Of the US$9.5 billion of foreign direct investment injected into Viet Nam in the first nine months this year, up to 50% came from Japan.

The Radio said Japanese investors are operating over 1,700 projects in Viet Nam, including Nghi Son Refinery Plant and Bridgestone tyre factory. Noticeably, Japanese businesses have begun to invest in small and medium-sized projects in Viet Nam.

Compared to China, Vietnamese labor costs are two to three times cheaper, said the Head of the Economic Department at the Russian Academy of Sciences, Marina Tregubenko, when explaining why ‘Asian tigers’ as well as Western developing countries have chosen Viet Nam as their investment destination.

Strong industrial growth and young population have created a vast domestic market, she added. Foreign investors are starting to invest in upgrading road, air and maritime links and the country’s infrastructure.

Marina Tregubenko went on to say that Viet Nam has a legal system in favor of foreign investors. Other advantages include political stability and support from overseas Vietnamese people.

Growing magnet

Next week, a business delegation from Spain will come to Viet Nam and Thailand to seek investment opportunities from October 22-26.

The trip will be organized by the Spain’s Exporters Association of Agricultural Machinery, Components, Irrigation System, Livestock and Post Harvesting Equipment (Agragex) with 130 enterprises as members.

Another delegation of 250 Argentine businesses has registered to participate in a tour to Viet Nam at the end of this month to promote trade links between the two countries.

The delegation will be headed by Argentina’s Commerce Secretary Mario Guillermo Moreno and other officials.

It is expected that Argentina’s Federal Investment Council will lead another delegation of foodstuff processing businesses to Viet Nam in November.

In early September, US Trade Representative Ron Kirk led a business delegation to Ha Noi to send the message that the US expects to have greater role in Viet Nam’s economy. During that time, a survey conducted in Singapore by the US Commerce Department and US Chamber of Commerce Singapore revealed that up to 57% of questioned businesses said they would expand production in Viet Nam.

In mid-September, the visit by Germany’s Minister of Economy and Technology Philipp Roesler who was accompanied by representatives of 230 enterprises warmed up investment environment in Viet Nam. After his visit, other delegations from UK, France and Japan also came to Viet Nam to seek opportunities in such fields of finance, ports, energy and infrastructure. Chairman of Japan Chamber of Commerce an Industry (JCCI) Tadashi Okamura said that Japanese Government advocates stronger investment in Viet Nam.

Foreign investors are increasingly interested in Vietnamese market, Chief economist of Vinacapital Alan Pham recently told the newswire VnExpress. He said Viet Nam has a promising market with a population of nearly 90 million, cheap workforce and the country is now benefiting from foreign investors’ production reallocation trend.