Hirotaka Yasuzumi, managing director of Jetro in Ho Chi Minh City. (Photo: fbnc.vn)
Vietnam needs to overhaul its economic policies, cut corporate income tax and better the business environment to facilitate foreign-invested and domestic businesses, said Hirotaka Yasuzumi, managing director of the Japan External Trade Organization (Jetro) in Ho Chi Minh City.
At a CEO Club-held seminar on the Vietnamese economy late on Wednesday, Mr. Yasuzumi said that cumbersome administrative procedures and a gap between the making and execution of policies have hindered corporate operations.
He spoke out that enterprises in Vietnam are paying unofficial fees, which eat into their income. Thus improving the business environment is a prerequisite for economic development.
He noted that Vietnam has increasing opportunities when a number of Japanese companies are shifting investment from China to Vietnam and other ASEAN countries as labor costs are rising in China.
Vietnam, therefore, needs to issue friendly policies to attract foreign investors to increase added value and create more jobs, the said.
This is not the first time Jetro Vietnam has pointed out problems related administrative procedures, tax and unofficial fees of the Vietnamese investment climate.
Chief Representative of the Japan External Trade Organization (JETRO) Hanoi Atsusuke Kawada earlier cited a survey conducted with Japanese firms doing business in 15 countries as saying that Vietnam’s out-of-date and non-transparent legal framework is the largest obstacle for them.