10:42 | 02/03/2017 Investment
(VEN) - Vinh Phuc Province northwest of Hanoi has long been a hub of Japanese investment, manufacturing and trade activity. The deputy chairman of the provincial People’s Committee, Le Duy Thanh, tells Vietnam Economic News about the firms that have already set up operations there and the activities undertaken by local authorities to attract additional investors, a major policy goal of the province.
Many large Japanese investors operate in Vinh Phuc
Japanese giants in Vinh Phuc
According to the province’s Investment Promotion Agency, as of the end of 2016, Vinh Phuc attracted 231 foreign direct investment (FDI) projects totaling US$3.58 billion in registered capital from 15 countries and territories worldwide. Japan ranked third in terms of numbers of projects and registered capital (26 projects worth US$786 million) and first in terms of invested capital ratio (88.1 percent of registered capital).
Japanese investment in the province was mainly focused in automobile manufacturing and assembly, engineering, molding and electronic component industries. Many big Japanese investors, including Honda, Toyota and Sumitomo, have been operating successfully in Vinh Phuc for a long time. Honda Vietnam began investing in the province in 1996 with an initial capital of US$104 million. The company has so far increased its capital six times to US$410 million.
Chairman Le Duy Thanh said that apart from economic contributions, Japanese companies in Vinh Phuc attach great importance to human resource development and corporate social responsibility, taking part in many charitable activities. Toyota has contributed more than US$15 million to social activities in Vietnam. Toyota has enhanced community activities to promote socioeconomic development, particularly to improve the quality of education and training and human resource development in Vietnam on a stable and long-term basis.
Vinh Phuc has worked hard to make a strong impression on Japanese investors and grow their numbers and capital. The province has hired Nikken Sekkei - a consulting company from Japan - to prepare an overall urban plan for Vinh Phuc to 2030 with a vision to 2050, which has been approved by the Prime Minister. In late 2015, Japan’s Sumitomo Corporation was officially licensed by the Vinh Phuc Province People’s Committee to implement the Thang Long Vinh Phuc Industrial Park infrastructure project.
The 213-hectare industrial park is specifically designed for Japanese investors. The project is expected to be completed and put into operation in 2017. Such measures will help Vinh Phuc attract more investors from Japan in the near future, said Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) at a Vietnam-Japan Economic Dialogue in early 2017.
Vinh Phuc is also working with the Japan Chamber of Commerce and Industry (JCCI) to encourage Japanese businesses to invest in Vinh Phuc. The province invites Japanese firms to come to survey investment opportunities while attending seminars and forums organized by the JCCI to introduce Japanese investors to the provincial investment environment and opportunities.
In 2017, Vinh Phuc Province will launch a Japan desk to provide the best assistance for Japanese businesses that are
investing or have a plan to invest in the province.