Honda Vietnam plant in Vinh Phuc's Vinh Yen city (Photo: VNA) Vinh Phuc (VNA) – With significant investment inbuilding transport and industrial infrastructure as well as favourablemechanisms and policies in support of investors, Vinh Phuc is emerging as anattractive destination for Japanese businessmen.
Japan is currently one of the top two foreign investors inthe northern province, with 48 valid projects and nearly 1.2 billion USD worthof total investment.
Japanese conglomerates such as Honda, Toyota, Nissin, Exedy,and Sumitomo have selected the province to build their plants focusing on theproduction of automobile, electronic components, and spare parts.
Most of Japanese projects in the locality, particularlythose of Honda and Toyota, have been implemented in line with schedules,operated effectively, thus contributing significantly to the provincial budgetand creating jobs for locals.
The Japanese-based consultation company Nikken Sekkei hashelped Vinh Phuc complete its urban planning by 2030 with a vision to 2050.
Most recently, in September, Toto Vietnam, a subsidiary of theToto Group which produces construction materials, had asked local authoritiesfor favourable conditions for its implementation of a 100 million USD projectat the Thang Long Vinh Phuc industrial park.
TOTO Vietnam has invested in the country since 2002 with twofactories established in Hanoi’s Dong Anh district and two others in nearby HungYen province.
The results were attributable to local authorities’ activework in building a favourable business climate via in-place investmentpromotion and prompt resolution of hurdles facing investors.
Aiming at markets with strengths in science and technologylike Japan, local projects open for investment have been concentrated on thesectors of support industry, tourism services, high-tech agriculture, andsocio-economic infrastructure development.
Vinh Phuc has also stepped up communication activities topromote local business climate, policies, potentials and opportunities in acreative, effective and practical manner.
The province established twin relations with Japan’s Akitaprefecture. Annually, Vinh Phuc sends trade promotion delegations to thelocality to boost its image among Japanese investors.
Meanwhile, the provincial People’s Committee and competentagencies have proactively taken part in conferences, forums and businessmatching events targeting Japanese investors held by different ministries,considering them an opportunity to introduce the local investment environment. Localauthorities have also fostered good links with Japanese organisations,including the Japan Business Association in Vietnam (JCCI), Japan InternationalCooperation Agency (JICA), and Japan External Trade Organization (JETRO), in abid to attract foreign capital and cooperation in organising promotionactivities overseas.
As part of its investment attraction efforts, Vinh Phuc hasbeen building its online portal to offer updated information to investors.
In 2018, the Vinh Phuc People’s Committee, the SumitomoGroup of Japan, and the local Thang Long Industrial Park Co., Ltd. signed a memorandumof understanding (MoU) on establishing an agency for promoting investment andsupporting Japanese enterprises in investing in the province (Japan Desk VinhPhuc).
According to Nguyen Tien Hanh, Director of the provincialPublic Administrative Centre, the Japan Desk Vinh Phuc makes it easy for theprovince to introduce its investment and business climate, and for Japanesefirms to seek partners and ask for approval for their investment projects inthe locality.
Sumitomo is one of the five largest financial groups inJapan with experience in global-scale production and business sectors such asmetal, means of transport, construction machines, infrastructure development,minerals, energy, chemicals and electronics. In Vietnam, the group hassucceeded in developing, operating and managing industrial parks (IPs),including Thang Long I and II IPs, and Thang Long Vinh Phuc IP.
Sumitomo is responsible for seeking potential companies inJapan which intend to expand their business in Vinh Phuc, while assisting supportindustries in the locality./.
VNA
