At the Vietnam Business Administration Forum held yesterday in HCM City, foreign investors said that Vietnam needs to upgrade the business administration capacity to create better belief for foreign investors and increase its competitive strength in attracting FDI.
Steve Farrer, senior advisor of World Check corporate consulting service provider said that US and European companies are now more cautious in overseas investment decisions and pay attention to corporate administration capacity in a market before making investment decisions.
He said that to attract foreign investors Vietnam need to meet international standards. At this time, the world’s FDI flow is falling sharply so developing countries need to compete to attract the capital source.
In a statement, Philip Armstrong, head of International Finance Corp’s Global Corporate Governance Forum said that the global economic crisis made FDI supply slump strongly in many developing countries including Vietnam, and investors are forced to halt or cancel registered projects.
Vietnam last year wooed $64 billion of pledged FDI but the actualised capital reached only $11.5 billion, he reported.
In the first nine months, the country’s FDI inflow was recorded at $12.45 billion from newly licensed projects and others increased in capital size, declining 78.6 percent year-on-year, according to the Ministry of Planning and Investment’s Foreign Investment Department.
As stated by Farrer, Vietnam is competing strongly with China, India and other developing countries in foreign capital attraction.
Meanwhile, Armstrong told Saigon Economic Times Online that Vietnam needs to make investors feel that it is an ideal destination where their investment capital can bring in profits by upgrading the business administration.
Tony Burchill, Australia’s senior trade commissioner to Vietnam said that the good administration means transparency. Any foreign investor to Vietnam also expects in necessary transparency to save business costs and turn out goods with competitive prices and operate in long term.