Asian reforms a must to lure investors

Asian reforms a must to lure investors

HANOI, Vietnam (AP): East Asian countries cannot afford to falter in reforming their economies if they want to attract crucial foreign investment, Australian Foreign Affairs Minister Alexander Downer said Saturday.

Such investment must continue for South Korea, Indonesia, Thailand and other countries to pump strength back into their devastated currencies, Downer told a news conference.

"The region needs to commit itself to the continuation of deregulation and economic reforms. If they stop, they won't get out of their economic difficulties for a long time," he said, adding that he views rising unemployment in East Asia "with concern."

Downer, making a five-day visit as part of commemorations for the 25th anniversary of the establishment of bilateral diplomatic ties, announced an increased aid program for Vietnam.

Starting July 1, Canberra will provide A$236 million (US$153 million) over the next four years, up from A$200 million (US$130 million) in the last four years.

He admitted that support for aid to Vietnam is not as strong as 20 or 30 years, but "We think it is the right thing to do."

Downer said he has met with the president, prime minister and other top officials on his third trip to Vietnam as foreign minister.

While he said Australia is "very happy" with improvements in the relationship between the two countries, he expressed concerns over red tape and human rights.

Australian businesses that are considering investing in Vietnam want "rules for investment to be simple, predictable and clear," Downer said.

Many foreigners doing business in Vietnam complain about excessive red tape, bureaucracy and changing rules. The government, worried about plunging investment and exports, says it is giving high priority to make the climate more attractive.