Vice Minister of Planning and Investment Cao Viet Sinh had an interview with a Radio Voice of Vietnam reporter.

Reporter: How has Vietnam prepared to attract investment?

Mr Sinh: The number of projects worth over US$1 billion is increasing, which has forced us to boost investment registration procedures. To this end, the Ministry of Planning and Investment (MPI) and the relevant agencies have set up a group to coordinate our work with the local authorities to create the best possible conditions for investors to carry out their projects.

Vietnam is attracting more investment capital (US$12 billion last year, US$13 billion this year and possibly more in 2008) and the MPI is responsible for cooperating with localities to enhance their ability to assess investment projects.

Reporter: In terms of projects to develop electricity generation, how has Vietnam prepared for that?

Mr Sinh: The Government plans to double the current output of electricity. Therefore, the MPI will cooperate with other ministries and sectors to grant licences for electricity projects as quickly as possible. Many investors from France and the Republic of Korea have come to Vietnam to negotiate the input price of electricity. What is noteworthy is that we are focusing on thermo-electric power projects to balance with hydro-electric power projects. However, transport fees are still high, which might hamper Vietnam’s competitive edge. Therefore, the Prime Minister has asked for more investment into deep-water ports in northern Hai Phong province and southern Ba Ria-Vung Tau province. The PM also stresses the need to ensure adequate reserves of coal and transport in order to keep costs down to a minimum.

Reporter: What should we do to build and develop a sustainable investment environment in localities?

Mr Sinh: First and foremost, localities should improve their infrastructure, especially those outside industrial parks, focus on training highly skilled workers and provide enough suitable accommodation for workers.

Apart from attracting on-the-spot workers for the light industrial sector such as garments textiles and footwear, it is essential to enrol workers from other areas. In order to build a sustainable investment environment, it is also imperative to have close coordination between the centrally run agencies and local administrations.

Reporter: How will problems in the procedures be removed?

Mr Sinh: The Government will issue procedures to each locality to spare them having to build their own. In terms of foreign investment, Vietnam has put into effect the Investment Law and the Enterprise Law, which creates good conditions for foreign investors to do business in the country. So far, many of the major foreign investment projects have been located in the bigger cities and industrial parks. However, to help remote and mountainous provinces attract foreign investment, the Government will spare no effort to improve the infrastructure and is focusing on projects to build national highways in the northern mountainous provinces and upgrade airports in the Central Highlands, and Can Tho and on Phu Quoc island.

Reporter: Thank you very much.