New wave of Japanese investment imminent in Đồng Nai

October 17, 2022 - 18:44
A new wave of Japanese investment is expected to flow into Đồng Nai Province. Đồng Nai newspaper asks Hiroyuki Ishil, general director of Long Đức Investment Company Limited (Sojitz Corporation), about it.
Hiroyuki Ishil, general director of Long Đức Investment Company Limited (Sojitz Corporation). – Photo

After 15 years of investment in Đồng Nai, what do you think about its investment climate?

Situated in the southern key economic region, Đồng Nai has emerged as a hub for FDI in many areas, including supporting industries and high-tech manufacturing.

It offers efficient logistics networks and connectivity with HCM City in addition to an array of investment incentives.

Đồng Nai has also emerged as a hub for FDI, including from Japan, due to its consistent economic growth, reliable infrastructure at industrial zones and others.

Industrial zones remain the backbone of Đồng Nai’s investment attractiveness.

A number of Japanese companies such as Sojitz, Mitsubishi, Forval, Shiseido, Canon, Ajinomoto, Toshiba, Lixil, Plus, and Kobelco have invested in the province.

Many foreign enterprises, including from Japan, continue to rent land to build factories to expand production in the province.

More than 50 Japanese firms have invested in the Long Đức Industrial Park (IP). How are they faring?

In 2007 Sojitz Corporation invested in building infrastructure at the Long Đức IP, spread over more than 280ha, in Đồng Nai.

So far the IP has attracted investments of more than US$2 billion from 66 domestic and foreign companies, including more than 50 from Japan.

Currently most Japanese enterprises in the IP have resumed production and expanded their capacity compared to before the pandemic.

Most Japanese companies and others have also increased investment by two to three times.

Demand for space in industrial zones has been rising over the past few years.

Some Japanese enterprises have also invested in building factories in other IPs in Đồng Nai to expand production and supply to the Southeast Asia.

Long Đức IP has run out of land to lease, and so many Japanese companies have to find land in other areas to open more factories.

Do you think Đồng Nai will remain an attractive destination for Japanese investment in future?

I think many Japanese companies still consider Việt Nam an attractive investment destination, especially in fields such as manufacturing, services, logistics, and technical infrastructure.

Over the past two years most countries in the world have been affected by challenges such as the pandemic and economic slowdown. While many countries have experienced negative growth, Việt Nam maintains a relatively high growth rate.

After COVID-19 was brought under control, Việt Nam has achieved robust economic recovery, which has attracted investors from Japan and other countries.

Đồng Nai is home to a large number of Japanese investors. In my opinion, there will be a new wave of Japanese investment in many fields in Đồng Nai in the near future.

What should Đồng Nai do to attract this new wave of Japanese investment?

I think Đồng Nai has great potential to attract investment not only from Japan but also other countries.

Its biggest problem is the lack of sufficient industrial land for investors to rent for building factories.

The province will need a land bank for industry, trade, services, logistics, and others to meet demand.

It should also streamline administration to reduce the time needed to process licences for investment. VNS