Sojitz warns of neighbourly competition

December 03, 2012 | 10:45

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Japan’s Sojitz Corporation has proposed that the Vietnamese government offer foreign investors more incentives as a key measure to make Vietnam more attractive than other rivals, and thereby help attract more Japanese investors into Sojitz’s industrial parks in the country.

Takashi Ikeda, Sojitz’s president and chief executive officer for Asia and Oceania, said at a meeting with the Ministry of Planning and Investment on November 24 affirmed Vietnam was a good place for manufacturing. But he warned that Vietnam was also facing growing competition from other countries like Indonesia, Thailand and even Cambodia and Myanmar.

“Vietnam has advantages of labour costs and an abundant workforce that other countries also have. But these countries are actively changing their policies to attract foreign direct investment. Vietnam should not delay the change of its investment policy,” said Ikeda.

He said the Vietnamese government should give investors inside industrial parks more incentives, especially as more and more Japanese investors are increasing overseas investments. “At this time, Vietnam’s incentive policy is less attractive than in Thailand, Indonesia, Malaysia and Myanmar,” he added.

Sojitz invested into two industrial parks (IP) in south of Vietnam, Loteco in Dong Nai province and Long Duc in Long An province. Loteco, covering 100 hectares of land, has already fully occupied by 57 investment projected with the total investment capital of approximately $469 million.

Meanwhile, the 282-hectare Long Duc IP has attracted only three manufacturing projects. Sojitz has invested in 17 joint ventures in Vietnam since 1993.