Vietnamese market attractive to foreign businesses

Hanoi (VNA) - Vietnam continues to be an attractive market for foreign investors as the number of foreign business delegations visiting Vietnam has suddenly increased during the last few months, according to the Vietnam Chamber of Commerce and Industry (VCCI).

The VCCI branch in Ho Chi Minh City alone received an average of five
delegations each month.

The majority of foreign enterprises came from Asia-Pacific countries,
including the Republic of Korea , Singapore , Japan , China ,
Australia and Malaysia . They visited Vietnam to seek investment
opportunities in the food processing industry and in real estate.

Vietnam sees massive potential for cooperation with other countries
within the Asia-Pacific region, due to their favourable geographic locations
and cultural similarities.

In addition, several delegations from African countries, the UK, Italy,
the Netherlands, Sweden and the US, mainly operating in finance and banking,
consumer goods and shipbuilding, not only sought partners but also spent
time negotiating contracts governing the import of agricultural products,
households utensils, information technology and fine arts from Vietnam.

The Italian Chamber of External Trade (ICE) President Umberto Vattani, who
joined an Italian business delegation to seek investment and cooperation
opportunities in Vietnam from November 4-7, said that Vietnam , with its
increasing importance in Asia and its active participation in the global
economy, together with its huge untapped potential, offers fantastic
investment opportunities for Italian enterprises.

In an article reviewing the 20-year implementation of Vietnam 's Foreign
Investment Law (1988-2008), Managing Director of the US Chamber of Commerce
in Vietnam Adam Sitkoff wrote that US businesses have kept a close eye on
Vietnam , with some even considering the 85 million-strong country the
world's most attractive emerging market.

According to a survey conducted by the Japanese Trade Promotion
Organisation, Japan has the largest number of enterprises that have
expanded the scope of their operations in Vietnam , with 92.6 percent of
production firms and 88 percent of non-production companies having done so.

In the 2008 Business Report recently released by the World Bank, Vietnam
ranks 91 out of 178 countries and territories worldwide in the facilitation
of its business environment, leaping three places against last year and 13
places against 2006's position.

In the context of the continuing global financial crisis, Vietnam was
still evaluated as the best long-term production venue in Asia . The
country has experienced tempestuous flows of foreign investment with 953
projects worth a total of 58.3 billion USD licensed during the first ten
months of this year.

Vietnam's improved investment and business environment has resulted from
efforts made by the Government, ministries and localities to enhance law
enforcement and administrative reform, as well as increasing the frequency
of dialogues to address difficulties facing the country's enterprises.

However, poor infrastructure, the shortage of skilled and qualified human
resources and complicated administrative procedures are hindering the
progress of the country's investment attraction.-Enditem