Japanese escalate investment studies

Mitsui & Co. Global Strategic Studies Institute, an in-house think tank for Mitsui and 18 business members, made a one-week trip to various countries in Asia-Pacific, including Vietnam, to survey the investment environment, holding a working session with experts from the Institute for International Investment Studies (ISC) on November 15.

Japanese escalate investment studies, illustration photo/ Source: freepik.com

Jun Aketa, principal executive advisor of the institute, said, “After a long time investing overseas, we just need to improve the presence for Japanese companies in the region and in Vietnam. We want to listen to Vietnam’s opinion about the attractiveness, strengths and weakness of the Japanese companies as well as their challenges so that we can change and revise our presence.”

Based on the information collected from the trip, the institute will make a report on business strategies for the region.

“Japanese companies have invested a lot in China. But they will also point out there are some strategic growth problems and some anxiety about the political system as well as the economic situation. Thus, many Japanese companies consider a plan B for their expansion, and that’s why we decided to come to Vietnam on this trip, among other nations.”

During the working session with the ISC, the Japanese delegation concentrated on exchanging topics relating to the business situation of US, European, Chinese, and Japanese companies in ASEAN; the strengths and weaknesses of Japanese companies in the Indo-Pacific region; and the impact of free trade agreements on the investment and business of Japanese companies.

In addition, they wanted to listen to opinions on cooperation opportunities, and the new investment sector in Vietnam. “Mitsui is one of the largest corporate conglomerates (keiretsu) in Japan, thus their investment activity must be calculated carefully,” said ISC president Phan Huu Thang. “Study activity is critical, especially amid the complicated and unpredictable global situation affecting investment activity. The good news is that this region and Vietnam in particular are still considered a safe investment destination.”

Thang added that the trip has opened up big opportunities for Vietnam in attracting new investment inflow from Japanese companies. “It is rare that a keiretsu leads nearly 20 members to many countries to work with institutes and businesses for information on specific topics, instead of participating in forums to discuss macro policy as is usual,” he said.

Since the start of 2023, Japanese investors have pumped just over $3 billion into the country. Accumulated capital as of October was $74.4 billion across almost 5,230 projects.

More activity could be on the way. During a working session with Prime Minister Pham Minh Chinh in Hanoi on November 13, president and CEO of Marubeni Corporation Masumi Kakinoki underlined its strategy to expand in Vietnam.

“Vietnam is one of our most important markets in Asia. Marubeni Corporation plans to invest billions of US dollars with a focus on new seven sectors, such as energy, processing, exports, and infrastructure development. We hope the government will direct its ministries and local authorities to facilitate the implementation of these projects,” Kakinoki said.

The group has plans to develop O Mon II thermal power plant and Quang Ninh liquefied natural gas power project, as well as solar and wind farms, industrial zones, and smart urban projects, among others.

In the framework of the sixth meeting of the Vietnam-Japan Joint Committee for industrial, trade and energy cooperation took place in Hanoi on November 3, Minister of Industry and Trade Nguyen Hong Dien and Japanese Minister of Economy, Trade and Industry Nishimura Yasutoshi agreed to establish a joint working group to build co-creation projects to boost future-oriented industries such as semiconductors, AI, and biotechnology.

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