Japanese investors keen on Vinh Phuc Province

The signing ceremony of a memorandum of understanding on cooperation between Vietnamese and Japanese firms

Support for businesses

Large Japanese groups have invested in Vinh Phuc since the 1990s and still want to maintain long-term operations in the province. Among them are Toyota and Honda. The two groups began investing in Vinh Phuc in 1996 and have contributed significantly to the province’s socioeconomic development.

According to Vu Viet Van, Vice Chair of the Vinh Phuc Province People’s Committee, Japanese FDI projects are concentrated in the automobile, motorcycle and manufacturing industries, contributing 70 percent to the annual budget revenue of the province, and generating jobs for more than 24,000 workers. Projects using Japanese official development assistance (ODA), including the US$152 million project helping Vinh Phuc improve its investment environment, have helped the province resolve problems such as electricity and water shortages, water drainage and wastewater treatment.

Mihara Daiki, General Director of Honda Vietnam, said his company had received active support from Vinh Phuc Province to overcome difficulties in implementing administrative procedures, tax payment, site clearance, and other activities. The support has encouraged the firm to expand its operations in Vietnam, generating jobs and contributing to the country’s economic growth, he added.

Improving investment environment

According to Do Nhat Hoang, Director of the Foreign Investment Agency of the Ministry of Planning and Investment, Vinh Phuc has a favorable geographical location and adequate infrastructure, with trained workers accounting for 55 percent of its workforce.

Vinh Phuc has become a pioneer in improving its investment and business environment. Its active support for investment projects is one of the factors making the province attractive to foreign investors.

Nguyen Van Do, Director of the provincial Department of Planning and Investment, said Vinh Phuc has built product supply chains in the automobile and motorcycle sectors, a favorable condition for the province to attract foreign investment. Vinh Phuc encourages foreign investment in all fields, except projects polluting the environment, and prioritizes investment in food processing and farm produce.

So far, the prime minister has approved Vinh Phuc’s plans for 19 industrial parks (IPs) on a total area of 5,487.31ha. Of those, 16 IPs have been established. Under its plan for the 2021-2030 period, with a vision to 2050, the province will develop an additional eight IPs to raise the total to 27, making it more attractive to investors.