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Japan to increase investment in Vietnam

HANOI - Japan, currently Vietnam's top trade partner, is planning to increase its investment in Vietnam in the near future, the chairman of the Japan Federation of Economic Organizations (Keidanren) says.

"Vietnam has made amazing progress in creating a more attractive investment environment," Takashi Imai told a news conference in Hanoi on Tuesday. He cited the Vietnamese government's enactments of the Enterprise Law and the Law on Foreign Investment as making the investment climate more open to foreign investors.

However, the investment climate in Vietnam still needs improvement in some areas, he said, calling for Vietnam to make bold changes to the Foreign Investment Law to attract more foreign investors. Imai added that Vietnam should also fully tap its high-quality labor force, a competitive advantage that should help to lure a greater number of foreign investors.

Imai also said his government and the Vietnamese government are negotiating an agreement on trade and investment. The agreement will see Vietnam granting Japanese businesses preferential treatment when investing in the country, while Japan will advise Vietnam on solving domestic corporate problems.

"This autumn, Keidanren's Japan-Vietnam Economic Committee will join forces with Vietnam's Ministry of Planning and Investment to hold a seminar in Ho Chi Minh City to survey businesses' opinions on their existing problems," the Keidanren chairman said.

Takashi Imai led a Keidanren delegation on a visit to Vietnam from Monday to Wednesday with the goals of gaining a clearer understanding of the country's economic situation and promoting Japan's ties with Vietnam's business community. The Keidanren businessman discussed with Vietnamese leaders ways to raise Vietnam's competitive edge and make Prime Minister Junichiro Koizumi's initiative for a comprehensive economic coalition between Japan and the Association of Southeast Asian Nations, of which Vietnam is a member, a reality.

Keidanren committed to helping Vietnam build up its private sector by sending experts to provide training to Vietnamese entrepreneurs. The agency has offered scholarships to talented young Vietnamese students, with the first scholarships presented to 36 students in Hue and Da Nang Universities on this occasion.

(Asia Pulse/VNA)