~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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Vietnam a stable, promising market

HANOI - Foreign investors attending the two-day forum "Investing in Vietnam: Insights, Strategies and Prospects," have expressed their confidence in the country's investment environment. Many investors agreed that Vietnam is a safe and politically stable investment destination. The country has obtained steady economic growth rates in recent years and its government has improved the business environment, they said.

Director of the World Bank (WB) office in Vietnam, Klaus Rohland, told the forum that the WB is optimistic about Vietnam's gross domestic product (GDP) growth rate. He added that Vietnam should pay more attention to the quality of growth and map out a sustainable growth plan for the next five years after joining the World Trade Organization (WTO).

Contrary to sources who say Vietnam is on the threshold of inflation and the country's bad debts make up 70% of the total debt of the banking system, Citigroup country general director Charly Madan analyzed Vietnam's banking and finance market in a positive manner. He said the country's financial indicators are under control, with bad debts accounting for only 15-18% of the total. He also added that Vietnam is on the right track in rearranging its state enterprises, encouraging the development of private enterprises, pouring investment into building infrastructure facilities, raising consumption power and boosting exports.

Resident representative of the International Monetary Fund Susan Adams expressed her special interest in Vietnam's comparable advantages. She said Vietnam offers a market of 81 million people, ideal for any investor. Investing in Vietnam is a favorite solution for investors who do not want to risk all their money in the Chinese market. However, to make Vietnam a destination for those investors the Vietnamese government must bolster its renewal efforts. Speaking at the event, which closed in Hanoi on Wednesday, government officials pledged to do their best to create an attractive investment environment for direct and indirect foreign investors and a level playing field for domestic and foreign investors.

Minister of Planning and Investment Vo Hong Phuc told the forum that the dual electricity charge system will be removed so that domestic and foreign investors will pay the same charge rate in the near future. Telecommunication charges will be further reduced to equal the regional average by December next year. The minister also said that Vietnam advocates expanding areas that foreign investors are eligible to participate in. Investment licensing procedures will be further simplified he added.

Deputy Finance Minister Le Thi Bang Tam informed the participants that her ministry has been conducting tax reform toward the goals of simplicity, accuracy, quickness and transparency. The government encourages the equitization and listing of state enterprises, she said. The Finance Ministry will soon announce policies and regulations on the sale of shares to foreigners, the listing of foreign invested enterprises on the domestic stock market and the experimental issue of shares at overseas stock markets.

On Vietnam's push to join the WTO, Deputy Trade Minister Luong Van Tu noted that Vietnam has completed the eighth round of bilateral negotiations to be admitted to the world body. Accordingly, Vietnam has committed itself to implementing agreements on intellectual property, measures relating to investment and removing trade barriers once joining the organization. He said the country will make its policies transparent to partners within the framework of the WTO.

Asia Times - August 23, 2004.