Dong Nai Ready to Receive Investment Wave from Japan

Dong Nai has much potential for economic development such as good natural conditions, convenient location, abundant human resources, comprehensive infrastructure, smooth transportation, and harbour for ship of tonnage range 5,000 – 15,000 DWT to operate and location near deep water harbour complexes. In addition, some big projects such as Ho Chi Minh City -Long Thanh – Dau Giay expressway running across the province is under construction; international airport Long Thanh has been approved by the Government and is expected to start before 2015. Besides, Dong Nai is also Vietnam’s leading industrial developed province with 30 industrial zones given investment license.

 

Promoting such strengths, for the past years, Dong Nai has always been one of four leading provinces in the country in attracting foreign investment. So far, in Dong Nai there have been 13,000 domestic enterprises and nearly 1,000 foreign ones operating. Concerning foreign funded projects only, Dong Nai has attracted registered capital of over US$19.4 billion from enterprises in 35 countries and territories. Among those, Japan is ranked third in the number of investment projects in Dong Nai with 100 projects, total capital of US$1.9 billion, and over 40,500 labourers. Japan is also the top country in term of tax submit among foreign countries whose enterprises invest in Dong Nai.

 

Especially, recently, for only short time, there have been up to five new Japanese investors licensed in Dong Nai. Despite their small size, they operate in fields of mechanics, electronic, and high technologies, which are paid much attention by Vietnam and Dong Nai in particular, as well as being Japan’s strength, thereby, have initiated a new trend from Japan to Vietnam. In the list of investors newly licensed in Dong Nai, there are names of big ones such as Brother, Tiger, and Daitoh Industry.

 

Commenting investment environment in Dong Nai, Mr Keichi Muto – General Director of Toshiba Asia Company said that the decision to invest in Dong Nai was made since location is convenient, near Ho Chi Minh City, which makes it easy to recruit highly qualified human resource; transportation helps to easily deliver goods via harbour to the world market. More importantly, with investment in Dong Nai, the ability to access suppliers in the locality and neighbourhood is higher.

 

Representative from Toshiba Industrial Product Asia said that the company recently increased factory production in Amata Industrial Zone from 3,000 to 10,000 electric motors. At the end of this year, the company will also raise capital from US$24 to $40 million to fulfil orders from America. Mr Toshio Kazama, Director General of Long Binh Techno Park Development Company, a joint venture with Sojitz (Japan) said that the company decided to open a new industrial zone in Dong Nai on an area of 270 hectares, three times as large as the initial one, to greet investment wave from Japan and from Japanese investors in China moving their factories to Vietnam.

 

It can be seen that the evaluations and plans to expand investment are considered preferential conditions for Dong Nai to attract more investment capital from Japan. Ms Bo Ngoc Thu – Director of Dong Nai provincial Department of Planning and Investment said that most Japanese enterprises owns much potential, implements quickly and efficiently, well conducts environmental protection activities and take care of public benefits etc. Therefore, from 2011 to 2015, Dong Nai province targets GDP growth of 13-14 percent per year in the direction of sustainable development. It requires the province to mobilize much investment capital in modern technology, especially in high technology, supporting industries, other fields such as infrastructure and service facility etc from Japanese investors.

 

Additionally, in Seminar “Promoting Japanese investment into Dong Nai provinces” held in late July in Bien Hoa city, provincial Chairman Dinh Quoc Thai sent Japanese investors the message “Come to Dong Nai – safe and efficient investment destination”. Also according to Mr Thai, to actively greet investment wave from Japan, the province will prioritize to create open, preferential environment, especially condition to increase competitiveness for FDI enterprises investing in the locality. The province will also concentrate on strongly reform taxation, custom procedures and stabilize policies on land, labors etc; as well as be well prepared on technical infrastructure (electricity, water, transportation), meeting Japanese investors’ demand efficiently.