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.