Q: When Ho Chi Minh City decided to set up an industrial zone to attract foreign capital, quite a few countries were interested in developing it, but you chose the Tan Thuan Export Processing Zone proposed by the Republic of China. Why is that?

Active Taiwan investment

A: Our aim in setting up an industrial zone was based on the fact that our current exports are mainly agricultural goods and raw materials like coffee, rubber and rice, with comparatively few industrial products. In order to balance development and increase exports, we hope that setting up an export processing zone will attract foreign investment and raise the added value of our products.

Our country has no experience in developing export processing zones. Looking at overseas models, we found that Taiwan's achievements in this area have been outstanding. In addition, Taiwan firms have been very active in investing in Vietnam in recent years.

After carefully studying the Tan Thuan plan, we felt that its definition--that is, its formulation of management rules on the industries to be brought in and on customs, financing and labor--was very detailed and reasonable.

The textile, garment, electronics, foodstuffs, footwear and other labor-intensive industries to be brought in under the plan conform to our present level of industrial technology and will create more employment opportunities for Ho Chi Minh City, which is a major goal of our six-year economic plan.

In addition, the plan also includes regional development in conjunction with the processing zone, such as construction of an electric power plant, better roads and a new residential community. We believe that the R.O.C. can help Nha Be County--the county in which the zone is located--to develop into a strong industrial district and become a key instrument in upgrading our country's economy.

Polluters not welcome

Q: Besides the export processing zone, what other kinds of experience do you feel the Republic of China has to offer that fit in with the needs of Vietnam's present level of development?

A: We have always been looking for a magic weapon to upgrade our economy. There was a friend from Taiwan who helped us in agricultural development outside Ho Chi Minh City, for instance, using science and technology and entrepreneurial production methods to raise production value. That is also the kind of modern technology we sorely need.

In fact, the whole process of economic development of the R.O.C. and its experience are worth studying and using as a reference.

Q: It's said that a reporter from the Far Eastern Economic Review visited Vietnam during the earth summit meeting, and when he praised the clean air he was told, "Actually, we could use a little pollution." At the same time you start developing industry, will you also pay attention to environmental problems and how to handle them?

A: The leadership is indeed paying attention to those issues, which is why there are restrictions on the types of industry allowed in the export processing zone. We don't welcome big polluters such as electroplating factories and petrochemical plants.

Of course, if you want to develop industry you can't stop pollution completely, but we still want to prevent it as much as we can. The planned electric power plant, for instance, will inevitably create some pollution due to combustion, so before granting a license we spent a long time on study and evaluation. We have restricted the location of the plant to 20 kilometers or more away from the zone to avoid affecting the public's living environment. And we will continue to monitor whether it conforms to environmental standards.

I'd like to visit Kaohsiung

Q: Quite a few Taiwan firms that have invested in Vietnam have reported that they have been bothered by administrative inefficiency and rules and regulations here. I wonder whether you have made improvements or are taking steps to respond in this area?

A: The party and the nation will continue to carry out our policy of liberalization and reform. The rules and regulations that have been announced for the zone, for instance, are intended to simplify application procedures for foreign firms wishing to invest and to provide even more beneficial conditions than the foreign investment law offers. We will provide benefits and make things as easy as possible for foreign firms because in cooperating with people you always have to consider their interests!

Q: Thank you for your interview, Mr. Vice Mayor. Finally, we would like to ask you, if you had a chance to come to Taiwan, what places would you like to visit?

A: I would list the Kaohsiung export processing zone as my first priority. I would very much like to see how the zone is managed and operated as a reference for us later, and I'm also interested in other industrial districts. A few days ago I read in the newspaper that the R.O.C.'s foreign exchange reserves have reached a new peak of US$89 billion. That's really amazing, and I'd liked to know how you did it.

[Picture Caption]

Nguyen Cong Ai, vice mayor of Ho Chi Minh City, says that Vietnam wants to study the "Taiwan experience." (photo by Huang Li-li)