Safe, Attractive Destination for Japanese Investors

9:51:31 AM | 27/7/2023

Vinh Phuc province has a favorable geographical location, convenient transportation system, and synchronous infrastructure. It has taken the lead in reforming and improving the investment and business environment. As a result, it is strongly appealing to many investors, especially Japanese.

Chairman of Vinh Phuc Provincial People's Committee Le Duy Thanh at the signing ceremony of the MoU on business cooperation between Vietnam and Japan

Vinh Phuc province has attracted nearly 60 projects from Japanese investors, who have registered to invest over US$1.6 billion. Japan is currently the second-largest investor in Vinh Phuc after South Korea. The province ranks first in capital disbursement and investment performance. Japanese investors in Vinh Phuc province mainly specialize in mechanical engineering, automobile, motorcycle, electronic equipment, and industrial zone infrastructure. FDI firms in industrial parks account for 88% of taxes paid by FDI companies in the province. Vinh Phuc is home to many transnational corporations such as Honda, Toyota and Sumitomo. Recently, Sojitz Group invested in the “cow farming and beef processing” project in Tam Dao district, a joint venture with Vietnam Dairy Products Joint Stock Company.

Successful destination for Japanese firms

Being present in Vinh Phuc province in the early days of provincial reestablishment nearly 30 years ago, Honda Vietnam Company and Toyota Vietnam Company, which are active in industrial processing and manufacturing, are frequently ranked among the best-performing FDI firms and leading taxpayers in Vietnam. The successful business investment of the two firms created an attractive appeal to Japanese investors as well as FDI investors.

A representative of Honda Vietnam remarked on the Vinh Phuc investment environment, saying that the company chose Vinh Phuc to locate its head office and projects on over 70 ha of land (with two motorcycle manufacturing and assembling factories, one automobile manufacturing and assembling factory and one modern driving training center in Vietnam). Since its advent nearly 30 years ago, Honda Vietnam has been supported by the Vinh Phuc government and always felt safe and assured of its investment in Vinh Phuc.

Besides the processing and manufacturing industry, Vinh Phuc has called Japanese investors into infrastructure development, typified by Japan’s Sumitomo Corporation. In 2015, Sumitomo Corporation of Japan decided to develop Thang Long III Industrial Park in Vinh Phuc to attract Japanese investors. Covering a total area of 213 ha and costing over US$135 million for construction, Thang Long III aimed to attract non-polluting industries, with priority given to high-tech projects like engine manufacturing, industrial parts manufacturing for automobile and motorcycle industries, electronics and precision engineering.

Sumitomo’s representative gave three reasons for choosing Vinh Phuc province. Firstly, Vinh Phuc has rich natural conditions and a lot of trees, helping Japanese investors feel at home. Secondly, Vinh Phuc has a favorable geographical location with a developed transportation system, helping investors easily access major traffic routes. Finally, the complete infrastructure and the support of provincial leaders are also important factors for Japanese companies to select Vinh Phuc for their investment.

Recently, construction was started on Vinabeef Tam Dao Breeding and Processing Complex, the first project in the high-tech agricultural investment and cooperation plan between Japanese and Vietnamese leading corporations, specifically cow farming and beef processing. Speaking at the groundbreaking ceremony, Mr. Vu Chi Giang, Vice Chairman of Vinh Phuc Provincial People’s Committee, said that Vinabeef Tam Dao Complex is the largest hi-tech agricultural project by the investment fund in the province to date. Given its available potential, Vinh Phuc will support and facilitate investors to carry out their project smoothly and effectively. Vinabeef Tam Dao Complex not only marks the cooperation of leading Vietnamese and Japanese corporations but also represents the effort and resolve of businesses and Vinh Phuc province in fostering cooperation for mutual development between the two countries, especially in high-tech agriculture and food production and processing.

Realizing investment attraction goals

To draw domestic and foreign investment, especially projects from giant firms, Vinh Phuc province always strives to improve administration quality at all levels of government. Provincial leaders always actively support businesses and investors to conduct investment research as well as project implementation. To become a developed industrial province, as one of the industrial, service and tourism centers in the region and the country, Vinh Phuc hopes to have many multinational corporations and important strategic investors to study and invest in the following fields: computer, telephone and electronic industry; semiconductor industry; automobile industry, electric vehicle industry, pharmaceutical industry, high-tech agriculture, trade, service and tourism.

In particular, to support domestic and foreign investors, especially multinational corporations and strategic investors seeking to explore investment opportunities in the province, leaders of Vinh Phuc province will direct all levels and branches of government to carry out the six following contents:

First, Vinh Phuc province applies general investment incentive policies for businesses while also having its own investment support policies. The province is committed to developing policies that diversify investment fields and increase accessibility to investment support for enterprises and investors.

Second, the province supports businesses in accessing land quickly by preparing land funds and speeding up site clearance to provide space for investment projects.

Third, Vinh Phuc province supports companies in dealing with labor issues such as worker training and recruitment.

Fourth, the locality invests in infrastructure for industrial zones and tourist areas while supporting essential input conditions for production and business of enterprises.

Fifth, Vinh Phuc settles investment administrative procedures quickly in accordance with the law, while continuing to review and simplify administrative procedures.

Sixth, the province promptly removes difficulties against companies, focuses resources, applies epidemic prevention and control measures, and ensures a safe investment environment. With its better infrastructure system invested towards the international level, and open and transparent policies, Vinh Phuc is an ideal, safe, reliable and effective destination for investors including Japanese investors.

Nguyet Tham, Vietnam Business Forum