ASEAN KEY DESTINATIONS
Foreign firms eager to invest in Vietnam
But their representatives expect a concerted effort to tackle major macro-economic obstacles. "Viet Nam's success in attracting foreign investment has largely been built on the expectation of economic and political stability," American Chamber of Commerce, Amcham, chairman Hank Tomlinson told the forum - a prelude to the yearly donor Consultative Group meeting. Unfortunately, the government's approach to economic and monetary policy had also raised concern, he said.
Amcham, together with other investor representatives, is worried about the falling value of the dong and a perceived lack of an effective policy to control inflation. Street vendors traded the US dollar at between VND21,400-21,450 yesterday, up VND100 against late last week.
The nominal depreciation of the currency through five deprecations since December 2008 is 11 percent.
But the dong has fallen 36.8 per cent in value during the past three years when measured against the consumer price index.
Inflation of 7 per cent was expected while the target for economic growth was 7.5 per cent. International Monetary Fund Viet Nam representative Benedict Bingham told Viet Nam News the Government should make macro-economic stability - rather than frequently shift between growth and stability - its first priority.
The forum listed a variety of worries for international enterprises including: An inefficient state-owned system;
Corruption and a conflict of interest in the state-owned sector; Inadequate infrastructures; A lack of transparency and inadequate governance; and Bureaucratic investment licensing procedures and the protection of intellectual and property rights.
Vietnamese government representatives said the contribution of the international enterprises was highly appreciated and their proposals to improve the efficiency of doing business in Viet Nam would be considered.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below