Dialogue between HCMC authorities, Japanese businesses held to solve obstacles

The Ho Chi Minh City People's Committee on December 9 held a dialogue with Japanese businesses to solve problems in taxes, work permits, and the investment environment.

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At the dialogue between HCMC government and Japanese businesses (Photo: SGGP)

Deputy Director of the Ho Chi Minh City Department of Planning and Investment Quach Ngoc Tuan said that as of early December, Japan’s new investment reached US$3.55 million, making Japan the leading country in terms of investment in Ho Chi Minh City. Japanese companies have invested a total of US$8.538 billion, ranking third among 127 countries investing in the city.

The city is focusing on developing a high-tech industrial center with four key industries, including mechanical engineering, electronics and information technology, medicinal chemistry and plastic rubber, and food processing; five prioritized technology sectors, including electronics and semiconductors, automation and robotics, biotechnology, pharmaceuticals, and high-tech supporting industries; and six service industries consisting of tourism, finance and insurance, e-commerce, healthcare, transportation and logistics, and educational technology.

The city is also mobilizing resources and attracting investment to develop Ho Chi Minh City with the goal of becoming a competitive international financial center, focusing on the money market and banking system, the capital market, and the commodity market.

In addition, the city is also expected to become a center for digital technology and information technology, focusing on developing high-potential software to stimulate the growth of the national digital economy, developing high-end software and infrastructure services, "Made in Vietnam" cybersecurity services, expanding into AI platforms, and tools for software quality control for international markets, investing in a national center for cloud computing services, and developing the city to become an international tourism center and a vibrant leading tourist destination in Asia.

At the conference, Vice President of the Japanese Chamber of Commerce and Industry in Ho Chi Minh City (JCCH) Nakagawa Motohisa said that the city needs to improve the investment environment and complete institutions and policies to attract investors, domestic resources, and foreign investment.

The Japanese business community has suggested that the city review the twice payment of social insurance according to regulations requiring a subsidiary in Vietnam to sign labor contracts and pay social insurance for its foreign workers working in Vietnam as internal rotations.

In addition, the investment trend of Japanese businesses is gradually shifting from manufacturing to the service sector, particularly the field of retail. Therefore, the Ministry of Industry and Trade needs to issue instructions to ensure consistency between Vietnamese law and the international treaties that Vietnam has signed to open up more business investment opportunities for the two sides.

Japanese businesses suggested tax authorities promptly issue VAT invoices, accelerate the process of immigration procedures to reduce congestion at entry points, and improve motorcycle riders’ awareness in traffic.

In addition, representatives of Japanese businesses expressed a desire to collaborate with the city in activities related to green transition and sustainable growth. They also suggested that relevant authorities support Japanese companies to increase the local supply ratio of products for Vietnam's supporting industries.

Speaking at the conference, Vice Chairman of the Ho Chi Minh City People's Committee, Vo Van Hoan, affirmed that the city always accompanies businesses and makes all efforts to solve difficulties and obstacles to meet the growing demand for technical infrastructure, social infrastructure, human resources, and a fair and transparent business environment. However, the city has also firmly requested that investors shift towards high-tech industries to align with the city’s development direction and goals. The city is also examining policies to support businesses to change or not to change into high-tech industries.

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