Vietnam Catching Japanese SMEs

Japan is dealing with earthquake and tsunami aftermaths and focusing on economic development at the same time. Japanese companies are also gradually expanding investment activities. In the eyes of Japanese businesses, Vietnam is a favoured destination given that it holds certain advantages in long economic relations history, and suitable conditions to become production facilities for Japanese companies.

 

In July and August 2011, many Japanese business delegations arrived in Vietnam to explore opportunities for business cooperation. Vietnam now has favourable conditions for Japanese investors to do business. In July 2011, Mayor Kunio Hiramatsu of Osaka City, Japan and Vice Mayor Nguyen Thanh Tai of Ho Chi Minh City, Vietnam, signed a memorandum of understanding on “fields of cooperation priority” in the 2011 - 2015 period. This will be the basis for promoting bilateral cooperation in economics, human resources, environment and water management between the two cities.

 

Notably, in a few recent months, Marubeni Corporation, a leading multi-business company of Japan and a name in the Forbes Fortune Global 500 Corporations, the list of 500 largest companies in the world, has expanded investment and business cooperation with Vietnamese partners. In May 2011, Marubeni, which has business operations in 69 countries worldwide, signed a strategic cooperation agreement with the Vietnam National Textile and Garment Group (Vinatex). In late July, the Japanese group concluded a strategic cooperation agreement on farm produce, food and animal feed production and distribution with the Vietnamese Dong Nai Food Industry Corporation (Dofico). Marubeni expects that this cooperation will bring it to the market leader position in these business fields.

 

Remarking on the new wave of Japanese investors, Mr Nguyen Thanh Phi, Director of Long An Industrial Zones Authority, said, “After the disasters, Japanese investors have markedly boosted their investments in Long An province. Long Hau Industrial Park mainly houses Japanese investors. This industrial park also has a company specialised in promoting investment with Japan.”

 

Mayor Kunio Hiramatsu of Osaka City said “Small and medium enterprises (SMEs) account for more than 90 percent of companies in Japan. Although they are rated SMEs, they all have powerful capacity and high technical prowess to proceed into business cooperation with Vietnam.”

 

Mr Motonori Tsuno, Chief Representative of Japan International Cooperation Agency (JICA) in Vietnam, affirmed that his agency will continue supporting and cooperating in investment in Vietnam, specially attracting investment capital from Japanese SMEs in favour of developing support industries in Vietnam. He hoped that the business cooperation network by companies of the two countries and the relations between the Governments of Vietnam and Japan are growing deeper and wider.

 

Representatives of some Vietnamese industrial zones added that Vietnam is becoming an attractive destination for Japanese SMEs specialising in support industries. Developing supporting industries is a major priority policy of the Vietnamese Government and is expected to change the face of the Vietnamese industry in the coming years.

 

Deputy Minister of Planning and Investment Dang Huy Dong said opening up policy plus Vietnam’s advantages like a young, intelligent, creative workforce and a favourable geographical position together with a stable social and political background are the driving forces for investors, Japanese investors in particular, to strengthen investment cooperation with Vietnam.