Bloomberg lauds Viet Nam's business-friendly environment
HA NOI — Viet Nam hosts Southeast Asian leaders this week as chair of their 10-nation bloc, shining a spotlight on the political and economic stability that prompted Intel Corp and Toyota Motor Corp to increase investments (in the country), says Bloomberg. Bloomberg.com, one of the most visited financial sites on the web, quoted Nick Jacobs, Intel's regional spokesman, as saying that Santa Clara, California-based Intel, the world's biggest chip manufacturer, is scheduled to open a US$1 billion testing facility in HCM City this year that will employ about 4,000 people. Intel chose Viet Nam because of its proximity to customers, reliable power and water supply, and skilled workers.
"Viet Nam is a country which is very committed to education, that gives us confidence we will continue to attract the talent we need for long-term success," he said.
Toyota produced 28,000 vehicles in Viet Nam last year, up from 18,000 in 2007, spokesman Paul Nolasco said. The Toyota City, Japan-based company has 1,300 employees in Viet Nam, more than double the number in 2005, he said.
Nolasco added, "Toyota recognises not only the potential growth of that market but the potential role the Vietnamese economy can make in broader Southeast Asia."
According to Bloomberg, Viet Nam drew 13.5 per cent of the Association of Southeast Asian Nations (ASEAN)'s foreign direct investment pool in 2008, up from 4.4 per cent two years earlier.
And its allure may be rising, judging from a December survey by the American Chamber of Commerce in Shanghai, China. Viet Nam is the preferred destination for businesses looking to relocate from China, according to the report. "A lot of companies from a strategic standpoint are looking at how to set up a production facility within ASEAN," said James Lockett, a Ha Noi-based lawyer with Baker & McKenzie LLP and a board member of the American Chamber of Commerce in Viet Nam. " In a lot of product areas, Viet Nam looks very, very attractive for people who are doing that."
Bloomberg added, Viet Nam's economy expanded 5.2 per cent last year, the most in ASEAN, which has signed free-trade accords with China, Japan, the Republic of Korea, Australia and New Zealand. The deals give companies access to those countries and the ASEAN member states of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. —VNS