Bac Ninh Enhancing Japanese Investment Influx

10:23:02 AM | 29/11/2023

Japan has emerged as a prominent partner for Bac Ninh province, fostering collaboration in various domains such as foreign direct investment (FDI), aid, and cultural exchange. The robust development of Japanese companies within Bac Ninh has significantly contributed to the local socio-economic progress and overall development.

People's Committee of Bac Ninh signs MOU with Nihon Toyo Group (Japan) at the Meet Bac Ninh - Japan program

Recognizing the pivotal role of investment attraction, particularly foreign funds, in fostering sustainable socio-economic development, Bac Ninh has prioritized the implementation of comprehensive and effective investment solutions. This focus extends particularly to Japanese partners renowned for their expertise and technological capabilities.

Currently, amid the more than 2,040 projects from 39 countries and territories invested in Bac Ninh, Japan stands out with 101 valid projects amounting to a registered investment capital of US$1.68 billion, representing nearly 7% of the province's total FDI investment capital. This positions Japan as the third-largest investor in Bac Ninh, following South Korea and Singapore. Japanese companies primarily invest in high-tech manufacturing sectors such as electronic components and mechanical engineering.

For instance, Canon Vietnam Co., Ltd., with an investment of US$130 million, employs nearly 10,000 workers and operates facilities in Que Vo Industrial Park for manufacturing laser printers and Tien Son Industrial Park for inkjet and laser printers. Another notable investor is Foster Electric Bac Ninh Co., Ltd, which invested US$55 million, began operations in 2010, and manufactures phone headsets and car speakers, employing over 3,000 workers. Other noteworthy Japanese investors include Seiki (US$126 million), Hanacans (US$114.4 million), Nippon Zoki (US$90 million), Nitto (US$66 million), Toyo Ink (US$55 million), Sumitomo (US$53 million), Fujikin (US$52.45 million), Tenma (US$51.56 million), THK (US$50 million), and Tabuchi Electric.

In the environmental sector, JFE Engineering Corporation invested over US$58 million to establish a high-tech energy-generating solid waste treatment plant in Ngu Thai commune (Thuan Thanh town). With a favorable location, an attractive investment environment, and the support of Bac Ninh province, Japanese companies consider Bac Ninh a priority "production base" in Vietnam.

Subsequently, Japanese investors demonstrate swift and successful development immediately after obtaining licenses. Renowned for their discipline, integrity, and efficient investment practices, Japanese companies in Bac Ninh's industrial parks, during the first six months of 2023 alone, generated over VND32.8 trillion of industrial production value and employed more than 23,200 local workers. These firms have significantly contributed to the socio-economic development of Bac Ninh and fostered enhanced collaboration with Japan across diverse domains.

Looking ahead, Bac Ninh aims to further attract direct investment from Japan, with a focus on labor-intensive, capital-intensive high-tech manufacturing projects aligned with the knowledge economy and sustainable development. The province is keen on promoting collaboration between FDI firms and domestic companies to increase the localization rate, enabling local industries to integrate into the global value chain.

Secretary of the Bac Ninh Provincial Party Committee, Nguyen Anh Tuan, affirmed Japan's strength in high-tech fields, particularly in ICT, digital technology, nanotechnology, biotechnology, and new materials, which are integral to Bac Ninh's aspirations to be an industrial and high-tech hub.

Source: Vietnam Business Forum