Workers at a Japanese-invested firm in Dong Nai province (Photo: VNA)

Hanoi (VNA) – As of June 2018, Japanese businesses invested in nearly 240 projects with total registered capital of over 4.2 billion USD in Dong Nai, ranking third among more than 40 countries and territories pouring investment in the southern locality.

Many big groups from Japan include Ajinomoto, Forval, Sojitz, Kobelco, Daiwa and Fujitsu, are operating profitably in the province, according to the provincial Department of Planning and Investment.

[JETRO: Japanese firms intend to expand business in Vietnam]

Most newly-licensed projects have also quickly completed construction and become operational on schedule.

In early June, Japanese-invested Kyokuto Vietnam Co., Ltd. put into operation a plant at Nhon Trach 3 industrial park, specializing in the production of circuit breakers, electronic components, and plastic products.

The plant was built on over 2.8 hectares with an investment of nearly 10 million USD. It has a design capacity of over 5,000 tonnes of products per year for domestic sales and export to Japan, China, ASEAN, Europe and the US.

Earlier, Sanko Metal Vietnam – another company invested by Japan – injected some 2 million USD into the second phase of it plant manufacturing sun louvers at Nhon Trach 3 industrial park. 

Apart from manufacturing projects, Japanese retail, service and logistics enterprises have been actively studying the local investment attraction policies.

Aeon Group, a leading retail group in Japan, has recently proposed investment in building a supermarket on some 10 hectares at the centre of Bien Hoa city.

The company said if it can get an investment licence this year, it will start construction immediately in order to open the supermarket at the end of 2019.

Deputy head of the management board of Dong Nai industrial parks Mai Van Nhon said most of Japanese-invested projects are in the fields of local priorities.

After over three years of operation, Long Duc industrial park which has its infrastructure built by a Japanese investor has filled nearly 80 percent of its land area with 42 projects worth over 920 million USD.

General Director of Long Duc Investment Co., Ltd. Masahiko Kamata said the number of Japanese firms choosing Vietnam as an investment destination is increasing. They not only aim to manufacture products for exports but also to provide for the domestic market, he added.

According to the latest survey conducted by the Japanese External Trade Organisation (JETRO), up to 70 percent of Japanese businesses said they want to expand operations in Vietnam, a year-on-year rise of 10 percent.

The survey revealed that more than two-thirds of the 652 Japanese enterprises operating in Vietnam have expansion plans, mainly due to the country’s rising revenue and high growth potential.

It also showed that 65.1 percent of Japanese companies recorded profits in Vietnam last year, while 19.4 percent reported losses.-VNA