According to the HCM City’s Department of Planning and Investment, at present, Japanese businesses are keen on investing in Vietnam, especially the southern key economic zones as established companies are adding capital and new projects are registering capital at an impressively high rate.
In line with this information, a report from Export Processing Zone (EPZ) and Hepza Industrial Park (IP), a series of Japan’s projects spearheaded the expansion into the city in 2013.
For example, Sai Gon Precision Co, LTd in Linh Trung IP, Tosok Co, Ltd, Nidec Tosok, Akiba Co, LTd and Juki Co, Ltd have increased their capital to US$129 million, US$95 million, US$10 million and US$12 million, respectively.
Notably, many other hi-tech international companies expanded their investment in Hepza including Roeders Vietnam from Germany, Marvel Vietnam Technology from Singapore and Kijima Musen Vietnam from Japan.
Last year, total investment in Hepza IP peaked atUS$608 million, up 47% over the previous year. In 2014, investment in Hepza is expected to cap out at US$550 million, up 10% compared to the 2013 plan.
According to the latest report by the Japan External Trade Organization (JETRO) on the Japanese businesses’ situation in Asia and the Ocean, 70% out of 435 Japanese businesses currently investing in Vietnam have plans to expand operations in the country.
Over 50% Japanese businesses listed Vietnam’s scale of market, growth capacity and political stability in Vietnam as advantages.
In 2013, Japanese investment in Vietnam increased from US$2.57 billion to US$2.78 billion. The report said that the Republic of Korea took the lead in terms of total new projects and expanded projects in Vietnam.
In addition, HCM City’s investment environment has been steadily improving, resulting in a relocation of many FDI projects from other provinces to the city.
To entice increased investment capital in 2014, Hepza said that EPZ and IPs have set aside 408 hectares of land and 67,400 square metres of workshop areas for investors in IPs such as Tan Phu Trung, Dong Nam, An Ha, Hiep Phuc and Tan Thuan EPZ.
In addition, the Vietnam-Japan Techno Park in Hiep Phuoc IP has been underway to attract investment from Japan’s small and medium-sized enterprises in the field of hi-tech support industry.
Last but not least, it is incumbent to streamline procedures of granting investment licenses, and conduct transparent and publicized administrative formalities, improve infrastructure facilities, and promote investment in green and hi-tech industry.
