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NEWS UPDATES Asean Affairs        2  May 2011

Vietnam urged to change investment policies

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There is a clear tendency of shifting investment capital flow from regional countries, which should be seen as a great opportunity for Vietnam to grab and improve the quality of the foreign direct investment (FDI).

Nobuo Kato, an analysis expert from the Japanese Ministry of Agriculture, Forest and Fisheries (MAFF), said on Dau tu that many Japanese enterprises have contacted him, saying that they are seeking places to set up food processing factories, which will provide products to the Japanese market after the earthquake and tsunami in March 2011. The destinations they are considering are China, Thailand and Vietnam.

As for Vietnam, the biggest problem for investors is seeking land areas large enough to carry out agricultural production with industrial and advanced technologies.

“We have contacted Vietnamese partners, but the small scale of Vietnam’s agriculture development proves to be unsuitable to big scale production,” he said.

However, Japanese investors cannot wait for the amendment of policies to begin making investments. Some projects on food processing in small scale have been run by Japanese investors. Some investors are considering building processing factories in Vietnam together with developing material areas in Laos or Cambodia, so as to take full advantage of the conditions in the regional countries.

“Vietnam needs to pay more attention to develop the infrastructure in rural areas in order to grab the opportunity,” he said.

The name “Vietnam” has also been mentioned by Japanese investors recently when they consider making outward investments. However, Vietnam has to compete with many redoubtable rivals to become the destination of the investors.

To date, Vietnam has been highly appreciated by Japanese companies in the information technology and software outsourcing sector. However, according to Dau tu, some disadvantageous information has appeared which may lead to the fact that Vietnam would lose good outsourcing contracts.

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AseanAffairs   04 January 2011
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It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


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