Japanese investors stepping up presence in Vietnam
Japanese investors stepping up presence in Vietnam
Japanese small and-medium investors are increasing their investment in processing, manufacturing and retail in Vietnam, according to the first quarter report by the Ministry of Planning and Investment (MPI).
Specifically, in the first quarter of 2015, Japanese enterprises invested in 81 projects in Vietnam with the total investment capital of $294.36 million, including $136.98 million to finance new projects and $157.38 million in added capital.
The processing and manufacturing industry ranks first in attracting Japanese investments to Vietnam, boasting the total capital value of $175.76 million and covering 32 projects. The runners-up are real estate, with four projects worth $66.73 million, and retail with 12 projects worth $42.3 million.
In processing and manufacturing, there are three outstanding projects of special significance on account of their investment value and scale of operations.
The first is Kyocera Vietnam Co., Ltd.’s $59.58 million project to produce telecommunication units and mobile phones in the northern province of Hung Yen.
The second project is co-financed by Shibutani Co., Ltd and Shibutani Industry Co., Ltd and aims to construct Vietnam- Shibutani Co., Ltd which specialises in producing components and electronic products. It is located in Dong Nai province with the total capital of $10.8 million.
The third is Mandom Corporation’s investment in export-import and wholesale-retail. The project aims to stimulate Vietnamese foreign trade via founding Vietnam-Mandom Co., Ltd with the total capital of $10 million.
In February, Japan’s largest retailer Aeon, in addition to building its own stores in Hanoi, Ho Chi Minh City and Binh Duong, has recently expanded its presence in the Vietnamese market through the acquisition of two local retailers namely Fivimart, the biggest supermarket chain in Hanoi with 20 stores, and Citimart, the biggest supermarket operator in south with 27 stores. These retail companies hold significant market share by their own rights, handing over lucrative opportunities to Aeon.
At present, about 1,500 Japanese small and medium enterprises are present in Vietnam.
