“Our investment plan in Vietnam has been delayed by six months due to due to complicated procedures,” complained Shigenobu Nagamori, President of Japanese Nidec Corporation.
He sees few changes in Vietnam’s administrative formalities in his second visit to the country, adding that Vietnam’s administrative procedure reform process seems to go quite slowly, compared to neighboring countries like China or Thailand.
“For example, it took me 25 minutes to complete entry procedures, although I was treated as a VIP,” he noted, adding that “we have planned to shut down several plants in China and Thailand to concentrate on Vietnam. However, project implementation has been slow due to the administrative problems.”
Besides, infrastructure has not met investors’ demand, particularly as more and more foreign groups are flocking to Vietnam with mammoth projects.
“We are also not satisfied with the stagnation in implementing investment projects, as it will badly affect production process and delivery time. In other regional countries where Nidec has made investment like China or Thailand, administration and taxation systems are very simple and clear for investors,” Nagamori added.
The firm targets to make Vietnam its second biggest investment destination just behind China, with plans to expand operations in Vietnam with an additional US$1 billion for 10 investment projects by 2010 in Ho Chi Minh City, the chairman revealed.
He said from now to 2010, the company will survey the business environment in northern provinces before pouring another US$500 million in the region.
“We may invest US$500 million more into the central region after the year of 2010, raising our total capital to the country to US$2 billion,” he stressed.
Nidec Corporation on Mar 1 inaugurated its first two electronic component factories in Ho Chi Minh City, two years after receiving investment license from municipal authorities.
The two facilities, capitalized at a combined US$50 million in the first phase, will produce hi-tech products mainly for export.
A large number of foreign companies see Vietnam as an appealing destination, influx of those from Japan has risen 5-10 per cent. He also said that other groups are eager to enter Vietnam.
However, he suggested that the country should have suitable policies; upgrade infrastructure and accelerate the administrative reform to spur foreign investment flow. (Youth, Vietnamnet)
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