Vietnam told to improve business climate<\/p>\n
Agence France-Presse, Hanoi<\/p>\n
Experts and business leaders urged Vietnam on Monday to improve
\nthe investment climate and accept private businesses in major
\ninfrastructure projects in the country.<\/p>\n
At a meeting in Hanoi ahead of an informal meeting of donors
\nto Vietnam, foreign investors asked the government to simplify
\nthe legal framework regulating investment in infrastructure.<\/p>\n
\"The general concern is whether infrastructure development can
\nkeep the pace required to meet the ever increasing demands for
\nimproved and expanded infrastructure\", said Jean-Michel
\nCaldagues, member of the board of the European Union Chamber of
\ncommerce in Hanoi.<\/p>\n
\"Already in some areas such development is lagging, posing a
\nconsiderable threat,\" he added.<\/p>\n
His comments were echoed by American Chamber of Commerce
\ngovernor Tony Foster, who agreed the issue was among those that
\ncould explain the limited U.S. investment in the country.<\/p>\n
\"The American companies would like to see private
\nparticipation in infrastructure projects,\" Foster told AFP after
\nthe Vietnam Business Forum.<\/p>\n
\"It is just not sustainable if the government tries to do it
\nall by itself.\"<\/p>\n
Last month, damage to an underwater cable near Hong Kong
\ncaused havoc for more than 300,000 Internet subscribers in
\nVietnam. Traffic was partially restored after few days but the
\nincident was quoted as an example of the shortcomings in the
\ncountry.<\/p>\n
Legal infrastructure and predictability were also on the
\nagenda of the meeting after several recent decisions rang alarm
\nbells among investors.<\/p>\n
Several experts especially criticized a recent decree
\nlimitating the employment of foreign nationals in foreign
\ninvested companies in a bid to stimulate local employment.<\/p>\n
The forum, which was organized by the World Bank's private
\nsector arm, the International Finance Corp. precedes the June 16
\nto June 17 mid-year review of donor countries and organizations
\nto Vietnam.<\/p>\n
The donors, who last December pledged US$2.84 billion in
\nassistance to Vietnam for 2004, are expected to urge Hanoi to
\naccelerate the implementation of its reform program and pick up
\nthe pace of disbursement.<\/p>\n
Donors will meet in the capital of Nghe An province, one of
\nthe poorest of the country, which was badly hit by the outbreak
\nof bird flu earlier this year.<\/p>",
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