With significant investment in building transport and industrial infrastructure as well as favourable mechanisms and policies in support of investors, Vinh Phuc is emerging as an attractive destination for Japanese businessmen.
|Honda Vietnam plant in Vinh Phuc's Vinh Yen city (Photo: VNA) |
Vinh Phuc – With significant investment in building transport and industrial infrastructure as well as favourable mechanisms and policies in support of investors, Vinh Phuc is emerging as an attractive destination for Japanese businessmen.
Japan is currently one of the top two foreign investors in the northern province, with 48 valid projects and nearly 1.2 billion USD worth of total investment.
Japanese conglomerates such as Honda, Toyota, Nissin, Exedy, and Sumitomo have selected the province to build their plants focusing on the production of automobile, electronic components, and spare parts.
Most of Japanese projects in the locality, particularly those of Honda and Toyota, have been implemented in line with schedules, operated effectively, thus contributing significantly to the provincial budget and creating jobs for locals.
The Japanese-based consultation company Nikken Sekkei has helped Vinh Phuc complete its urban planning by 2030 with a vision to 2050.
Most recently, in September, Toto Vietnam, a subsidiary of the Toto Group which produces construction materials, had asked local authorities for favourable conditions for its implementation of a 100 million USD project at the Thang Long Vinh Phuc industrial park.
TOTO Vietnam has invested in the country since 2002 with two factories established in Hanoi’s Dong Anh district and two others in nearby Hung Yen province.
The results were attributable to local authorities’ active work in building a favourable business climate via in-place investment promotion and prompt resolution of hurdles facing investors.
Aiming at markets with strengths in science and technology like Japan, local projects open for investment have been concentrated on the sectors of support industry, tourism services, high-tech agriculture, and socio-economic infrastructure development.
Vinh Phuc has also stepped up communication activities to promote local business climate, policies, potentials and opportunities in a creative, effective and practical manner.
The province established twin relations with Japan’s Akita prefecture. Annually, Vinh Phuc sends trade promotion delegations to the locality to boost its image among Japanese investors.
Meanwhile, the provincial People’s Committee and competent agencies have proactively taken part in conferences, forums and business matching events targeting Japanese investors held by different ministries, considering them an opportunity to introduce the local investment environment. Local authorities have also fostered good links with Japanese organisations, including the Japan Business Association in Vietnam (JCCI), Japan International Cooperation Agency (JICA), and Japan External Trade Organization (JETRO), in a bid to attract foreign capital and cooperation in organising promotion activities overseas.
As part of its investment attraction efforts, Vinh Phuc has been building its online portal to offer updated information to investors.
In 2018, the Vinh Phuc People’s Committee, the Sumitomo Group of Japan, and the local Thang Long Industrial Park Co., Ltd. signed a memorandum of understanding (MoU) on establishing an agency for promoting investment and supporting Japanese enterprises in investing in the province (Japan Desk Vinh Phuc).
According to Nguyen Tien Hanh, Director of the provincial Public Administrative Centre, the Japan Desk Vinh Phuc makes it easy for the province to introduce its investment and business climate, and for Japanese firms to seek partners and ask for approval for their investment projects in the locality.
Sumitomo is one of the five largest financial groups in Japan with experience in global-scale production and business sectors such as metal, means of transport, construction machines, infrastructure development, minerals, energy, chemicals and electronics. In Vietnam, the group has succeeded in developing, operating and managing industrial parks (IPs), including Thang Long I and II IPs, and Thang Long Vinh Phuc IP.
Sumitomo is responsible for seeking potential companies in Japan which intend to expand their business in Vinh Phuc, while assisting support industries in the locality.