Vinh Phuc province currently has over 440 FDI projects, including 48 Japanese projects with a total investment of over US$1.2 billion. Japanese projects, mainly located in large-scale industrial zones, typically use modern manufacturing technologies of automobile, motorcycle, mechanical engineering and automotive manufacturing. They are presently employing more than 22,000 workers.
Japanese enterprises have continuously increased investment in the past years, for example from 27 in 2015 to 59 in 2019. Their revenue rose from VND108.715 trillion in 2015 to VND162.56 trillion in 2019 and VND115 trillion in the first nine months of 2020. The business performance of Japanese firms is always stable and positively helps local socioeconomic development. Japanese companies always comply with tax policies and become the biggest foreign taxpayer for Vinh Phuc province. Specifically, they paid VND18,469 billion to the State Budget in 2015, accounting for 82.55% of the province’s total budget revenue, VND21,500 billion, accounting for 69.54%, in 2019. Although their business performance was hurt by the Covid-19 pandemic, Japanese companies still paid VND10,473 billion to the budget in the first nine months of 2020.
By Nguyet Tham, Vietnam Business Forum