That was said by Dr. Mai Huu Tin, Chairman of Binh Duong Business Federation about the issue that Chinese stock markets was facing unpredictable fluctuations; many investors left this country, and were likely to invest in Southeast Asian countries including Vietnam.
- How do you evaluate the FDI attraction of Vietnam and Binh Duong in recent times?
- In general, Vietnam has many advantages in attracting FDI in recent times, because investors want to exploit opportunities brought by free trade agreements. Particularly, Binh Duong province has more advantages, due to good infrastructure, being adjacent to Ho Chi Minh City, supports from local authorities.
According to Dr. Mai Huu Tin, there is no basis to assume that there would be a new wave of foreign investment in Southeast Asian nations. Image: The production line of Sansho Vietnam Company.
- Chinese stock market has been volatile recently. According to you, is there any new wave of investment in Southeast Asian countries including Vietnam, when many investors have fled from China?
- It should be understood that financial investors not the whole Chinese economy have fled from this country. China is still an attractive market to investors and the largest manufacturing center of the world. I have no basis to believe that there would be a new wave of investment in Southeast Asian countries. Short-term money that fled from China would flow to safe places, for example, the US.
- In case of the emergence of a new investment wave flowing into Southeast Asian countries, what advantages and difficulties Vietnam as well as Binh Duong province would have?
- Challenges to foreign investors and domestic businesses are still the same: lack of high-quality human resources, poor infrastructure leading to high logistics costs (transportation, storage, and supply of goods), under standardized administrative system.
As I mentioned, there is no basis to assume that there would be a new wave of foreign investment in Southeast Asian nations. Therefore, above average capital inflow into Binh Duong would occur only when the Trans-Pacific Partnership Agreement (TPP) was negotiated successfully.
- The increase of regional minimum wage is going to be implemented. How this would affect business activities of foreign investors, sir?
- Wages is another issue. Investors make decisions on the basis of profits and costs. Higher wages - high profits from high productivity will be better than low wages - low productivity. Labor is also a good. Bad good cannot be sold even with low price.
Reported by P.An – Translated by Ngoc Huynh
