Dong Nai Province has emerged to be one of the most attractive destinations for investors. However, apart from good prevailing conditions, investors also still encounter business operation troubles and difficulties. The following sub-articles are excerpted from investors in Dong Nai by Vietnam Business Forum Magazine.
Mr Takanori Yamashita – General Director of Fujitsu Co.
Vietnam is well-known for socio-economic stability and low labour costs but it is still facing up with several prevailing difficulties, especially in infrastructure and legal environment. In my opinion, Vietnam needs to further improve its telecommunication infrastructure because its telecom fees are still quite high compared with other countries in the region. In addition, shipping fees are also high while customs procedures need more modernisation. In spite of being free from customs checks, our company still needs staff and quite a large volume of time for this work. Hence, if e-customs is applied, our business must be improved. As for electricity, we cannot use unstable electricity currents provided by the national grid because highest precision is required by our products. We still have to use dynamos to power our factories although the oil price has increased.
For me, when enterprises make preparations for investment into Vietnam they should pay due attention to invested locations. The investment environment in Vietnam is generally improved but different regulations still exist here or there. What’s more, investors should also care about the environment issue because they have to be responsible for all treatments related to surroundings.
Mr Huang Ruey Der – General Director of Tainan
TaiNan is a strong fibre production company and is staffed by hardworking employees. Our premium products, services and ability to satisfy any requirements have won the faiths of our customers. At present, 30 per cent of product is bound for the domestic market and the remaining 70 per cent is destined for export. Our product output increased year after year but the domestic market cannot develop because of the slow growth of the garment and textile industry. In the coming time, we will boost sales in the Vietnamese market to half of our production because the potentiality of the Vietnamese yarn-dyed textile industry is huge.
At present, TaiNan has a dyeing workshop in Nhon Trach Industrial Park 2 and a quarter of its output is for the domestic market. In addition, our company has invested to develop 16 ha of land in Nhon Trach District to build two new workshops but our investment plan was delayed because of the shortage of the labour force.
So, in my view, the Vietnamese Government should have clear policies and cooperative attitudes to help enterprises when unexpected issues such as the emergence of recent worker strikes occurred. The untimely solutions of the local authorities are attributed to the escalation of worker strikes, which have seriously negative impacts on operations of existing enterprises and on attractiveness of Vietnam to future investors. Many bad agents took this occasion to abet workers to go on strike wrongfully.
Mr Tran Binh Sam, General Director of Taya
For me, the State should further improve taxation policies to encourage enterprises to fulfil their tax payment duties. Besides, guidelines and policies should be synchronised from central to local levels. Also, the tax payment balance work is so sluggish that our company faces up with difficulties in equitisation plan. In the meantime, we must host the general shareholder meeting and announce the listing plan by the end of this year. The final check for tax payment may last through this year.
Mr Yeh Sheau Yeh – Manager GM Office of Vedan Vietnam
Prior to arriving in Vietnam, we had surveyed several countries and found that their infrastructure and investment environment were better than Vietnam but we still chose this country where the investment policies were still not uniform and clear and the infrastructure was quite poor. At that time, the Vietnamese Government desired to attract investment and pledged to solve difficulties with Vedan. For the time being, investors have better conditions than us before thanks to superior investment policies, infrastructures and even legal bases.
The Vietnamese Government has made a lot of improvements, such as the “one door, one seal” policy to facilitate administrative procedures for investors. Besides, the Vietnamese Government as well as local governments organises regular meetings with enterprises to solve difficulties that other countries in the Southeast Asian region cannot do. Furthermore, the Vietnamese Government also sends investment promotion missions abroad in order to grasp desires and expectations of investors. In particular, difficulties and troubles are resolved at grassroots levels while legal decrees have also been sent onto the Internet.
Currently, the industrialisation and modernisation pace of Dong Nai Province is very fast but the infrastructure system has failed to keep track. In my point of view, apart from the electricity, water and traffic system, Dong Nai should pay full attention to other services like schools, hospitals and hotels to persuade new foreigners to set up long term resettlement plans in Vietnam.
After 10 years in Vietnam, Vedan has got familiar with Vietnamese customs, habits and administration styles and has gained the trust of customers to further push up Vedan. The Vietnamese economy is developing and Vedan wishes to go side by side with Vietnam in the philosophy of “Benefiting State– Benefiting Farmers– Benefiting Vedan.”
Mr Ruben Mannien – General Director of Nuplex Resins Co.
In initial years in Vietnam, we always received supports from the competent branches and devotions from Vietnamese employees. However, our company still comes across several difficulties: lack of skilled workforce (60 per cent of Nuplex Resins are engineers.) and non-Dong Nai residents, who don’t have fixed residence. Nuplex Resins recommends that if the State cannot build houses for workers, it should transfer lands for enterprises to erect houses for workers. The State should also develop scientist force before entering the AFTA.
Mr Kevin Chin – General Director of Fusheng Vietnam Co.
The current investment policies of Vietnam still have a lot of shortcomings while Fusheng Vietnam wants to invest in several regional countries and wants to become a holding company for subsidiaries in regional nations, the same way as several companies of Fusheng Group have done. This proposal of Fusheng Vietnam has been sent to the Vietnamese Government for over a half of a year but received no reply. The construction of a business office in Hanoi remains unlicensed. This is also a limit for Fusheng Vietnam’s development plan (Vietnam only allows land rent in industrial parks.)
Although its economy is growing very fast, the education and transport system fail to reach the development of the economy. If Vietnam can resolve these two sectors, its economy will develop more stably. Geographically, Vietnam lies in the centre of the ASEAN block and if its prevailing difficulties are removed, its economy will reach the level of top regional nations because Vietnam is always highly appreciated by influencing multinationals for its investment attraction for at least 10 years to go. This is also a factor Fusheng Vietnam wants to bring important business lines into the country.
Mr Bert Hung – General Director TUICO Vietnam Co.
In my opinion, the investment environment in Vietnam is better than many countries. Our company has operated in Vietnam for seven years and the difference in communicative languages is not a problem. The land clearance and compensation is too slow to meet the development requirements of enterprises, which always require a high punctuality. The State should take care of satisfactory land clearance for removed residents and build proper resettlement environment for them. Having a better life, they will abide by all State policies.
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