Hideyuki Okada, chairman of the Japan Chamber of Commerce and Industry in Vietnam (JCCI) in HCMC, said that Japanese investment in Vietnam has been on the upswing for years and is expected to rise further in the future.
The adequate workforce, political stability and large market have prompted Japanese investors to prioritize investments in Vietnam, compared with other ASEAN countries, the chairman said on the sidelines of a dialogue on October 15 in Binh Duong Province.
Apart from advantages for export activities thanks to multiple free trade agreements between Vietnam and other nations, the country’s thriving market of nearly 100 million people is considered highly favorable by Japanese investors.
Accordingly, the JCCI representative claimed that the influx of Japanese investment in Vietnam would rise sharply compared with other countries.
However, he voiced concern over the poor production infrastructure in some localities seeking to attract new investment.
A score of Japanese firms are pouring funds into the southern province of Binh Duong, but many parts of the province have little land left for manufacturers, he added.
Recently, multiple Japanese tech giants such as Panasonic, Sharp Manufacturing and Nitto Denko have expanded their operations in the province. As a result, manufacturers in supporting industries will set up shop there to supply parts to these tech firms. Therefore, Binh Duong should expand or develop more industrial zones to meet the rising demand for production among firms.
Japan is among the 64 countries and territories developing the most projects in Binh Duong Province. The country has 304 projects with total registered capital of US$5.65 billion in the province, accounting for 16.2% of the province’s total registered foreign investment capital.
Japanese investors have mainly poured capital into the production of electronic accessories, automobile assembly and manufacturing and supporting industries. Many others have also invested in the infrastructure, urban development, trade and service sectors.
Speaking at the conference, Binh Duong Chairman Tran Thanh Liem said that the conference was a good opportunity for provincial leaders to meet with foreign investors to listen to their opinions and proposals and work out solutions to their obstacles, making conditions favorable for these enterprises to boost their production and business activities in the province.
Liem also directed provincial departments and agencies to quickly remove obstacles hindering Japanese investors and all enterprises operating in Binh Duong as a whole, adding that the province appreciates the enterprises’ contributions to the province’s development and will continue to be an attractive investment destination for both domestic and foreign investors.
According to the Foreign Investment Agency at the Ministry of Planning and Investment, as of September 20, the country had attracted nearly 29,900 projects, with total registered capital of US$357.65 billion, from 132 countries and territories. Japan was Vietnam’s second largest investor with US$60.36 billion, accounting for 16.9% of the total, after South Korea with US$65.77 billion.
