Vietnam seeks more Japanese investment

08:36 | 08/01/2018 Cooperation

(VEN) - At a recent meeting with a Japan Business Federation (Keidanren) delegation at the headquarters of the Ministry of Industry and Trade (MoIT), Minister Tran Tuan Anh pledged to create a favorable environment to boost trade between Vietnam and Japan and apply support policies to encourage Keidanren member companies to invest in Vietnam.

vietnam seeks more japanese investment
Minister of Industry and Trade Tran Tuan Anh (second from the right) welcomes Keidanren delegation and urges member companies to invest in Vietnam

In recent years, economic relations, trade and investment between Vietnam and Japan have yielded good results. The chairman of Keidanren’s Japan-Vietnam Economic Committee, Kuniharu Nakamura, head of the delegation, said Vietnam attracted more than US$38.5 billion in foreign direct investment (FDI) in 2017. He noted that Japan’s investment had reached a record high, and emphasized the importance of cooperation between the two countries, in general, and between the Japanese Ministry of Economy, Trade and Industry (METI) and the MoIT, in particular.

The Keidanren is willing to cooperate with Vietnamese partners in the fields of infrastructure, energy, processing industry, food industry, and wishes to receive further support from the MoIT, he said. Foreign Investment Agency data show that from January 1 to November 20, 2017, Japan was the largest foreign investor in Vietnam with 329 new projects totaling US$8.9 million in registered capital. By November 20, Japan ranked second among 126 countries and territories investing in Vietnam, with 3,577 ongoing projects and total registered capital of US$49.12 billion.

Minister Tran Tuan Anh affirmed Vietnam’s determination to build a constructive government that considers the private sector and FDI businesses an important driving force of the Vietnamese economy. He said the government would continue supporting and creating an open and favorable environment for foreign businesses to maintain and expand operations in Vietnam.

Minister Tran Tuan Anh proposed two measures to provide maximum support for Japanese investors: 1) organizing policy dialogues between businesses (Keidanren) and state management authorities (METI and MoIT), and maintaining existing cooperation mechanisms that are working effectively (joint working groups on automobile, support industries and energy) in the framework of the Japan-Vietnam Joint Committee on Cooperation in Industry, Trade and Energy; 2) organizing direct dialogues between the Keidanren and the MoIT to deal with pending problems after the sixth phase of the Vietnam-Japan Joint Initiative.

Minister Tran Tuan Anh also asked Keidanren to coordinate with the METI to accelerate implementation of support packages committed by Japan for Vietnam in a letter of intent signed between the METI and the MoIT in September 2017. He emphasized the importance of human resource training support projects and said training should be combined with technology and management technique transfer to meet Vietnam’s development requirements in the context of the fourth industrial revolution.

Keidanren representatives and Japanese Ambassador to Vietnam Kunio Umeda agreed with Minister Tran Tuan Anh on his proposals and affirmed the Japanese side would promote new cooperation mechanisms to encourage more Japanese companies to invest in Vietnam.

Kim Chi