High costs of doing business are the first disadvantage for the foreign investor. JETRO ofJapan has regularly published comparison of business costs among regional countries andthe cost on international telephone calls, Internet fees, and seaports are exorbitant. Vietnamstill has a dual price system for foreign investor and applies another Law on Promotion ofDomestic Investment for local investor. The Government has promised to gradually abolishthe dual price system and unify the two investment laws.Corporate Tax and Personal Income Tax (50% of the gross income) are well above regionalaverage.Infrastructure in Vietnam has been up-graded generally but the quality of some public goodsand services is low. Low stability, fluctuating tension, sudden black outs in power supplycreate significant additional costs for users and prevent investors to move high-techinvestment into Vietnam. . The advantage of low labor costs is diminishing graduallybecause of increasing salaries but slower growth in productivity so that unit labor cost isgradually rising.
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