Mekong Delta lures Japanese investors

08:53 | 26/02/2020 Economy

(VEN) - Apart from agricultural and aquatic resources, localities in the Mekong Delta also have an abundant workforce. With the quality of management by local government drawing praise, these factors enable the region to attract foreign direct investment (FDI), including Japanese funds.

mekong delta lures japanese investors
The Vietnam-Japan Friendship Industrial Park

According to the Ministry of Planning and Investment, Japan currently has 4,300 FDI projects in Vietnam with total registered capital of US$59 billion. Nearly 200 of these are based in the Mekong Delta with registered capital totaling more than US$2.2 billion.

Most Japanese companies currently operating in the Mekong Delta shared the opinion that the region offers favorable conditions to develop high-tech agriculture for export to Japan and many other markets. They have seen improvements in the local business environment. The city of Can Tho, for example, has built the Vietnam-Japan Friendship Industrial Park on an area of 30ha in the first stage of the project, which will be expanded to 42.9ha in the future.

Many Japanese companies have poured capital into Can Tho. Recently, Takesho Food & Ingredients Inc decided to invest US$8 million in a spice plant with design capacity of about 600,000 tonnes per year in the Tra Noc 2 Industrial Park. Construction of the plant is scheduled to begin in the first quarter of 2020 and finish in the first quarter of 2021.

The Marine Foods Corporation (Japan) and the Vietfoods Company Limited have broken ground to build a seafood processing plant in the Tra Noc 1 Industrial Park with total investment capital of US$14 million, looking towards exporting its products to Japan.

Apart from favorable conditions, Japanese companies also pointed to shortcomings of the Mekong Delta in terms of transport, logistics and infrastructure of industrial zones.

To surmount these shortcomings, the Mekong Delta needs to adjust its socioeconomic development plan according to Government Resolution 120/NQ-CP on sustainable development of the Mekong Delta and its adaptation to climate change. To improve the local investment environment, the region should boost investment in transport, irrigation and human resource development, while at the same time intensifying regional linkages.

In the opinion of Hirai Shinji, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, to attract more Japanese FDI, industrial zones in the Mekong Delta should be divided into plots of different sizes to meet diverse investor demand. He also suggested the construction of sample manufacturing facilities, which can be leased to investors as necessary.

In 2020, the Mekong Delta will carry out various activities to attract Japanese FDI. Direct flights from the city of Can Tho to Japan are expected to be launched in April 2020, along with the construction of a Japanese-style quarter in the city.

Thanh Thanh