Vietnam owns more investment competitive advantages compared to its neighboring countries of China, Thailand, Malaysia and Indonesia, a survey recently released by the Japan External Trade Organization (JETRO) showed.
The survey covering 30 cities and regions in Asia last year showed that Vietnam has investment cost advantages in wages, land rent, power fees and fees for maritime transport.
Japanese business paid workers in Vietnam an average US$95 per month against US$131-US$286 monthly for laborers in other countries, JETRO said.
The report indicated that water costs and leasing industrial land in Vietnam were very cheap while office rents remains high. Its telephone charges were the lowest in the region but Internet connection fees were far higher than those of the neighboring nations mentioned above.
These advantages were attractive to foreign investors, JETRO said, noting that the country should further improve the labor quality, legal transparency and reform administrative procedures to lower “indirect costs” to investors.
Vietnam was estimated to have attracted US$6.68 billion of pledged foreign direct investment (FDI) inflows between January and May, down 76.3 per cent on year, the Ministry of Planning and Investment said.
The country aims to attract US$20 billion of FDI this year compared with US$64 billion pledged for 2008, the ministry said. (Vietnam Economic Times, Capital Security)
