Japan confirms its place as leading investor in Vietnam

Japan has so far invested in more than 1,700 projects in Vietnam, with a total registered capital of USD28.6 billion, making up 13.7 percent of the total. This puts the country at the top among 96 countries and territories pouring capital into Vietnam.

The construction of Bridgestone Hai Phong Car Tyre Plant.  Photo: baohaiphong.com.vn
The construction of Bridgestone Hai Phong Car Tyre Plant. Photo: baohaiphong.com.vn

According to figures by the Japan External Trade Organisation (Jetro), since a breakthrough in 2008, the number of Japanese business projects licensed in Vietnam continuously rose from 77 in 2009 to 208 in 2011. Since 2010, annual FDI value from Japan to Vietnam almost reached USD1.85 billion, while during the 1992-2009 period (except 2008), the figure always was less than USD500 million.

Japanese businesses were considered leaders in pouring capital into the processing and manufacturing industry, encouraged by the Vietnamese government. Amongst more than 1,700 FDI projects of Japan in Vietnam, there were about 990 projects in the industry, capitalized with an estimated USD23.3 billion, equivalent to more than 81 percent.

Since early 2012, Japanese investors kicked off numerous projects such as Tokyu Binh Duong Urban Area, Bridgestone Hai Phong Car Tyre Plant, Oshima Shipbuilding Khanh Hoa, an industrial zone coordinated by Shimizu Corp and N&G, and Thang Long Industrial Park expansion by Sumitomo. Some big companies also announced to open plants in 2012 such as JS Group, Tamron, Nippon Oil, MES and Shin-Etsu.

Promotion investment activities between Vietnam and Japan took place since the start of the year, specifically the signing of a memorandum of understanding about investment promotion between the Ministry of Planning and Investment of Vietnam and the Japan Chamber of Commerce and Industry on September 25, 2012, clear evidence that Japanese investment in Vietnam will be increasing.

The Vietnam Chamber of Commerce and Industry and the Japan Chamber of Commerce and Industry have recently held a dialogue between businesses of the two countries. Speaking at the dialogue, JCCI President, Mr. Toshio Nakamura said that earlier, Japanese small and medium-sized businesses often coordinated with bigger ones to invest overseas to establish a chain of satellite companies. However, the trend has recently changed as Japanese small and medium-sized businesses actively seek partners and investment opportunities in Vietnam, seeing the country as a attractive investment destination./.



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