Ho Chi Minh City, the largest economic hub in Vietnam, has implemented various innovative and effective measures in a bid to attract more Japanese investment.
A ground-breaking ceremony of Vie-Pan Industrial Park
It is currently calling on Japanese businesses to invest in such prioritised areas as chemicals, mechanical engineering, food and foodstuff, and especially support industries, using high and environmentally friendly technology.
Efficient Japanese operations
The HCM City Export Processing and Industrial Zone Authority (Hepza) reports in 2013 Japanese capital topped the list of foreign investment in the city, accounting for 45% of the total US$363.
Japanese businesses registering for operation expansion include Saigon Precision Ltd Company at Ling Trung Industrial Zone, and Nidec Tosok Ltd Company and Juki Ltd Company at Tan Thuan IZ.
Hepza chairman Vu Van Hoa says HCM City has 504 foreign directed investment (FDI) projects, including 112 from Japan. Japan ranks third among foreign investors in the city with a combined capitalization of more than US$3 billion, including US$1.3 billion in industry.
HCM City has fostered trade promotion both at home and in Japan to introduce its potential and attract further Japanese investment. A large number of seminars, exhibitions, conferences and meetings have been held between HCM City and Japanese businesses. Earlier this year, two investment promotion seminars were organised and well attended by businesses from both sides.
Yasuzumi Hirotaka, Chief Representative from the Japan External Trade Organisation (JETRO), said Japanese businesses are tending to shift their investment from regional countries to Vietnam to capitalize on lower human resource costs.
This is a big opportunity for Vietnam and HCM City in particular to attract Japanese investment. However, Japanese businesses are lacking in information about Vietnam’s investment environment that needs to be addressed very soon.
At regular dialogues, HCM City leaders always stressed they create the best possible conditions for Japanese businesses to invest and operate in the city.
In September 2013, the city granted an investment licence to Vietnam-Japan Technique Ltd Company – a joint venture between Japan’s Vie-Pan Industrial Park and Vietnam’s Hiep Phuoc Industrial Park Company, to build a Vietnam-Japan technology park (Vie-Pan Techno Park) on 13ha in the first phase and then expanded 100ha in the second phase to house Japanese businesses.
Le Manh Ha, Vice Chairman of the municipal People’s Committee, says this is a new model to attract Japanese capital. The project meets the city’s demand for building a special high-tech park for Japanese businesses only.
Vie-Pan Techno Park will not only provide workshops but also other convenient services, such as recruitment, investment consultancy, accounting, training, and management consultancy. These services will help Japanese investors save preparatory time and integrate and operate more smoothly.
The first phase of the park valued at US$7.6 million will be completed in September.
Experts say the new model will meet demand for receiving high quality investment resources from Japan to Vietnam in the future and take full advantage of available competitiveness at nearby Hiep Phuoc IZ.
With its available advantages and incentives in place, HCM City is now ready to welcome a new investment wave from Japanese businesses in the future.