Japan injects additional capital in Dong Nai province

Dong Nai (VNA) – Japan has affirmed its position as one of the two largest investors in the southern province of Dong Nai by landing further investments in the locality from the outset of this year.

Most of the capital came to the support industry, a field that the province is calling for investment to enhance input material supply capacity for local enterprises and lessen dependence on imports.

Mai Van Nhon, deputy head of the Dong Nai industrial zone management board, said Dong Nai has been an attractive destination for Japanese investors in recent three years, adding that most of the investments are in support industry, electricity, electronics, mechanics and machines.

From the beginning of this year, the province has constantly welcomed Japanese businesses studying and seeking investment opportunities.

Representatives from 22 enterprises in Japan’s Sakai city came to Dong Nai province this month to study investment opportunities. They made a fact-finding tour of local industrial parks like Amata and Long Duc.

Meanwhile, Kobelco Eco-Solutions Col., Ltd under the Kobe Steel Group proposed investing in the province’s clean water treatment. The company already jumped in investment in waste water treatment at Loteco and Long Duc industrial parks.

Experts said that Vietnam’s engagement in new generation free trade deals has brought numerous opportunities to enterprises operating in Vietnam, including those from Japan.

Dong Nai province has seen robust growth of exports to Japan since the Vietnam-Japan free trade agreement took effect. Last year, the locality shipped over 1.5 billion USD worth of products to Japan, up 11 percent year-on-year and Japan was the second largest export market of the province.

In recent years, local businesses have paid much attention to orders from the Japanese market to enjoy tax preferences.

A representative from Mabuchi Motor Vietnam Co., Ltd said that thanks to preferential policies, the company’s products become more competitive in the Japanese market and this makes production hike 13 percent each year. The company will enlarge their material production to reduce imports and meet demand from its partners.

According to the provincial Department of Planning and Investment, the province granted investment certificate to 31 foreign direct investment projects worth 314 million USD in the first three months of this year.

The province is currently home to 32 industrial parks. To date 44 countries and territories have invested in the province with over 1,200 investment projects.-VNA