Aggressively growing investment in industry
- Thursday - 22/10/2015 10:06
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For the last few years, foreign direct investments in Dong Nai mostly come to supporting industries. FDI enterprises’ purposes are to enjoy the incentives of tariffs and free trade agreements and to keep ahead of Trans-Pacific partners Agreement (TPP).
According to the Department of Planning and Investment, recently industrial investment projects in the province have been growing aggressively. Some of these projects invest from several tens to hundreds of millions USD. Soon after granting certificates, most of FDI enterprises deploy the construction of manufacturing plants and start operation. Some projects have completed their workshop construction and started operation 4 – 6 months after renting land.
Yamashita Plastic Vietnam (from Japan) Co., Ltd., located at Nhon Trach Industrial Zone 3, specialized in manufacturing components to serve the industries of electronics, sound equipment, vehicles and motorbikes
Investing in various areas
Since 2014, Dong Nai province has issued new investment certificates for 168 FDI projects, which mostly come to supporting industries. The areas of investment variously include: producing types of yarn, components, machinery equipment and raw materials for textile industry, footwear and products serving the industries of electronics, vehicle production and sound equipment… FDI enterprises invest in supporting industries to provide supplies to domestic market and head to export markets to take the advantages of tariff incentives of from free trade agreements and the coming TPP agreement.
Mr. Ying Minh Yang, Chairman of Managing Board of Kenda Group (from Taiwan) shared that: “Our Group has made investment in a new manufacturing facility making inner tubes and tires for cars, motorbikes and bicycles in Dong Nai, since the main material, natural rubber, is available in this province. Our products are aimed to be consumed in Vietnamese market and exported to the US.
Recently, Forval Group (from Japan) has cooperated with Tin Nghia Corporation to found Japanese small-and medium-size enterprise development joint-stock company specialized in constructing facilities for Japanese enterprises to lease in Nhon Trach Industrial Zone 3 (in Nhon Trach district). Now there have been more than 10 Japanese enterprises leasing facilities to make electrical components and devices and machines to provide supplies to Vietnamese market and export to overseas markets.
Mr. Hideo Okube, President of Foval Group cum Chairman of Support Committee for Japanese small-and medium-sized enterprises investing in overseas, said that: “Dong Nai is one of the most ideal investment destinations to attract Japanese enterprises. Therefore, for the last 3 years, many Japanese enterprises have leased land and facilities in Dong Nai province for their production. Supporting industries that are prioritized to attract investment are also the strength of Japanese small – and medium – sized enterprises. In the coming time, there will be more Japanese enterprises coming to make investment in the province”. Most of enterprises making their investment in supporting industries possess high and environmentally friendly technology, meeting the standards of the province.
Many big projects
Among the projects investing in supporting industries in Dong Nai, there are many large capital projects such as: Hyosung Dong Nai Co,. Ltd. (from Turkey) specialized in making yarn with 660 million USD of investment capital; Kenda Group (from Taiwan) investing in a new facilities to make tires for cars, motorbikes and bicycles with 160 million USD of total capital; SMC Manufacturing Vietnam Co., Ltd. (from Japan) specialized in making automatic controllers for cylinders, valves and valve seats with 112 million USD of capital; Kuk II Vietnam Co., Ltd. and Dong Il Vietnam Co., Ltd, two yarn making companies from Korea, with 56 million USD and 52 million USD of investment capital respectively.
Mr. Do Nhat Hoang, Director of Foreign Investment Department (Ministry of Planning and Investment) shared that: “Currently, processing and manufacturing industry accounts for 52% of total FDI (more than 132 billion USD) in Vietnam. 84% of Japanese investment projects come to processing and manufacturing industry, which is being prioritized to attract foreign investment to improve raw material supply sources for domestic industrial production to enjoy tariff incentives when deeply taking part in integration”. Since the beginning of this year, many enterprises from Japan, Taiwan, the US, Singapore, Thailand, and the United Arab Emirates… have come to Dong Nai to study local policies with the intention of investing in the province. Among these enterprises, there are many enterprises specialized in supporting industries and most of them possess high technology.
According to Mr. Dinh Quoc Thai, Chairman of the Provincial People’s Committee, with more than 30 industrial zones with finished infrastructures and convenient traffic systems, Dong Nai province is and will still be the attractions for foreign investors. The province continues to attract investment very selectively. Accordingly, high technology, manufacturing and supporting industry and environmentally friendly projects are highly prioritized.
Hương Giang