(MPI Portal) - With a total newly and additional registered investment capital of US$ 4.677 million (with 203 newly-registered projects and 82 projects with additional capital), Japan is No. 1 on the list of foreign investors in Vietnam, accounting for 49% of the registered capital in 9 months of 2012. Until now, Japan has invested in 1,758 projects with a total registered capital of US$28.6 billion (capturing 13.7% of the registered capital), ranked first in 96 countries and territories investing in Vietnam.
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Production of electrical conductor for cars in Sumi-Hanel Venture. Photo: Internet |
From the beginning of 2012, the projects of Japan was launched as Project Tokyu Binh Duong Urban Area, Bridgestone tire Co.,Ltd in Hai Phong, Oshima Shipbuilding Khanh Hoa, Shimizu Corp cooperating with N&G to develop supporting industrial zone, Sumitomo opening workshop at the Thang Long industrial park to assist small and medium enterprises in Japan, etc. Some industrial companies also announced the opening of the plants in 2012 as door-frame factory of JS Group, lens production of Tamron, lubricant production of Nippon Oil, manufacturing of iron and steel structure and bridges of MES,rare earth recycle and production of silicon materials from Shin-Etsu. Aeon Corporation (Asia's largest retail corporation) was granted the investment license from July, 2011 with a total investment capital of US$109 million. The goal of building the first shopping center in Ho Chi Minh City which expected to operate officially in 2014 was quickly implemented. Mr. Nishitohge Yasuo, CEO of Aeon Vietnam said: "Having recognized the potential for economic development as well as the consumption growth of the Vietnamese market, we do not hesitate to make a investment decision."
Not only ranking first in direct investment in Vietnam, Japanese firms have actively promoted expansion of business, merger and acquisition (M&A) to expand the domestic market as Kirin Brewery, Asahi Breweries bought shares of SABECO, Nichirei Corporation purchased shares of Cholimex, Ezaki Glico corporation bought shares of the Kinh Do Group, etc.
It is clear that since the beginning of 2012, the investment promotion activities between Vietnam and Japan have taken place continuously and vibrantly with the focus of the signing of the MoU on investment promotion between Ministry of Planning and Investment of Vietnam with Japanese Chamber of Commerce and Industry (JCCI) on Sep 25th, 2012 in Hanoi which showed potential of increase in Japanese investment into Vietnam. Beside the investment promotion activities at the national level, the localities actively launched the Janpanese investment promotion programs as Hai Duong (April, 2012), Quang Nam (May, 2012), Vinh Long, Ba Ria - Vung Tau, Binh Dinh (Sep, 2012). In addition, a lot of investment promotion activities of JCCI, JETRO, Japan's localities and large corporations of Japan was held in Vietnam from early 2012 till now.
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Chairman of JCCI Tadashi Okamura: “In the context of strongly industrialized development of Vietnam, Janpan with advanced technology will contribute considerably to Vietnamese economy. This MoU is considered the strong commitment about investment cooperation from both sides”.
Photo: Duc Trung (MPI Portal) |
Recently, the JCCI and VCCI organized a dialogue between the two countries’ enterprises. Speaking at the dialogue, Mr. Toshio Nakamura, Managing Director of JCCI accessed that, the Japanese small and medium-sized enterprises used to invest outside the country in the same time with large enterprises to establish a chain of supporting satellite companies. However, this trend has changed recently, the Japanese small and medium enterprises have been actively looking for partners and investment opportunities, and Vietnam is a fascinating place. Mr. Toshio Nakamura also emphasized that due to earthquake tsunami last year, a series of factories in Japan were severely damaged, production demand was not ensured. Therefore, in order to maintain the supply chain, the Japanese enterprises must seek, build factories in other countries, including Vietnam.
According to the Japanese evaluation, comparing with seeking round for opportunities in 2008, so far, the investment environment in Vietnam has not had many differences. However, the attractiveness of the Vietnamese market with the Japanese firms has not been changed. The interest, enthusiasm of Japanese enterprises in seeking opportunities this time is much higher. The abundant labor force, potential market make Vietnam become attractive to investors.
The special interest of Japanese enterprises to Vietnam has had a long history rather than the tend to withdraw from the Chinese market due to the tension between Japan and China recently. As the speech of Mr. Tadasi Okamura, JCCI Chairman: "For Japanese investors, Vietnam is considered the gold address of investment attractiveness". /.
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Foreign investment situation in the first 9 months of 2012
According to the report of the Foreign Investment Agency, Ministry of Planning and Investment, foreign direct investment in the first 9 months of 2012 has continued to have positive changes, although the socio-economic situation in the country has had many difficulties and challenges but realized investment capital of 9 months still reached US$ 8.1 billion (equaling 98.8% over the same period last year). In which, although the newly-registered capital was only 61% over the same period, the additional registered capital increased by 7.2% over the same period. Another good sign is the export of foreign investment enterprises (excluding crude oil) increased by 37.9% over the same period, (including crude oil) increased by 34.6% compared to the same period last year .
By sectors: The processing, manufacturing sector continued to have the lead with 65% of the registered capital, the real estate sector ranked second accounting for 19% of the registered capital. The third is wholesale, retail and repair. Particularly, telecommunications attracted over US$400 million of registered capital, ranked fourth, accounted for 4.2%.
By investment forms: investment in the form of 100% foreign capital still dominated with 646 new projects, 282 projects with additional capital, the total registered investment capital reached US$ 7.31 billion, accounting for 76.8%; Joint venture with 124 new projects, 28 projects with additional capital, the total registered investment capital reached USS$ 2.08 billion, capturing 21.8%. There were 5 new projects in the form of stock company. Others investment forms as BOT, BT have no licensed projects.
By partners: There were 52 countries and territories investing in the first 9 months of 2012, led by Japan with 203 new projects, 82 projects with additional capital, the total registered investment capital obtained US$4,677 million, accounting for 49%; the second were Samoa with 04 new projects, 02 projects with additional capital, the total registered investment capital of US$ 889 million, making for 9.33%; the third were South Korea with 159 new projects, 57 projects with additional capital, the total registered investment capital of US$ 711 million; followed by the British Virgin Islands with 14 new projects, 14 projects with additional capital, the total capital reached US$611 million; Singapore ranked fifth with 67 new projects, 33 projects with additional capital, the total registered investment capital of US$ 588 million.
By areas: The areas with favorable conditions located in the key economic Southern and Northen region have the lead in attracting investment, Binh Duong ranked first (US$2,164 million of registered capital), Hai Phong ranked second (US$1,077 million of registered capital), the third were Dong Nai (US$991 million of registered capital), the fourth were Ho Chi Minh City (US$996 million of registered capital) and followed by Hanoi (US$954 million of registered capital).
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