Central city and Gifu Shinkin bank ink MoU on investment

Representatives of the central city’s Investment Support and Promotion Board and Gifu Shinkin bank from Japan sign a Memorandum of Understanding (MoU) on investment promotion for small and medium-sized enterprises from Japan in Da Nang.-Photo Diem Phuc

Gifu Shinkin, the largest bank in Gifu, Japan, has more than 156,000 customers, of which seven are Japanese enterprises in Da Nang.

Director of the city’s Investment Support and Promotion Board, Le Canh Duong, said this was the first MoU that the board has signed with a Japanese bank.

He said Japan is the biggest investor in Da Nang, with 113 projects worth $397.5 million – 10.78 per cent of the accumulated foreign direct investment (FDI) projects in the city – creating 32,000 jobs.

Duong said 84 per cent of Japanese investment is focussed on manufacturing, food processing, construction and information technology, while healthcare, real estate, tourism and education have emerged as new investment fields among Japanese investors in recent years.

Bank Chairman Masatoshi Takahashi said many Japanese investors eye Da Nang investments and are eager to explore the investment environment there.

Takahashi said a business delegation from Aichi will visit Viet Nam next March, and Da Nang will be a favored stop.

Đà Nẵng has smoothed the way for Japanese investors by setting up a Japanese to support investors by explaining administrative procedures, investment licences, policies and other issues.

The city has developed an Information Park on 344ha of land in Hoa Vang District and an IT park on 55.6ha nearby, where space has been reserved for IT investors from Japan.

The city also plans to build an industrial park for small- and medium-sized businesses from Japan on 134ha.

Da Nang will begin construction of the Japan-Viet Nam Culture Centre in Ngu Hanh Son District and launch a new direct flight from Da Nang to Osaka next year.

The Route Inn Group from Japan has started construction of a coastal resort, the first of its kind in Viet Nam, with a total investment of $18 million, while the Japanese JP Holdings company plans to invest in a high-quality kindergarten education project in the city from next year, with estimated capital of $5 million.

According to the latest reports, Da Nang has attracted 423 foreign investment projects worth $3.68 billion to date.

Last year, the board also inked a MoU with KPMG, one of the largest audit, tax and advisory firms in the world, on co-operation, investment promotion and providing service for businesses and investors in Da Nang.

The central city greatly improved its administrative reform and Provincial Competitive Index over the past few decades, but poor investment promotion abroad has prevented key investors from approaching the city and central region in recent years.