The outward investment is the globalize issue and the trend of the regional and international to aim at expanding their market size, improving their on-site productive effectiveness, customer and market access, making the full use of in place natural resources and materials, cutting the transport cost and at the same time to avoid the export quota permits and to employ the export quota of the host countries for market expansion as well as renewing the science and technology, improving their management and marketing  knowledge capability to countries in the region and the world. However it is much depended on the demand and conditions of every country that the outward investment will balance and associate with the foreign direct investment. Therefore the investment of developed countries to developing countries has been changed every year depending on the demand and conditions of the socio-economic development, for instance, South Korea is a country who has its policy on promoting and supporting the inward investment and at the same time encouraging its businesses to make their investments outward. Vietnam, developing its economy from a less developing economy, conducted its attraction of foreign direct investment rather late than other countries in the region and the world but for 20 years of  conducting its attraction of foreign investment, Vietnam has got achievements in effective attracting and employing the foreign direct investment source and by the awareness of the outward investment, Vietnam has early enacted its  policies encouraging the Vietnamese enterprises and corporations to invest overseas.

I.                   THE LEGAL FRAMEWORK ON OUTWARD INVESTMENT OF VIETNAM         

In the early 90’s, the foreign direct investment increased by years, the number of foreign direct invested enterprises in the textile & garment industry sharply increase, the annual export quota could not satisfied the production capacity. Besides the policy “forest closing”, the decision ban to coastal fishing and fish catching for the natural preservation and environmental protection have impacted on the operation of some enterprises in the processing industry for consumption. Therefore to resolve the “above shortage”, some foreign invested enterprises have adjusted their operation objectives, looking for investment opportunities in neighbour countries in region. In the pioneer enterprises in outward investment, it is to mention to the private companies and corporations of border localities to some neighbouring countries (Laos and Cambodia) have implemented their investment projects on the basis of the local governments of the two countries agreements.

Facing with such reality, the Government has enacted the Decree N^o 22/1999/ND-CP dated April 14^th, 1999 provided the guidance and State management on the outward investment operation of the Vietnamese enterprises. It can be said that after more than 10 years implementing the Law on Foreign investment in Vietnam, the legal framework on the external investment  has been set up and opened up for later outward investment operations. Although the legal side for outward investment of Vietnamese enterprises has just been set up in early 1999 but right before this turning point, some Vietnamese enterprises have their operations overseas.

To implement the above mentioned Decree N^o 22/1999/ND-CP, the competent agencies and ministries have their statutes providing in detail guidance on the operations of the outward investment of the Vietnamese enterprises (Ordinance N^o 05/2001/TT-BKH dated August 30^th 2001 of the Ministry of Planning and Investment; The Ordinance 01/2001/TT-NHNN on January 19^th 2001 of the State Bank of Vietnam providing the guidance on the foreign exchange management to the outward investment). The above said statutes together with other legal documents have created necessary legal framework for the outward investment activities. In the passed 16 years there have been 249 outward investment projects of the Vietnamese companies and corporations with total investment of US$ 1.39 billion.

The enactment of Decree N^o 22/1999/ND-CP and other legal documents have place a milestone in setting up the legal basis for the outward investment operations of the Vietnamese companies and corporations, creating favourable conditions for a great number of outward invested projects with their effective operations. It is an illustration for the growth in all aspects of Vietnamese companies and corporations on their way of the regional and international integration. Nevertheless the reality had prove that the activities of the Vietnamese outward investment were still confusing, faced with difficult when putting in operation, exposed some restrictions and shortcomings required improvement, for instant the provisions lack of accurate, comprehension and consistency, and even some provisions up to now are inappropriate and could not cover the diversification of the outward investment. The administrative procedures are generally complicated and confused; no less provision of the competent agencies too deeply intervene to the process of operations and business conducting of the enterprises. The process of registration and assessment for outward investment licensing is complicated; the procedure on amendment of the investment certificate is not transparency. It is lack of sanctions on the mechanism of reporting, providing information on the implementation in the investment host country as well as the supervision mechanism on the outward investment. The collaboration system in managing the outward investment has not been provided in detail and transparent. Besides the legal statutes on the outward investment are just at the decree level of the government therefore the legal effectiveness is obviously not superlative.

From the above mentioned reality, in 2005 the Government had submitted to the National Assembly codifying the outward investment activities and the Investment Law has been approved by the National Assembly (coming into effect from July 2006), in which the provisions the outward investment of Vietnamese enterprises and corporations are in place. Shortly, the Decree N^o 78/2006/ND-CP of the Government on the outward investment of Vietnamese enterprises and corporations was promulgated on September, 9^th 2006 providing in detailed the guidance on implementation of the 2005 Investment Law with 4 main objectives, they are (i) conformity with the actual operations; (ii) more detailed and accurate provision; (iii) further improvement on the effectiveness of the state management; and (iv) simplification of the administrative procedures. Accordingly it should inherit  and bring into play selectively the positives and overcome the shortcomings of the current legal system on the outward investment to expand the autonomous rights of the businesses. The Decree N^o 78/2006/ND-CP also provided the investors and enterprises of all economic sectors including foreign invested enterprises have their right to invest overseas, the rights of autonomy and self-responsibility in their business operations; they have their rights to select their forms of the internal organisation, proper forms of investment to the business requirements and to be protected by the Laws of Vietnam. Minimising the irrational provisions in the sense of “give and take” or “approval”, unnecessary and against the principle of business freedom, annoying to the investment process as well as considering to the roadmap in the bilateral and multilateral agreements, especially the principle on Most Favour Nation (MFN) and National Treatment (NT). Besides Decree N^o 78/2006/ND-CP provided the responsibility, relations among the state agencies, investors and businesses; on the implementation of those relations and sanction on violations from both sides (investors and state agencies and officials) in case of not to proper implement provisions of laws.

It could say that the legal framework of the outward investment gradually improved through the promulgation of the Investment Law and the Decree N^o  78/2006/ND-CP on August 2006 providing on the outward investment replacing the Decree N^o  22/1999/ND-CP dated on April 14^th 1999 and the procedures on outward investment have been specifically, clearly and simply guided in the Decision 1175/2007/QD-BKH on October 10^th 2007 of the Ministry of Planning and Investment.

II.                CURRENTSITUATION OF THE OUWARD INVESMENT OF VIETNAMESE ENTERPIRSES AND CORPORATIONS

The national economy continues its growth and on the one hand, several Vietnamese companies and corporations with their financial capabilities and experiences to make their investment overseas. On the other hand Vietnamese companies and corporations have acknowledgment the benefits they got from their outward investment (making the full use of at-site materials, labour force and reducing the transport costs, market access in host country etc.) under the circumstances of in-deep integration to the regional and international economic life, particularly at the time when Vietnam officially becomes the 150^th member of the World Trade Organisation (WTO) has created a better conditions for the trade and investment activities of enterprises including the outward investment of Vietnamese businesses.

1.      The Outward investment in 2007:

With the growth tendency of previous years, the outward investment of Vietnamese enterprises and corporations in 2007 continues  flourishing. There were 64 projects of outward investment with total registered investments of US$ 391 million, 77% increase in number of projects and 92% of registered investments compared with 2006.

Allocation by  sector, the agriculture-forestry-fishery ranked the top in investments (17 projects with total investments of US$ 156 million), accounting for 40% total outward investment and 27% number of projects, increased 5.4% in registered investments compared with 2006 (30.3% number of projects and 34% total outward investment). The investment in this sector mainly focuses in crop tree plantation of rubber, cashew nut etc. in Laos PDR, largest project is the rubber plantation in the area of 20,000 ha with total investment US$ 81.99 million invested by the Dau Tieng Viet-Lao Rubber Joint-stock Corporations approved by the Ministry of Planning and Investment in June 2007.

The next sector is industry (23 projects with total investments of US$ 147.1 million), accounting for 38% total outward investment and 36% number of projects. In this sector, project mostly invested in heavy industry including oil & gas project, in which the largest was the project in oil & gas exploration and mining in Madagascar with total investment US$ 117 million invested by the investment certificate of the Oil & Gas Development Corporation in October, 2007.

The remains invested in the service sector (24 outward investment projects with total investments of US$ 87.2 million) comprising to 22% total outward investment and 38% number of projects, decreased compared with 2006 (accounting for 39.3% total projects and 61% total investments). The two largest projects are: 584 Construction and Investment Joint stock Company invested US$ 30 million to the project of trading centre in United State of America and Military Telecommunication Corporation (Viettel) invested to Cambodia to establish and operate the telecommunication network with application of VOIP technology, supplying telephone service and mobile phone network in Cambodia, with total investment of US$ 27 million.

The scale of average outward investment in 2007 reached US$ 6 million per project

2.      The Outward investment from 1989 to 2007

For 16 years of implementing the outward investment and by the end of 2007, Vietnam has made 249 outward investment projects under operation with total investments of US$ 1.39 billion and disbursement reached US$ 927 million, accounting for 66.8% outward investment projects. The scale of average investment reached US$ 5.58 million per project. Scale of the investment changed by period towards further increasing, it is proved that the positive impact of the legal framework to the outward investment of Vietnamese investors as well as the active participation in outward investment of large corporations with large capital in which the Vietnam Petroleum group must be mentioned.

In the period of 1989-1998 prior to the enacted Decree N^o  22/1999/ND-CP of the Government dated on April 14^th 1999 provided the outward investment of Vietnamese companies and corporations, there were 18 outward invested projects with total investment of over US$ 13.6 million and the scale of average investment was US$ 0.76 million/project

In the period of 1999-2005 after the promulgation of Decree N^o  22/1999/ND-CP of the Government, there were 131 projects with total investment of over US$ 559.89 million, sevenfold in number of project and forty fold in total registered investments compared with the period of 1989-1998; the scale of average investment achieved US$ 4.27 million/project, higher than previous period.

Since 2006 when the Decree N^o 78/2006/ND-CP on August 2006 providing on the outward investment of Vietnamese enterprises to the end 2007, there were 100 outward invested projects with total investments of US$ 816 million; it just comprised to 76% number of project but increased …    and forty fold in total registered investment compared with the period of 1999-2005; the scale of average investment raised US$ 8.16 million/project, higher than period 1999-2005.

a.      The outward investment by sectors

The outward investment of Vietnamese enterprises, mostly focusing in the  industry sector with 100 projects and total investment of US$ 893 million, comprising to 40.16% of project and 64.3% of total outward investment in which a considerable number of projects with instead scale over US$ 100 million such as Xekaman 3 hydropower station of the Viet-Lao Power Investment and development  Joint stock Company with total investment of US$ 273, the project in oil & gas exploration and mining of Vietnam Petroleum Group (PetroVietnam) in Algeria with investment of US$ 243 million and 2 projects in oil & gas exploration and mining in Madagascar in oil & gas exploration and mining and one in Iraq with investment of US$ 100 million.

The next is the outward investment in the agricultural-forestry-fishery sector with 53 projects and total investment of US$ 286 million, accounting for 21.3% in project number and 20.57% in outward investment. Among projects in this sector, mostly invested projects focus in crop tree plantation, rubber in Laos PDR with some large scale projects as:  (i) the rubber plantation project invested by the Dau Tieng Viet-Lao Rubber Joint stock Corporation with total investment US$ 81.99 million; (ii) the Dac Lac Rubber Corporation, total investment US$ 32.3 million; (iii) the Viet-Lao Rubber Joint stock Corporation, total investment US$ 25.5 million.

The outward investment in the service sector has 96 projects with total registered investment US$ 210.4 million, accounting for 38.5% number of project and 15.14% total outward investment. There are some large projects as: invested project in Cambodia of the Military Telecommunication Corporation (Viettel) to operate a mobile phone telecommunication network with total investment of US$ 27 million; the project to Federal Republic of Russia for construction of a trade centre, office building invested by the Viet So Investment Joint stock Corporation with the investment of US$ 35 million; the project in Singapore for shipbuilding of oil tank ship of the Oil and Gas Technical Service Corporation with total investment of US$ 21 million etc. The remained investment projects are in small and medium investment to USA, Singapore, Japan and China.

b.      The outward investment by partners

The Vietnamese enterprises have invested to 35 countries and territories but principally in:

Asia with 167 projects and investment of US$ 751.03 million, accounting for 67% number of project and 54% total registered  investment. Most projects focus in Laos PDR with 86 projects and investment of US$ 583.8 million and disbursement is US$ 328 million, comprising to 35% in number of project and 42% in investment. Most of projects in Laos are in energy, rubber plantation and natural resources mining. In Iraq Vietnam Petroleum Group (PetroVietnam) invested an oil & gas exploration and mining project with investment of committed investment of US$ 100 million, currently has not yet implemented as the unstable security in this area.

Vietnamese investors also invested in Africa with 2 projects of Vietnam Petroleum Group (PetroVietnam)  in oil & gas mining and investment of US$ 360 million, accounting for 23.5% of total registered investment including: (i) a project in Algeria with investment of US$ 243 million, after exploration process completed, the assessment had discovered oil and gas; (ii) a project in Madagascar, investment of US$ 117.36 million and the report is very positive.

Europe with 37 projects and total investment of US$ 463.84 million, comprising to 14.6% in project and about 10% in investment in which Federal Republic of Russian seized 12 projects and total investment of US$ 78million.

c.       The implementation of projects

By the end of 2007, the outward invested projects have disbursed approximately US$ 927 million, accounting for 66.6% total outward investment. Among the implementing projects, the industry sector seized the biggest proportion, 58.6% total disbursed investment and realized about 60% total investment in this sector. Some considerable projects have been implemented, they are:

(i)   The oil & gas exploration project in block 433 & 416 B in Algeria and Block 305 in Malaysia of Vietnam Petroleum Group (PetroVietnam) with disbursement of US$150 million. Currently Vietnam Petroleum Group in collaboration with its partner had found oil & gas reserves in block 433a-416b in Algeria (well MOM-2 found oil, well MOM-6 bis oil spring mined 5.100 barrels/day) and contractual block Sk 305 in Malaysia (well DANA-1X oil spring mined  3.100 barrels/day).

1.      The project invested in Singapore of the Petroleum Technical Service Corporation (PTSC) had contributed US$ 22.7 million.

2.            The Xekaman 3 Hydropower station in Laos project is constructing works to the process with disbursement about 100 million.

Besides, there is an invested project in garment production in Laos of Scavi Vietnam (a wholly foreign invested enterprise established by a Vietnamese overseas under the Law on Foreign investment in Vietnam). This project very profitable operates.

The projects in crop tree plantation, rubber in 4 provinces of Laos PDR, are currently actively implementing to the set plan, concretely: the Dac Lac Rubber Corporation with its disbursement about US$ 15 million, project in rubber plantation, processing and production of the Vietnam Rubber Corporation with disbursement about US$ 20 million has implemented to its plan. The project now facing with some difficult in setting up the production caused by the process of land transfer was delayed. The delay reasoned by compensation and land clearance lack of the simultaneous and consistent provision from central government to the localities. The master plan on land use has not yet been consistency, the allocation land for crop tree plantation, forestry and for living area has no master plan. In according to the delegation of state management on land in Laos provided with are above 100 ha shall be managed by central government and under 100 ha shall be under the localities. At the contact with investors, the officials committed to grant over 100 ha for cultivation but in reality land only transfer 100 ha in turn, leading to overlapping, especially when the  project by some reason can not put into operation to its implementation plan. Besides, the Vietnamese businesses operating in Laos faced with difficulty in : (i) the procedure of residing of Vietnamese employees as the employees at site cannot meet the requirements; (ii) The custom formalities are too much complicated (particularly in new border gates), inconsistence at the border gates ; many fees beyond provisions of Laos.

Some projects in service sector have been implemented as: (i) the project invested to Singapore of Trung Nguyen Company Ltd., effectively operates, bringing the flavour of Vietnamese coffee to the international friends; (ii) The invested project to Japan of the FPT software Joint-stock company, at its first steps collaborated in training  international level programming staff; the project of building a multifunctional community centre of Ho Chi Minh City in Federal Republic of Russia invested by the Viet-So Investment Joint-stock Company has made its contribution of about US$ 2.5 million.  This project has been approved by Moscow authority (Decision 2288-RP dated November 15^th 2005) and land transferring (minute 1379 on December 19^th 2007), the selection of the constructor and contracted the consultant company. At the same time, the architecture resolution has been approved by Chief Architect. Estimation the construction shall be commenced by the end of 2008 after the assessment and approval on the technical design and others (fire & environment protection) of the authorities of F.R. Russia; (iv) the project in Cambodia of the Military Telecommunication Corporation (Viettel)  is under the implementation as plan.

III.             ASSECCMENT ON THE OUWARD INVESMENT OF VIETNAM

For 16 years of implementing the outward investment of Vietnamese enterprises got favourable conditions but no less challenging.

1.      Advantages

a.       At home:

* Referring to the law and policy:

            The legal framework of the outward investment gradually improved paving up the legal framework for outward investment activities and management.

* Referring to the state management:

The issuance of the outward investment certificate and management are gradually in discipline. The process of appraisal for certificate issuance to the outward investment has been much improved. The collaboration among ministries as Ministry of Planning and Investment, the State Bank of Vietnam, Ministry of Finance and diplomatic agencies in managing and providing information on the formation of outward investing projects by information exchange and cooperation in resolving obstacles of project in various ways.

The relation between the diplomatic representatives and investors, enterprises gradually closer.

The trend of outward investment shall be more dynamic, there will be more enterprises and corporations with financial capability and interest in expanding their business market by investing to overseas to bring into full play the economic integration to the daily international life (expanding market for product distribution, reducing the production costs and transport cost etc.). Particularly the outward investment has moved from small scale projects, investing in simple careers (as restaurants, business in Vietnamese tea, coffee) to larger projects required high technique and technology, large scale of investment (oil & gas exploration and mining, energy). From 2006, total registered investment surpassed US$ 1 billion. Although the number of projects and the scale of investment of Vietnamese outward investment remained small in comparison with the inward investment to Vietnam (over US$ 83 billion) but it proves the growth up of Vietnamese businesses in their financial capability, technical & technology knowledge and the management & investment experiences. In short, the outward investment has been effectively implemented in its first steps, a great number of projects successfully implemented have their project expansion and increase their investments.

b.      Referring to the host countries:

-   Referring to the policies, all governments of host countries have their policies in encouraging foreign investment. The registration for the company establishment in some countries (Russia for instance) very simple.

-   Depending on the natural and reality conditions of each host country with potentials that Vietnam is short of. For instance, Laos has its potentials which Vietnamese enterprises could cooperate with and invest in sectors as Hydropower stations, exploration-mining-processing natural resources, crop tree plantation, agricultural and forestry processing.. etc

-   The relations among Vietnam and some economies (Laos, F.R Russia, Cambodia…) are the special political and economic relations therefore the investment and cooperation between the tow sides always received supports from the tow governments.

2.      Challenges and restrictions

a. At Home:

* Referring to the law and policy:

- The government has not yet either policies nor a specific mechanism to support and to encourage Vietnamese enterprises investing to other countries, especially to Laos, Cambodia or F.R. Russia.

- the legal framework on outward investment in the form of portfolio investment is unclear causing restrictions to this form of investment. This is mismatched to the current context and requiring a detailed guidance regulations.

* Referring to the state management:

-         The management to the outward investment is facing with difficulties as the reports on projects are insufficient meanwhile the legal sanctions have not yet clearly provided and strictly realized.

-         Lack of information on investment policies in some region and areas produced difficulties for investment promotion, encouraging Vietnamese enterprises investing overseas.

-         Reviewing and summarising the results of outward investment to get experiences in management and raising the recommendations measures to further encouraging  outward investment.

-         The contacts between diplomatic  and trade  representatives abroad with businesses are sometimes loose then when some dispute raised, it can not take full advantage from the government.

-         In some outward invested projects the duration on appraising for certificate issuance is too long as provided by law, causing the adverse effects to the implementing process of the project. This can be seen in some divisions and individuals who have not enhanced their responsible morals at works.

* Referring to enterprises:

- The potentials and capability of Vietnamese in capital, technology are not very competitive; the management experiences are restricted as well as their competitiveness is far beyond some other countries (China, Thailand) in the host countries.

-     The number and size of outward invested projects of Vietnamese enterprises are small affected by financial abilities and investment experiences .

-     The Vietnamese enterprises are separately and scattering operating in the overseas, even competing each other, and no linkage to have their voices to the competent authorities in the host countries. Some businesses break the laws of the host countries, damaging the reputation of the Vietnamese investors.

-     a great number of Vietnamese businesses did not update Vietnam’s outward investment policies, not comply the periodical reporting mechanism, not register their changing in operation objectives, investment forms in the host countries and their investment scale overseas.

b.   Referring to the host countries:

-     The legal system to the investment of some economies are under the amendment and adjustment leading to changes, inconsistence, not transparency and hard to access. In some economies there is an inconsistencies in policies and regulation applied, especially provisions set by localities and applied beyond the provisions of the government (for instance the policy of incentives on exemption of corporate income tax to be applied countrywide but the local governments still applied this tax to businesses).

-     The register formalities for establishment in some economies as well as the implementing procedures of the invested project (land issues, design approval etc.) rather complicated, time and cost consuming to the businesses, the procedure of custom clearance complicated (in Laos, F.R.Russia).

-     The labour force is a restriction, low level of knowledge and skills, the discipline and industrious is critical and difficult the meet the labour requirements of investors both in quality as well as quantity.

IV.              PERSPECTIVE OF THE OUWARD INVESMENT

1.      Background

Presently the outward activities are facing with new advantages, they are:

(i)                  The 2005 Investment Law comes into force since July 1^st 2006 and the regulation providing in detail the implementation of the Law has created favourable conditions to the outward investment;

(ii)                Along with the development of the national economy, the financial of Vietnamese businesses unceasingly improved;

(iii)               The international position of Vietnam is further upholding, the process of international integration is pushing up with signing and implementing the multilateral and bilateral shall make favourable conditions for outward investment.

(iv)              Indispensable demand for expansion of outward investment of Vietnamese businesses shall be sharply increased by the requirement of expanding the export market, economic and technical cooperation, minimising the investment and transport costs, bringing the integrating advantages into full play for improvement of the investment effectiveness.

From those factors, the investment trend of Vietnamese enterprises overseas in the period 2006-2010 shall have significant move and impact positive on domestic economy.

V.                 THE FORECAST FOR OUTWARD INVESTMENT IN THE YEARS TO COME

The forecast for the outward investment in the coming years (2008-2010)of Vietnamese businesses shall be increased, average US$ 500 million per annum with the following reasons:

-     The Government shall continue to further improve the mechanism 

and policies encouraging outward investment, satisfying the trend and requirements of Vietnamese businesses invest overseas for their expansion of the market, saving their investment and transport costs and making full advantages of the economic integration increasing in future.

-      Along with Vietnam economic development, there will be more businesses who have financial and technology capabilities to invest overseas,

-     The further Vietnam in-deep integrates to the regional and international economic life, especially at the time when Vietnam officially becomes the member of the World Trade Organisation (WTO) the better conditions for Vietnamese businesses make their investment to other countries, especially to the WTO member countries.

VI.              MEASURES TO ENCOURAGE THE OUWARD INVESMENT

To encourage the outward investment of Vietnamese businesses  require the encouraging mechanism, incentives of Vietnamese Government granted to investors in general and in particular, specifics to some economies (Laos, Cambodia, F.R. Russia) but those incentives and encouragement policies must be supported by the host countries through the bilateral cooperation agreements among competent governments relating to the reciprocal investment encouragement; collaboration in regularly information exchange, setting up the coordination among investment agencies.

Apart from specifying the impacted factors to the investment decisions of the investors (a favourable investment environment, investment incentives, the profitability at the host country), the policies in the home and the host countries should lead to creating conditions for profit potentials turn into the profit opportunity and benefit of businesses in reality.

Therefore to encourage the outward investment of Vietnamese businesses , it should accomplish the following measures:

1.            Referring to management

(i)                  Strengthen the sanctions measures on mechanism of periodical reporting and statistics of the enterprises in order to setup the base for review the outward invested projects.

(ii)                Urgently establish the scheme on support and encouragement to the outward investment activities to the directive of the Prime Minister including uprising resolutions, in a sense of “pushing” for promoting the outward investment of Vietnamese enterprises and investors.

(iii)               Enhance the investment promotion in 2008 and in the coming years, concretely encourage the investments of Vietnam to significant economic locations and regions ( Laos, F.R.Russia, the US, Cambodia) in the forms of launching the proper investment promotion campaigns, translating Laws and regulations, policies, investment environment and opportunities in some ….. to provide to enterprises, management agencies through the publications and websites

(iv)              Research and submit the proposal to the Government on delegation of outward investment management

2.            Referring to the information provision

a.             The management agency i.e. the Ministry of Planning and Investment in charge and cooperation with other ministries to gather all information and maybe annually compile for publication in Vietnamese to supplying businesses at home who have intention to make their investment abroad on:

·     The policies on investment attraction; law and policies relating to investment activities, business conduct of enterprises in host countries.

·        Investment potentials and opportunities in selected sectors in the host countries.

·        The concrete investment projects approved by the two governments

·        Projects calling for investment of the host countries

·        The diplomatic representatives of Vietnam in the economies provide the following information to the businesses:

The information on policies on investment attraction; laws  and policies relating to the operating duration of enterprises in Vietnamese (publication the investment guidebook in Laos and Cambodia); regularly update changes of laws and policies of the host countries to provide for businesses.

·        Arrange the information collection on the specific markets concerned by investors

3.            Referring to incentives and supports of the government

a.            Support the investment source   

To some certain invested projects, to implement the important objectives which have positive effects to our national economic development as power production and importing to Vietnam, mining the natural resources for import substitution for domestic processing, it should be granted the incentives and capital supports, concretely:

- The Bank for Investment and Development of Vietnam (BIDV) allows investors to get a minimum 30% loan of total project investments and exempted from the loan mortgaged by assets, preferential interest rate grant. The Government can be the guarantees the loan of businesses.  

b.            Tax incentive policy

The tax incentive should be granted to the invested enterprises in some specific sectors (electric production imported to Vietnam, natural resource mining for import substitution, supplying to domestic processing), concretely  corporate income tax exemption to the remitted profit which has taxed in Laos.

c.             Implementation of bilateral and multilateral agreements:

         Early and unified deploy and implement the contents of the bilateral and multilateral agreements among Vietnam and other countries, including the reciprocal agreements on investment promotion and protection and the bilateral agreements on avoidance of double taxation signed between Vietnam and other countries to be a basis for the investment activities of businesses of each country.

d.            Vocational training:

The labour force in some host countries (Laos & Cambodia) is some constraint, low skills and can not meet the labour requirement of investors both in quality and quantity. Therefore Vietnamese investors have to recruit a large quantity of Vietnamese employees from Vietnam or to recruit Laos employees and take them to Vietnam for vocational training. Consequently the Government should have a mechanism and policy for supporting enterprises investing to Laos and Cambodia to train Laos and Cambodian employees or to train Vietnamese employees working in Laos and Cambodia.

The aids and assistance of Vietnam to Laos and Cambodia should be closely attached to and create favourable conditions for investment activity for instance, assisting the vocational training attached to the investment sectors of Vietnamese enterprises to Laos and Cambodia ; assistance to training the carders at commune level of Laos and Cambodia in Vietnam.