VN, a destination for Japanese investors

16:10 | 05/08/2014

VGP – Japanese businesses are heedful of the investment envient in Viet Nam, attracted by the wholesales, power and support industries.

VN, a destination for Japanese investors – Illustration photo

The statement has been made recently by representatives of Japanese business community when talking about investment in the country.

Speaking at the second high-ranking dialogue on public-private cooperation in Viet Nam held recently by the Ministry of Planning and Investment, CEO, Executive Managing Director of the Japan Bank for International Cooperation (JBIC) Hiroshi Wantanabe affirmed that Japanese businesses paid great attention to power projects in Viet Nam.

Japanese companies are negotiating to sign contracts on  three Build-Operate-Transfer (BOT) power projects, including Nghi Son II in Thanh Hoa province, Vung Ang II in Ha Tinh province and Van Phong I in Khanh Hoa province.

The Vietnamese Government’s announcement on general power planning to 2020 with a vision to 2030 created favorable conditions for Japanese investors to envisage a direction of the country’s power development in the future, Wantanabe added.

During a press conference prior to the 2014 Forum on Vietnamese Business Merger and Acquisition(M&A) in July, Japanese RECOF Corporation CEO Masakata Sam Yoshida also said that Japanese investors have paid special attention to the investment environment in Viet Nam for the past three years.

According to the Department of Foreign Investment under the Ministry of Planning and Investment, total investment pouring into the country in 2012 and 2013 was US$5.59 billion and US$5.875 billion respectively.

Though Japanese businesses’ foreign direct investment (FDI) in the country for the first half of this year decreased, Japan still ranked third among 41 countries and territories investing in Viet Nam.

Not only being attractive to FDI, Viet Nam is also considered by Japanese investors as the second most attractive M&A market in Southeast Asia thanks to the country’s policy on enhancing equitization in state-own enterprises.

Yoshihisa Maruta, Chairman of the Japan Business Association in Viet Nam said that Viet Nam is valued by Japanese investors thanks to large population, young and hard-working labor force, favorable geographical location and gradual institutional improvements.

                                                                                                                        By Ngoc Van