Attracting investment, creating more power to protect the country
Deputy Phan Van Quy in an interview
* In a position of a deputy in Vietnam National Assembly as well as a business owner, what do you expect in this amendment of the Law on Investment?
- In my opinion, this is an opportunity, I would not like to say the last but near the last. If we do not have a breakthrough in constructing and implementing the Law on Investment to close to market, with the innovation in parallel with the region then opportunities to grow will be very little. So I expect a lot with this amendment.
The Law should clarify clearly policies to support investment to leverage investment. For example, recently, HAGL Group has invested and made large profits from agriculture in Laos, or TH True Milk Corporation is also investing and starting to show the efficiency in Nghe An. Those are very realistic models and helpful for the Government to review and apply into policy to support for the transition and restructure of the economy.
* Sir, there is a comment that, HAGL gains a great profit from their investment in Laos, but it still a doubt if it is in Vietnam, is it consider that our Law on Investment are less than Laos. How is your opinion?
- I think Laos is developing later than ours then we should have a more open mechanism, which is attached to land, cheaper cost etc. But that's not the most important factor, so is technology. HAGL and TH have adopted high technology of Israel and they have created a breakthrough in efficiency. I think that model should be broadly summarized. And this needs support from the Government.
7 years ago, when we met up with the Hyundai Group of South Korea, I asked them why they stop when their business was making profit. They said they had to withdraw since Korea President commented that in 5 and 7 years the situation in the Korean peninsula could be more complex and they would have to focus on domestic support. From the story above, I suggest that we also need mechanisms to support our large corporations such as HAGL, FPT, Hoa Phat, Vincom etc. to push them become stronger, as national brands. And when the country needs, these corporations contribute their effort to support the country. Currently, our State owned corporations and groups clearly show the slow progress in development and improvement. While in a project investment such as investing and transferring technology for national defense might take a decade.
From the successful examples of large private corporations, I suggest that is not necessary to include all State owned enterprises to stand out and cover all national tasks but they should provide sufficient support for private enterprises, and then the State might use their supports when needed.
* Law on Investment is already open for investment aboard, however investing abroad is still facing a lot of difficulties, do you see the same?
From surveying from different locations, I have met many Vietnamese enterprises have successes and highly rated abroad. However, we still have to study Japanese and Korean. The State should organize their support with the model of support using Investment promotion organization to go first, then work with the Government of that country to establish the corporation and collaboration with enterprises, distribute information to enterprises. If we leave each enterprise to go abroad and set up everything themselves would be very expensive, lack of information. State must once again provide support to guide the enterprise, distribute information to enterprises, creating a foundation for enterprise.
* There is a current difficulty, which is transferring money for overseas investment still quite difficult, with many procedures. According to you, whether Government should resolve these barriers?
- I think the procedure is not the problem, and can be resolved. The actual problem is that this company can actually do it or not, is the project feasible. Conversely, if we are not careful with transferring money overseas issue then it’s likely to create gaps, to be used to transfer money overseas illegally, resulting in foreign exchange management will be complicated.
* Because of this concern that many Deputy suggest that we should tighten foreign investment. How is your opinion?
- I think we need to be cautious, and should make a move, but it should not too open too, since it could results in the difficulty when we want to tighten. Because I actually know in enterprise forum, they also want to transfer money here and there, buy a mortgage or carry out their personal investment. We currently in need for foreign currency, if we let it loose then it will be very difficult.
* But the fact some enterprises investing abroad have brought high profits for the country. So why do not we encourage instead of tightening?
- In some developed countries, the currency exchange is very comfortable. There are also countries, such as Thailand right next to us is very tightly managed for foreign exchange. This is needed to calculate, since the foreign currencies are not balanced within the country. We can only open to those who actually do it, but for those want to take advantage, we must have certain technical barriers to maintain stable foreign currency.
* From the actual operations of the company, what would you see as the problems and your comments for the amended Law on Investment?
- There are still number of difficulties so what we looking for this time, the Law on Investment should have breakthroughs, to make procedure more transparent, to reduce the chance that enterprise is being "making law" or "zigzagging". We also hope it will have breakthrough in terms of the policy, to allow enterprises do actual business can have the most support.
As model of Samsung, they invest in chain, pouring billions of dollars into Vietnam. This not only creates economic efficiency, but also on other aspects that they will move to protect their interests in Vietnam if the country faced problems. I think, by attracting as much large corporations like Samsung, or corporations of G7 countries, as we will have more voice around the world to protect our country. It is unquestionable "comb set" strategy with mixture between economic and national defenses that I really concerned about, since prior to be an entrepreneur, I was a soldier.
Besides, I think the State should really be a midwife, not only to facilitate the enterprises, but also to go one step ahead, laying the red carpet for Vietnamese companies. As for the companies, it is admitted that the community of Vietnam in general and Vietnam companies in particular is not high compared with other countries. That we have to adjust, not only from companies themselves but we also have to adjust from school textbooks. If we are only gather our strength in wars, but fragment in peace, then we cannot create power.
* Thank you!
According to Hoang Yen (Vietnam Financial Times)