He was peaking at a congress to establish the Business Association of Overseas Vietnamese (BAOOV) in Ha Noi. It was attended by more than 200 Viet Kieu from 40 countries and territories around the world.

Khiem highlighted the great potential of Vietnamese businesses abroad. He said they were significant in helping the development of the nation as well as enhancing co-operation and friendship between Viet Nam and other countries.

"The association’s establishment is the first important step to mobilise the contribution of overseas Vietnamese enterprises throughout the world to the common development of the country," he said.

Khiem re-affirmed the incentives offered by the Party, State and Government to overseas Vietnamese, who, he said, were an indispensable part of the Vietnamese community and a valuable human resource.

The association’s charter aims to create an active environment for co-operation and exchange of information on economy, trade, science and technology between domestic and overseas Vietnamese enterprises.

The association will provide members with information on domestic and international markets, and forecasts about changes in policies and the business environment.

The charter outlines the association’s role in assisting domestic and overseas Vietnamese enterprises submit petitions and proposals to domestic authorities and Vietnamese agencies overseas.

President of the Viet Nam Chamber of Commerce and Industry Vu Tien Loc said he hoped the association would not only boost the country’s export and investment activities, but create a distribution network for Vietnamese goods in international markets.

Nicolas Nguyen from Australia expressed his concern about current administrative and business procedures.

"We appreciate the central incentive policies on attracting overseas Vietnamese enterprises to invest in domestic projects," Nguyen said, "However, project implementation procedures at local levels is not really clarified."

"Newly returning Viet kieu usually are at a disadvantage in dealing with administrative formalities. Some issues obstruct overseas businesses even though they are not important in the view of local authorities," he added.

Canadian Pham Van Thanh said the association should learn from the experiences of overseas Vietnamese business associations.

"Vietnamese business associations world-wide have not developed strongly as they have not been able to create favourable investment in Viet Nam for members," he said.

"Lack of action and professionalism and a lack of capital resources and connections between associations are the main reasons for the inefficient activities of overseas Vietnamese business associations. "So I hope the new association can overcome these shortcomings and take the lead in helping overseas Vietnamese businesses connect with each other," Thanh said.

A businessman from Hungary, Pham Ngoc Chu, said he looked forward to the association providing a long-term strategy to export Vietnamese goods to the world.

"I am sure that most Vietnamese goods qualify for export, especially to European markets," said Chu. "However, there is no attractive packing or, more importantly, a good marketing strategy," he said.

United States lawyer Le Thi Huyen Trung, suggested the association research and apply New York’s policies for attracting investments. Trung said the creation of a good environment for international trading and practical assistance to overseas and international investors, such as providing visas conveniently and quickly, would help attract more investment.

According to Nguyen Thanh Son, Deputy Foreign Minister and chairman of the State Committee for Overseas Vietnamese, Viet kieu have invested in more than 3,000 domestic projects worth a total of USD2 billion.