In­ter­na­tional cor­po­ra­tions call for ad­min­is­tra­tive re­forms

Ha Chan Ho, strate­gic ad­vi­sor for Sam­sung Elec­tron­ics Vieät Nam

Outlook - - CONTENTS - By Thu Traø & Vuõ Hoa

While im­prove­ments have been made in the lo­cal in­vest­ment en­vi­ron­ment, more needs to be done to en­sure trans­parency and cut out the red tape to at­tract over­seas com­pa­nies to Vieät Nam.

While im­prove­ments have been made in the lo­cal in­vest­ment en­vi­ron­ment,

and for­eign firms are show­ing in­creased con­fi­dence in the mar­ket, more

needs to be done to en­sure trans­parency and cut out the red tape to at­tract

over­seas com­pa­nies to Vieät Nam. Thu Traø and Vuõ Hoa in­ter­view.

We are sat­is­fied about Vieät Nam's in­vest­ment cli­mate. We be­gan our in­vest­ment in the coun­try in 2007 and then the pro­duc­tion started from 2009. At that time, our in­vest­ments fo­cused on man­u­fac­tur­ing prod­ucts such as fixed phones. But the mar­ket shifted very quickly to smart­phones. We also changed our assem­bly line from pro­duc­ing fixed phones to smart­phones. We came to know that the Viet­namese work­ers ex­cel in as­sem­bling smart­phones. That's why we in­creased our in­vest­ment on a large scale. Right now, the to­tal regis­tered cap­i­tal for Sam­sung Elec­tron­ics is about US$2.5 bil­lion for Baéc Ninh Prov­ince, $2 bil­lion for Thaùi Nguyeân Prov­ince, $1 bil­lion for Sam­sung Dis­play and $1.5 bil­lion for Sam­sung Elec­tron­ics in HCM City. Hence, the to­tal in­vest­ment is $7 bil­lion.

Ev­ery coun­try can­not be free from com­plaints. To make Vieät Nam more com­pet­i­tive, the coun­try needs to im­prove ad­min­is­tra­tive pro­ce­dures and build more in­fra­struc­ture. The coun­try should also in­crease trans­parency. The Vieät Nam Business Fo­rum (VBF) meets twice a year with the par­tic­i­pa­tion of donors and in­vestors. Be­fore the meet­ing, we have to col­lect the views of all com­pa­nies and then list the sug­ges­tions to im­prove the in­vest­ment cli­mate. So, Vieät Nam's Gov­ern­ment should look at the sug­ges­tions and con­tinue to make ef­forts to im­prove its business en­vi­ron­ment. I be­lieve that the in­vest­ment cli­mate of Vieät Nam will im­prove if the Gov­ern­ment acts on the sug­ges­tions.

At Sam­sung, we have also faced dif­fi­cul­ties. For in­stance, we in­vested in the north­ern prov­ince of Baéc Ninh and wanted to build a dor­mi­tory for work­ers in the same area. How­ever, we were un­able to do this as the Viet­namese law doesn't al­low a dor­mi­tory to be built in the same area as fac­to­ries. We raised the is­sue many times and the Min­istry of Plan­ning and In­vest­ment changed the in­vest­ment law, al­low­ing us to build a dor­mi­tory in the same area.

In Baéc Ninh, we built a dor­mi­tory, while in Thaùi Nguyeân, we built a fac­tory as well as a dor­mi­tory in the same area. Min­is­ter of Plan­ning and In­vest­ment Buøi Quang Vinh vis­ited Thaùi Nguyeân some­time ago and per­son­ally kept track of the con­struc­tion.

We al­ready have made the largest for­eign di­rect in­vest­ment in Vieät Nam. We will con­tinue to op­er­ate ac­cord­ing to the in­vest­ment law in the coun­try. Cer­tainly, we would raise the in­vest­ment if it is needed. We be­lieve that our op­er­a­tions in Vieät Nam will be very sat­is­fac­tory and suc­cess­ful in the com­ing years be­cause of sev­eral fac­tors that in­clude skilled labour and a rel­a­tively good in­fra­struc­ture.

Some com­pa­nies have com­plained about the Viet­namese work­force. I be­lieve that it de­pends on what kind of work­ers they want to hire. If they want to hire highly skilled work­ers, they need to train them on the assem­bly line. For ex­am­ple, when we hired work­ers in Vieät Nam, they did not have much ex­pe­ri­ence with work­ing on this kind of elec­tronic assem­bly line. We brought train­ers from South Korea and trained them in an or­gan­ised man­ner. Then they worked on our assem­bly line.

Even the work­ers with higher skills need to be trained. We have a train­ing cen­tre in Haø Noäi. We trained them there and sent them to South Korea for fur­ther train­ing for sev­eral months. Com­pa­nies need to train con­tin­u­ously. Com­plaints from some com­pa­nies mean that they did not give any train­ing to the work­ers.

Lawrence Peh, gen­eral di­rec­tor/CEO of Malaysian firm ParkC­ity Hanoi

Vieät Nam's in­vest­ment cli­mate is di­rectly im­pacted by its eco­nomic per­for­mance and sta­tus. With many key in­gre­di­ents such as a size­able young and hard­work­ing pop­u­la­tion, high lit­er­acy rate, abun­dant nat­u­ral re­sources and fer­tile agri­cul­tural land, the Viet­namese econ­omy is def­i­nitely

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