowed to improve its foreign investment
environment. How far has this effort gone to date?
The municipal authorities have tried their utmost to simplify investment
procedures. We have lowered land rent to the lowest level possible.
Previously, investors had to develop projects on their own, from land
compensation to site clearance and infrastructure building. Currently, in
encouraged sectors, these steps are taken by the State. We even think
of building factories in IPs so that investors can hire them and start
production immediately.
Do you think that HCM City has created a level playing field
for foreign investors ?
Although we have tried our best, I think there are rooms for
improvements. For instance, personal income tax should be fairer for
everybody. The tax is now subject to an ordinance issued by the
standing committee of the National Assembly, but we should have a law
in which the taxable income should be higher while tax rates should be
lower. Coupled with that, effective enforcement of tax payment must be
implemented.
By Trong Vu - The Saigon Times Weekly - November 02, 2002.
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