Viet Nam, Japan agree investment deal

Tuesday, Aug 23, 2016 09:06

A worker in the factory of Stanley Viet Nam Electric Co Ltd- a joint venture between Viet Nam and Japan manufacturing automotive lighting equipment, vehicle accessories and electronic devices. — VNA/VNS Danh Lam
HA NOI (Biz Hub) — Viet Nam and Japan reached an agreement on a series of actions to tackle issues related to business policies and investment environment as well as improve small- and medium-size enterprises (SMEs)' capacity on Monday.

Under the Memorandum of Understanding on the Viet Nam-Japan Joint Initiative Phase VI signed by the two sides, the action plan of Phase VI will focus on dealing with existing problems of Phase V and some newly arising issues which are categorised into seven groups.

They are labour; salary; logistics-transportation services; services; small- and medium-size enterprise (SME) supporting; Law on Investment and Law on Enterprises; and pharmaceutical distribution sector.

In the field of labour, specific issues include applying the mechanism in which enterprises can provide for the maximum amount of overtime by industry by themselves; revising the list of heavy, toxic and dangerous work; applying regulations of labour safety and hygiene suitable for each industry and each work; and improving enterprises' knowledge about of laws on labour accidents.

Regarding the salary issue, Japan proposed to clarify the definition of minimum salary and economic indicators and survey data used to review minimum salary, reconsider the method for studying minimum cost of living required and the method for researching ability to pay salary of enterprises.

Related to SMEs support, Viet Nam and Japan will co-operate to conduct surveys on activities such as financing to expand investment, technology transfer and personnel training.

Japan will also assist policymakers in drafting the law on SMEs and join hands with Viet Nam to organise conferences on policies to support SMEs in the near future.

Minister of Planning and Investment Nguyen Chi Dung said that the Viet Nam-Japan Joint Initiative, first launched in 2003, was a special co-operation agreement between the two governments.

By establishing a policy dialogue forum between Japanese investors and related Vietnamese ministries, the Initiative has contributed to creating a transparent and clear investment and business environment in Viet Nam, and delivered various benefits for Japanese enterprises in the investment and business process in the country.

"This is where Japan's constructive recommendations of policy improvements are put forward and used as a reference for Vietnamese authorities to complete their legal frameworks," Dung said.

After five phases of the initiative implemented, 367 out of 441 items committed were well implemented as scheduled.

At the meeting in the end of Phase V in December 2014, both sides agreed to continue to implement the Initiative Phase VI.

Takahashi Kyohei, Chairman of the Japan-Viet Nam Economic Committee (KEIDANREN), said that in the context of fiercer competition and deeper integration, Viet Nam should make drastic changes so as to be able to address more complicated issues.

Therefore, Japan will share its experiences with Viet Nam when reviewing issued mentioned in the MOU.

The Phase VI will be implemented over 17 months from August 2016 to the end of 2017. — VNS

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