Attracting investment from Japan: Prospects for reliable and practical cooperation

(Baonghean) - Japan is currently one of the countries with the world's leading developed economies with the most advanced technology and engineering. Japan is also the most effective investor in Vietnam, and has allocated the largest ODA source to Vietnam to date. In Nghe An, in the investment attraction strategy, Japan is the top priority partner with 4 investment projects with a total capital of 1.1 billion USD; especially upcoming projects in the field of high-tech agriculture...

Export production at MLB TENERGY Co., Ltd. (Japan) in Yen Thanh.

The priority sectors for development in the industrialization strategy play a leading role in promoting investment attraction from domestic and foreign enterprises, first of all Japanese enterprises, creating technology spillover and skill spillover for the industrial sector in particular and the Vietnamese economy in general. The above Decision No. 1043/QD.TTg is one of the "levers" to enhance cooperation between the two countries Vietnam and Japan. Accordingly, relevant Japanese agencies commit to actively participate and provide financial support to conduct necessary investigations, surveys and consultations to serve the implementation of the industrialization strategy; actively promote investment, find potential investors in Vietnam; select information and share with ministries, branches and relevant parties to serve the implementation of the industrialization strategy.

According to the Foreign Investment Agency (Ministry of Planning and Investment), as of March 2014, Japanese investors had 2,237 valid projects with a total registered investment capital of 35.38 billion USD, making them the largest investors among 101 countries and territories investing in Vietnam. In the FDI attraction strategy, Japanese enterprises are considered by Nghe An province as the most important investment attraction partners. Up to now, Japan has had 4 investment projects of 1.1 billion USD in Nghe An province, including: Yabashi white limestone mining in Quy Hop district, garment export in Yen Thanh district, infrastructure business of Hoang Mai I industrial park, and the largest FDI project of Japan investing in Nghe An is the sponge iron production plant of Kobelco Steel Company with a total investment capital of 1 billion USD, capacity of 2 million tons/year.

Nghe An is determined to industrialize, becoming a fairly developed province in the North, and attracting investment is a strategic solution. Regarding the specific orientation of the province, priority is given to attracting Japanese investment in high-tech industries including: Supporting industry (manufacturing of accessories, components, components, parts, spare parts, machinery and equipment details... supplying the mechanical assembly industry, electricity - electronics, information technology, automobiles, petrochemical industry, thermal power); mechanical engineering, production of high-grade cement and brick construction materials; production of new materials. In agriculture, there are projects on planting, raising animals, applying high technology, processing safe food (products from peanuts, fruits, rubber; frozen livestock and poultry meat, seafood for export...).

Recently, Nghe An provincial leaders have promoted investment in Japan and achieved many results, especially gaining support from the Embassy and the Japan International Cooperation Agency (JICA). In mid-August 2014, a delegation from Nghe An Provincial People's Committee had a working trip to Japan with the Ministry of Planning and Investment to attend the Investment Promotion Program in the supporting industry and high-quality agriculture. The delegation attended a working session with 5 Japanese provinces (Hyogo, Miyazaki, Iwate, Yamagata and Chiba), organized by SMBC Bank. These are 5 localities with many strengths in developing high-quality agriculture. The delegation introduced the potential, strengths and investment attraction orientation for Japanese enterprises in the high-quality agricultural sector of Nghe An province, and requested Japanese enterprises to research and seek partners in Nghe An province to invest in the fields that Nghe An is attracting such as: Agricultural product processing, meat processing and agricultural machinery manufacturing...

During the visit, the delegation also attended a conference with businesses of the Japan Chamber of Commerce and Industry (JCCI), attended the Investment Promotion Conference in the supporting industry (August 21, 2014) with the participation of more than 200 Japanese businesses. At the investment matching session (Business Matching), many Japanese businesses were interested in the fields of clean vegetable production, high-quality flowers; production and processing of ginger products and products from bamboo, rattan, and reeds of Nghe An. Especially, ginger products of Nghe An Agricultural Materials Joint Stock Corporation received great attention from Japanese businesses. Immediately after that, on August 25, 2014, NT Vegetable Company - Japan directly came to Vietnam and Nghe An to survey ginger products in production areas in Tuong Duong and Ky Son districts. Then in October, Nghe An Agricultural Materials Corporation went to Japan to promote investment in a project to apply Japanese technology to ginger processing in Nghe An.

The above-mentioned visit and investment promotion in Japan by the delegation of the Provincial People's Committee is a continuation of the previous investment promotion activities of Nghe An towards Japanese partners, contributing to concretizing the policy of the senior leaders of Vietnam and Japan to take 2013 as the "Vietnam - Japan Friendship Year", celebrating the 40th anniversary of the establishment of diplomatic relations between the two countries. Previously, the People's Committee of Nghe An province organized a seminar on Japanese ODA in Nghe An, organized a working delegation led by Mr. Nguyen Xuan Duong - Chairman of the Provincial People's Committee to work in Japan in October 2013. In Vinh City, in October 2014, the city's leaders also promoted investment in Japan and initially achieved some results, especially when the city. Vinh - Nghe An has established a sister city relationship with Kasumigaura City (Ibaraki Prefecture, Japan), thereby promoting a number of projects related to agriculture and electrolyzed water.

Comrade Dinh Viet Hong - Vice Chairman of Nghe An Provincial People's Committee said: "The trip of the Provincial People's Committee delegation directly promoted and promoted investment for Japanese enterprises in the agricultural sector. This is a field that Japan has strength in and is also a potential field of Nghe An. In the coming time, the province will continue to promote calling for Japanese enterprises to invest in the area; especially focusing on specialized fields that Nghe An has advantages in such as high-quality agriculture. Currently, the Ministry of Planning and Investment is coordinating with the Ministry of Agriculture and Rural Development and the system of major Japanese banks to develop a strategy to promote activities to encourage overseas investment for Japanese enterprises, which is considered a new direction in investment promotion activities, when there is participation in capital support from the banking system. Nghe An province will proactively work with relevant agencies to seek support and put Nghe An into one of the localities to pilot investment promotion programs. the above mentioned

As of 2014, Japan's ODA for Nghe An reached 6,117 billion VND (total ODA capital in the area is over 15,020 billion VND), including the project to upgrade the Northern Nghe An Irrigation System of 5,700 billion VND. This project aims to restore and upgrade the Northern Nghe An Irrigation System with a total investment of nearly 274 million USD, of which the Japan International Cooperation Agency finances 84.27%; implementation period is from 2013 to 2019. The project's goal is to restore and upgrade the entire system, ensuring irrigation water for agricultural production for more than 27,000 hectares and providing domestic water for the region. This is a key ODA project of Nghe An and is a special project with the largest irrigation scale ever in the area. Nghe An also committed to making the utmost effort to coordinate with the Ministry of Agriculture and Rural Development and the Japan International Cooperation Agency (JICA) to implement the project in the best way, ensuring the progress and plan. One of Nghe An's initial successes in promoting investment with Japan can be said to be the role of JICA for Vietnam in general and Nghe An in particular; this agency is both a bridge and on behalf of Japanese investors, providing Nghe An with many technical cooperations, sharing experiences and capital.

To facilitate Japanese investors to learn about the investment environment in Nghe An, on June 27, 2013, the People's Committee of Nghe An province launched a website in 4 languages: Vietnamese, English, Japanese and Korean on investment promotion on the Nghe An province electronic information portal. Nghe An province has also cooperated with Japanese consultants in planning and designing projects such as: Nekken Sekkei Civil Engineering Ltd. established the master plan to adjust Vinh City to 2020, with a vision to 2030; Japan Port Corporation designed Cua Lo deep-water port...

Chau Lan