High-level meeting of the Joint Committee to evaluate the final term of the Vietnam-Japan Joint Initiative

>Overview of the meeting. Photo: Duc Trung (MPI)

In his opening speech at the meeting, Minister of Planning and Investment Nguyen Chi Dung said that since 2014, Vietnam - Japan has upgraded their relationship to an extensive strategic partnership for peace and prosperity in Asia. That relationship is increasingly strengthened, developed and is at its best moment ever.

As a trusted strategic partner and the most important economic partner, in the first 11 months of 2017, Japan returned to first place among countries and territories investing in Vietnam with 8.94 billion USD, accounting for 27% of total investment capital, accumulated to the end of November 2017. Japan is the second largest investor with 3577 projects. Total registered capital is more than 49 billion USD. Japanese investors' capital sources are considered to be of high quality, having many positive impacts on socio-economic development throughout Vietnam's provinces.

Over the past 20 years, Japan has always been the largest donor to Vietnam with a total ODA capital of about 2,500 billion Yen (25 - 27 billion USD), mainly for infrastructure development. The Vietnam - Japan joint initiative with the goal of improving the investment - business environment and enhancing Vietnam's competitiveness has been going on for more than 14 years. Many of the proposed contents have been absorbed by Vietnamese agencies and have contributed significantly and importantly to improving the investment environment.

Minister of Planning and Investment Nguyen Chi Dung spoke at the meeting. Photo: Duc Trung (MPI)

Minister Nguyen Chi Dung highly appreciated the spirit of cooperation and effective work of the working groups. The Joint Initiative Phase 6 action plan includes 7 groups of issues, with 32 items. After 16 months of implementation, the Vietnam-Japan Joint Initiative phase VI has been successfully completed, most of the contents mentioned in the Plan have been implemented well and on schedule.

In recent times, the Government of Vietnam has focused on directing the implementation of many solutions to reform administrative procedures, improve the business investment environment and enhance competitiveness, especially in areas directly related to people and businesses such as taxes, customs, social insurance, credit, land, construction, establishment and dissolution of businesses, investment procedures, access to electricity... According to the Business Environment Report 2018 (Doing Business) announced by the World Bank, Vietnam is ranked 68/190 economies, up 14 places compared to 2017. Vietnam's legal system is continuing to be improved in the direction of being more transparent, clearer, more accountable and easier to enforce, in whichThere is a significant contribution from the Vietnam - Japan Joint Initiative.

Evaluating the results of the Vietnam-Japan Joint Initiative Action Plan Phase VI, Mr. Do Nhat Hoang, Director of the Foreign Investment Department, Ministry of Planning and Investment, said that after 16 months of implementation, the two sides held 28 dialogues between relevant Vietnamese agencies and the Japanese side to exchange and discuss the content of the Action Plan. Many constructive policy recommendations from the Japanese side have been absorbed or noted by relevant ministries and branches on the Vietnamese side, and continue to be researched to report to competent authorities for consideration in the process of perfecting laws and policies, as well as implementation.

According to the assessment results of the Vietnam-Japan Joint Initiative Joint Committee, out of a total of 32 items mentioned in the phase VI action plan, 26 items have been well implemented or are being implemented and only 6 items have not been implemented. Of the 26 items mentioned above, 19 items have been implemented well and on schedule, 7 items are being implemented but behind schedule. Well-completed items include issues related to services, support for small and medium-sized enterprises, logistics-transportation services, and labor. 07 items that are being implemented but are behind schedule related to groups of labor issues and 06 items that have not been implemented related to salary issues are regulations for foreign investors in the Investment Law,Enterprise Law, Land Law and other laws related to investment, business, and pharmaceutical distribution industry will continue to be discussed by the two sides in the near future.

Responding to the results from the Vietnamese working group, Mr. Nguyen Hoa Cuong, Deputy Director, Department of Enterprise Development, Ministry of Planning and Investment said that the Law to support small and medium-sized enterprises was passed by the National Assembly of Vietnam on June 12, 2017, currently ministries and branches are developing guiding decrees. To support Vietnam, the Japanese side is implementing business training courses of the Vietnam Human Resource Cooperation Center (VJCC), collecting information, conducting investigations to determine the strengthening of industrial development foundations and planning to organize seminars to support small and medium-sized enterprises.

To develop small and medium-sized enterprises and micro-enterprises in Vietnam, it is necessary to introduce large-scale and effective policies, specifically capital support to expand investment, transfer technology, train human resources, and do business of small and medium-sized enterprises, etc. is very important. Efforts so far to strengthen cooperation and linkages between businesses, such as organizing business networking sessions, exhibitions, etc., all have limits and require state policy support for small and medium-sized enterprises. Developing indigenous small and medium-sized enterprises will increase the rate of domestic supply, improve price competitiveness and contribute to the further development of Vietnam - Japan economic relations.

Evaluating the regulations for foreign investors in the Investment Law, Enterprise Law, Land Law and other laws related to investment and business, Mr. Quach Ngoc Tuan, Deputy Director of the Legal Department, Ministry of Planning and Investment said, this is a group related to the scope of state management of 5 Ministries: Planning and Investment, Natural Resources and Environment, Industry and Trade, Science and Technology, State Bank. According to the action plan, the issue of ensuring business investment in case of changes in law, applying the provisions of Circular No. 23/2015/TT-BKHCN on import of used machinery and regulations related to import and purchase activities of foreign-invested enterprises is being implemented. Procedure itemsc Adjust the Investment Registration Certificate in case members and shareholders do not fully contribute charter capital; The right of enterprises to lease land in industrial zones has been made with a one-time payment; Documents and documents that must be submitted and presented during the implementation of administrative procedures for investment and business have not yet been started.

Speaking at the meeting, co-chairman of the Vietnam - Japan Economic Committee Kuniharu Nakamura thanked the contribution of the Ministry of Planning and Investment in recent stages of the Vietnam - Japan Joint Initiative. Proposing the content for the Phase VII Action Plan, Mr. Kuniharu Nakamura said that to develop the economy, Vietnam needs to pay special attention to productivity issues, the important role of private enterprises, infrastructure system development and judicial support. Mr. Kuniharu Nakamura hopes that the Vietnamese Government will implement medium and long-term industrial development policies and need to develop policies to support industries. Besides, policy information is an important factor for foreign businessesi, including Japanese businesses, are interested in investing in Vietnam.

Signing ceremony of final evaluation minutes of the Vietnam-Japan Joint Initiative phase VI. Photo: Duc Trung (MPI)

At the meeting, the two sides agreed in principle to continue to cooperate and implement phase VII of the Vietnam-Japan Joint Initiative with new approaches and implementation methods consistent with reality. In addition to issues of concern to Japanese businesses, phase VII needs to address macro issues associated with major, feasible policy recommendations, contributing to improving Vietnam's investment environment, further promoting Japanese investment in Vietnam and strengthening the comprehensive strategic partnership between the two countries./.