Mitsubishi Corporation's leaders share "7 keywords" in the development process

Wishing to contribute to Vietnam's deep integration

Opening his speech, Mr. Tetsu Funayama - Chairman and General Director of Mitsubishi Corporation Vietnam said: "Mitsubishi Corporation is a business operating in two fields: trade and investment. Although we are a Japanese company, our operations have spread to more than 90 countries. In Vietnam, Mitsubishi Corporation has a history of more than 100 years of operation. Over the years, Vietnam has achieved many achievements in economic development through actively participating in signing many Free Trade Agreements (FTAs), most recently the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Vietnam is given special attention by Mitsubishi Corporation according to the company's development orientation. As a global business enterprise, Mitsubishi Corporation wishes to contribute to Vietnam's deep integration with the world's economies.

Mr. Tetsu Funayama - Chairman and General Director of Mitsubishi Corporation Vietnam. Photo: Thanh Cuong

Mitsubishi Corporation Vietnam's strengths lie in four main pillars: infrastructure, retail, healthcare and information technology. The company has been fortunate to receive support from the Vietnamese Government as well as agencies and departments with the orientation of focusing on supporting the development of a number of industries in the Vietnamese market such as processing industry, food and pharmaceutical processing, high-tech agriculture, etc.

“I myself had the opportunity to be associated with Vietnam nearly 30 years ago. At that time, Vietnam's economy only focused on developing in big cities such as Hanoi and Ho Chi Minh City. However, in recent years, I have realized that not only big cities, but all localities in Vietnam have their own potential to develop strongly. However, the problem is how to make the most of these inherent strengths and potentials to contribute to the economic development of the locality. On this issue, I would like to share my opinion on the "7 keywords" that can be referred to in the development process of provinces and cities in Vietnam.

These are: Tourism, Master planning, Agricultural processing industry, Seafood processing industry, Renewable energy, IT and biotechnology, Industry - Chairman and General Director of Mitsubishi Corporation Vietnam emphasized.

Industrialization should not be widespread.

At the conference, leaders of Mitsubishi Corporation Vietnam specified 7 issues.

First is “Tourism”. This is a method applied by many provinces and cities to attract foreign currency, contributing to the growth of local GDP. Some localities have built tourist destinations with a certain position that other provinces and cities can hardly compete with. Therefore, each province and city often takes advantage of its other attractive advantages to attract tourists.

The Group surveyed Hoang Mai Industrial Park to select a location to invest in an automobile manufacturing plant in the province in early 2018. Photo: Xuan Hoang

The second is “Master plan”. If a province or city has a good master plan, it will have a great advantage in attracting foreign investment. To achieve this, provinces and cities need to work with outside consulting firms to develop a master plan and carry out development according to the proposed strategy.

The third is “Agricultural processing industry”. Economically developed provinces need to focus on exporting processed products instead of raw products to increase added value, as well as take advantage of Vietnam's geographical position as a trade gateway for economies in the region. On the other hand, infrastructure development, focusing on the seaport system, is also an important point that greatly affects export expansion.

The fourth is “Seafood processing industry”. Vietnam needs to expand the export of processed seafood products. Especially for provinces and cities with developed economies and provinces near large cities, focusing on improving the cold supply chain is also very important.

Thursday is “Renewable Energy”. In recent years, renewable energy has received a lot of attention. Many provinces with low economic development levels have chosen to develop power plant projects, attracting investment in wind power projects in coastal areas or solar power.

Friday is “IT and Biotechnology”. Provinces with high GDP per capita and foreign exchange earnings have sufficient resources to develop high value-added industries.

Members of the delegation visited the model of VSIP Industrial Park. Photo: Xuan Hoang

Finally, “Industrial”. Based on geographical, environmental and social characteristics, each locality needs to choose to develop specific industries. For provinces and cities near the border, it is necessary to develop a supply chain including importing raw materials - processing - exporting finished products. On the other hand, focusing on light industries such as fiber, leather and footwear industries or attracting heavy industries such as electricity and electronics should only be limited to large industrial parks near urban areas where demand is high. Encouraging excessive industrialization will not bring much efficiency in the future.

“From the above shared opinions, in the coming time, we really hope to learn more about the current situation as well as the development potential of Nghe An province. For example, which industries does Nghe An province prioritize for development? That is also the reason why today, the People's Committee of Nghe An province and Mitsubishi Corporation Vietnam will sign a memorandum of understanding (MOU) on comprehensive strategic cooperation. During the research and study process, I also really hope to receive support from Japanese government agencies such as the Japan International Cooperation Agency (JICA)" - Mr. Tetsu Funayama - Director of Mitsubishi Corporation Vietnam shared.