JCCI Looks to Further Strengthen Cooperation with VCCI for Better Business Environment

11:52:50 AM | 15/10/2019

Vietnam has a solidly developed economy, with the fastest growth rate in ASEAN (7.1% in 2018). And, according to the World Bank Doing Business Report, Vietnam’s business environment ranked 68th in 2018, an increase of 14 places over 2017.

In 2017, foreign direct investment (FDI) in Vietnam reached US$36 billion, of which Japan accounted for a quarter. This outcome reflected high expectations of Japanese businesses.

We see three strong points of improving Vietnamese corporate competitiveness: Ideal population structure mainly constituted by young generation; skillful labor with relatively low-cost; and Government’s commitment to sustainable development.

However, Vietnam also has concerns about stagnant development of supporting industries, resulting in high prices of domestic goods and services and leading Vietnam to the so-called “middle income trap” in the future.

On behalf of JCCI, I would like to make some recommendations such as strengthening value chains from the perspective of improving productivity and competitiveness (developing supporting industries) and promoting public–private partnership (PPP) to optimize risks, in which private investors play a leading role.

In addition, while opportunities generated by so called Industry 4.0 for ASEAN countries are increasing, we believe that Vietnam also needs to invest in training high quality human resources that lead in technological innovations.

On the other hand, in order to promote sustainable investment, Vietnam needs to make constant efforts to simplify, rationalize and enhance transparency of daily operations of all aspects of business like taxation. This is also a common perception of associations and chambers of commerce and industry.

In the coming time, JCCI wants to further strengthen cooperation with VCCI on activities aimed at improving the business environment in Vietnam in order to facilitate companies of the two nations to expand business, trade and investment.

Specifically, we look forward to further cooperation in information sharing, exchange of ideas through seminars, policy recommendations to the Government and executive agencies of Vietnam so as to improve the legal system related to business such as tax, labor and law.

Mr. Miura Nobufumi, Chairman of Japan Chamber of Commerce and Industry in Vietnam ( JCCI)