The Vietnam Chamber of Commerce and Industry (VCCI) recently released a survey report stating that a survey of 1,609 foreign direct investment (FDI) companies from 49 countries showed that compared with 2007~2010, Vietnam’s foreign investment attractiveness is obvious decline. Currently, Vietnam has to compete not only with traditional rivals such as Thailand and Indonesia, but also with emerging countries such as Laos, the Philippines and Myanmar.
According to the report, FDI companies participating in the survey believe that the main reasons for the decline in the quality of Vietnam’s business environment are: first, unclear fees; second, complicated administrative procedures and legal regulations; third, poor quality of education and medical care; fourth, infrastructure relatively backward.
Yoshihisa Maruta, President of the Japan Business Association, said that as of May this year, there were approximately 1,319 Japanese companies investing in Vietnam, making Vietnam the second largest country with the largest number of Japanese Business Associations in ASEAN, second only to Thailand. However, Japanese companies’ dissatisfaction with Vietnam’s business environment is rising. According to a survey by the Japan External Trade Organization (JETRO), more than 60% of Japanese companies believe that many factors are hindering their production and operations in Vietnam, mainly including: excessive growth in labor wages, complex administrative procedures, unclear national policies, taxation The procedures are complicated, the legal system is imperfect, and the enforcement of laws is not open enough.
