Japanese investment focused in southern localities

Vietnam's southern localities remain attractive destinations for Japanese investors thanks to the completion of infrastructure systems coupled with an improved local business environment.

Recently, many Japanese firms, including Nitto Denko Corporation, Yuwa Co. Ltd., SKM Vietnam Co. Ltd., and AEON Co., Ltd., have received licenses in order to expand their factories in Binh Duong province with a total investment of US$168 million.

At the same time, Matsuya R&D Vietnam Co., Ltd, which specialises in producing medical equipment, has also launched its sixth factory in Dong Nai.

Currently, the southern industrial hub of Binh Duong, is a favourite investment destination of Japanese financiers who have pumped in close to US$6 billion across 350 projects throughout the locality, making the Far East nation the province’s second biggest foreign investor.

Mai Hung Dung, vice chairman of the People’s Committee of Binh Duong, said that the locality views Japan as its strategic investor, leading it to devise various measures in a bid to attract more Japanese investors.

Meanwhile, Dong Nai is hosting 272 Japanese-invested projects with a combined capital of US$5.59 billion. The Far East country ranks third among foreign investors in the province in terms of the projects number and capital.

Another favourite southern locality for Japanese investors is proviing to be Long An, where 138 Japanese-invested projects valued at US$767 million are operating, making Long An the leading hub for Japanese projects throughout the Mekong Delta region.

Since the beginning of the year, a series of inter-regional infrastructure projects have been launched in the southern region, which is the primary factor that turns the region into a magnet for foreign investors.

The Belt Road No.3 project with a length of 76.3km, crossing four localities of Ho Chi Minh City, Binh Duong, Dong Nai, and Long An, started in June. Construction on the Bien Hoa-Vung Tau expressway project and Phuoc An bridge connecting Cai Mep-Thi Vai port has also been launched, along with the expansion and connections of many national highways.

Moreover, many industrial parks in the southern key economic region have been expanded to create land funds for investors.
The reform of administrative procedures in many localities has also made foreign financiers more confident in doing business in the southern localities.

Experts say that with the removal of bottlenecks in infrastructure and investment environment, southern provinces and cities will attract a strong wave of investment, not only from Japan, but also from Western Europe and North America moving forward.

(Source:VOV)