After 40 years of developing diplomatic relationship between Vietnam and Japan (Sept. 21, 1973-2013), tie between the two nations has become very good. More and more Japanese businesses have flocked to Vietnam to develop their investment projects. In Binh Duong, Japanese businesses’ investment capital source has increased rapidly and Japan has led in investment projects in Binh Duong. Japanese businesses’ effective operation has spurred Binh Duong’s economic development.
The provincial People’s Committee
chairman Le Thanh Cung (fourth from right) and Yoshinori Yakabe, deputy
Consul-General of Japan in HCMC take a souvenir photo with
Japanese businesses at the 2nd investment certificate granting
ceremony 2013.
A strong capital source
Until now, FDI investment in Binh Duong has reached 2,192 projects, capitalized at nearly US$18.5bil. Of this, Japan has been the second largest nation in investment capital source in the province with 182 projects, capitalized at $3.2bil, accounting for about 17.3% of the total FDI capital in the province. On average, each Japan project accounts for nearly $17.6mil in investment capital. This is the highest figure among nations and territories investing in the province so far.
Investment capital source from Japanese companies has been constantly increased. Specifically, Japanese businesses’ investment capital won 26% of the total capital in the locality in 2011 and 75.08% in 2012. In the first 9 months of this year, many big Japanese projects have been invested in the province. They include a $38mil project invested by Panasonic Ecosolutions Vietnam Co.Ltd. in VSIP II; a $47.6mil paper production project of Tomoku Vietnam Co.Ltd in My Phuoc II IP; a $104mil beverage project of Maruzen Foods Corporation in My Phuoc III IP and so on.
Aside from new investors, many Japanese businesses operating effectively in the province have increased their investment capital to expand production and business. A series of capital-increased Japanese projects in the past 9 months include Takigawa Vietnam Co.Ltd., GS Vietnam Co.Ltd, Uchiyama Vietnam Co.Ltd., Forte Grow Medical Vietnam Co.Ltd., Starwood Vietnam Co.Ltd., EB Binh Duong Co.Ltd. and many more.
The increase of capital has an important significance in both increasing goods and showing effective investment environment of the province.
Advantaged investment
Overall, Japanese investors have soon put their projects into operation. For instance, Tomoku Vietnam Co.Ltd.’s project has an area of 6ha with a large production scale. Tomoku Vietnam Co.Ltd.’s general director Takashi Nara said that the company’s factory will be put into operation in Oct. 2014. Similarly, Maruzen Foods Corporation’s project will be put into operation soon.
Tomoku Vietnam Co.Ltd.’s general director Takashi Nara revealed “The factory in Binh Duong is our first abroad project. We highly value Binh Duong’s investment environment with many advantages of infrastructure facility and provincial leaders’ care and so on. These factors have increased our trust”. Meanwhile, Maruzen Foods Corporation’s CEO Toshiyuki Hayashi said “After a survey of investment environment in Vietnam, we realize that Binh Duong is the best location for launching our project”. Regarding Binh Duong’s potentials of investment attraction, Yamaguchi Kimio, chairman of Japanese Business Association in HCMC said that with its thorough preparation, Binh Duong will continue attracting Japanese investors.
Yoshinori Yakabe, deputy Consul-General of Japan in HCMC said that in the past years, Japan and Vietnam are strategic partners and have an intimate tie. As for Vietnam-Japan economic tie, rate of Japanese ODA for Vietnam has always been in the top among international sponsors. Japan is also a nation leading in the number of investment project in Vietnam; Japanese businesses’ investment capital in 2012 won $5.1bil. In the first half of this year alone, Japanese businesses’ investment capital accounted for $4bil, leading in foreign investors in Vietnam.
Binh Duong has constantly maintained stable economic development and been a dynamic locality of economic operation. It is sure that Binh Duong will develop into a modern city of Vietnam and the Southeastern Asia region. Located at the Southern key economic zone plus a good investment environment, Binh Duong has become an attractive locality for foreign investors. We are very happy to see many Japanese businesses investing into Binh Duong and hope that Japanese businesses will spur local economic growth and increase foreign investment projects in Binh Duong.
Reported by T.Minh – Translated by A.C
