Foreign direct investment (FDI) from Japan accounts for 22 percent of the total FDI in the capital city of Hanoi, creating 130,000 jobs and contributing US$109 million to the city's budget every year, equivalent to 61 percent of total budget payments from foreign-invested enterprises in the city.
Hanoi plans to primarily attract more investment from Japan in high-tech projects, industrial projects and the processing industry. High-quality services, including finance, banking, healthcare and human resources, are also seen as potential areas for Japanese investment. However, Hanoi has to hasten reforms in paperwork and create favourable conditions to boost the confidence of Japanese investors and attract further investment.
Mr Duangdej Yuaikwarmdee, Deputy Managing Director of Reed Tradex Co., Ltd. said: “According to the provincial Department of Planning and Investment, in the first quarter of 2014, Binh Duong ranks as the country’s biggest receiver of FDI with 2,276 projects, worth a total of nearly US$20 billion. Meanwhile, the northern port city of Hai Phong ranks second in FDI attraction with US$235.4 million in Q1 2014 and targets FDI of US$1.2 billion for 2014. To meet this target, the city will give priority to environmentally-friendly projects, supporting industry projects, and projects with high added value. Recently, the city has licensed 11 newly registered projects and saw 5 existing projects register to increase their level of investment capital. These include supporting industries, housing construction, trade and services, and automobile and spare parts manufacturing. The city has also attracted large projects with a high added value that use high technology and manufacturing techniques from Japan and Korea.”
At “Vietnam Manufacturing Expo 2014,” many Japanese companies have already confirmed their exhibits under “Japan Pavilion” such as JP Machine Network, Noda, Yanase and Gleason Asia.
Mr. Masato Hayashi, Senior Manager of Hitachi Asia (Vietnam) Co., Ltd. noted “Hitachi expects abundant business opportunities in the country, especially in the social infrastructure industries. In doing business in Vietnam, we have to take time to research many factors such as government policies and even its culture. Joining as an exhibitor would be a big opportunity for us to obtain such information. Besides continuing what we achieved last year, the show will give us the chance to not only introduce and promote our company but also to meet potential customers and manufacturers across Vietnam. We also expect to get more sales leads and networking opportunities this year.”
Mr Seiji Masuda, General Director of Sanko Fastem (Vietnam) Co., Ltd. added “Currently, Vietnam is one of the major investment destinations for Japanese companies and we are Japan’s largest company manufacturing anchor Bolts. With more and more factories sprouting in Vietnam, they need our anchor bolts to fix their structures and production lines. This is our 2nd time exhibiting at Vietnam Manufacturing Expo after getting multiple sales leads from the previous edition. This show is one of the effective marketing tools for us. Moreover, we would like to educate and train our customers on how to use anchors.”
To strengthen Supporting Industries in Vietnam, “Vietnam Manufacturing Expo 2014 (VME),” Vietnam’s Most Comprehensive Show for Manufacturing and Supporting Industries, and “Industrial Components & Subcontracting Vietnam 2014 (ICSV),” Vietnam’s most comprehensive sourcing platform for assemblers and manufacturers who are looking for quality auto-parts & industrial-parts or subcontractors, will take place from 27 – 29 August 2014 at I.C.E. Hanoi (Cung Van Hoa), 91 Tran Hung Dao Street, Hanoi, Vietnam. ICSV is co-organized by Hanoi Trade Promotion Center (HTPC) and supported by Hanoi People’s Committee.
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