Attraction towards Japanese investors
- Monday - 25/05/2020 15:00
- Close page
Currently, Japan is ranked 3rd among countries and territories investing in Dong Nai. Most Japanese enterprises investing in the province are doing quite well. In particular, there are businesses to have increased capital to 2-4 times compared to the initial capital after a few years of investment.
Japanese enterprises have now invested about 260 projects with a total registered capital of more than 4.7 billion USD in the province. They mainly invest in supporting industries as the right industries in Vietnam as well as for those called for priority. The objective is to increase the localization rate for products and meet the requirements of goods origin so that Vietnam can enjoy preferential tax policies when exporting to countries with which Vietnam has signed free trade agreements. Japanese enterprises in the field of supporting industries investing in the province are to provide input products for large Japanese corporations operating in Dong Nai and other provinces in Vietnam.
Up to now, many large Japanese corporations have invested in Dong Nai such as Sojitz, Fujitsu, Shiseido, Forval, Mitsubishi, and Ajimonoto, etc.
Chairman Cao Tien Dung assessed that Japanese enterprises have invested in Vietnam from early on, many of which have been in operation for 25 to 30 years; most of those enterprises are successful. In particular, Japanese enterprises have a good connection with Dong Nai enterprises. In the past few years 4-5 years, there have been a rapid increase in Japanese enterprises to invest in the province and most of the fields are in prioritized sectors being called for investment. They abide by the regulations on environmental protection very well and treat their employees fairly.
Mr. Hiroyuki Nakayama, Chairman of the Board of Directors of Nakatec Co., Ltd., representative of Fukui Chamber of Commerce and Industry (Japan), coming to Dong Nai to learn about the investment environment, assessed that: "Dong Nai will be continuously chosen for investment by Japanese businesses because there are many advantages for their needs. Specifically, the province is a transport hub of the Southern key economic region and developing industries; therefore, it is easy for the businesses to find partners to provide input and output products.".
Beside industry, Japanese investors are expected to invest in trade in services, agriculture, infrastructure, etc.
* 2nd largest export market
Dong Nai is quick to take the advantages of the Vietnam-Japan Economic Partnership Agreement (VJEPA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for trade expansion with Japan. Currently, Japan has become the second largest export market of the province behind the United States only.
According to Dong Nai Statistical Office, Dong Nai's export turnover to Japan in the first four months of the year was estimated at nearly 700 million US and imported about 430 million US. This is the major import-export market of the province. Dong Nai had export surplus of nearly 270 million US to Japan in the first four months of 2020. Trade between Dong Nai and Japan increases over 10% per year.
Dong Nai mainly exports machinery, equipment, tools and spare parts; textile; footwear; computers, electronic products and components; and wooden products, etc. to Japan and mainly import raw materials for industrial production.
Mr. Okada Hideyuki, Chairman of Japan Business Association in Ho Chi Minh City, said: “The trade between Japan and Dong Nai has continuously increased over the years. Dong Nai has become an important trading partner of Japan. In the coming years, the import and export between the two sides will be highly increasing when more Japanese enterprises come to invest in the province”.
The reason for the rapid increase of import and export between the province and Japan is that the enterprises in Dong Nai have timely seized the opportunity from two trade agreements, namely VJEPA and CPTPP, to have many tax lines falling sharply to 0%.
Mr. Yoshida Mizuho, CEO of Vietnam Kaneko Co., Ltd, Nhon Trach 3 Industrial Park, Phase 2 (Nhon Trach District) said: “The company chose Dong Nai to set up a factory with the purpose of producing components for machines to provide the domestic market and exporting to Japan and ASEAN markets for tax incentives." This is a company with 100% capital from Japan.
Vi Quan