Japanese investments to increase in Đà Nẵng and central Việt Nam

March 06, 2024 - 10:09
On the occasion of the 64th birthday of Japanese emperor Naruhito on February 23, the Japanese consul-general in Đà Nẵng City, Yoshinori Yakabe, was delighted to host the visiting royal. Yakabe speaks with Việt Nam News about the visit, diplomatic relations between the two countries and the central region.

 

The Japanese consul-general in Đà Nẵng, Yoshinori Yakabe (second right), at an event in Đà Nẵng City. He expects investments and cultural exchanges between Japan and central Việt Nam to increase sharply in future. VNS Photo Công Thành 

On the occasion of the 64th birthday of Japanese emperor Naruhito on February 23, the Japanese consul-general in Đà Nẵng City, Yoshinori Yakabe, was delighted to host the visiting royal. Yakabe speaks with Việt Nam News about the visit, diplomatic relations between the two countries and the central region.

Japanese Imperial Highnesses Crown Prince Akishino and Crown Princess Kiko visit Mỹ Sơn Sanctuary - a UNESCO-recognised world heritage site -- in Quảng Nam Province. Photo courtesy of Quảng Nam People's Committee 

Message from Yoshinori Yakabe:

Various commemorative events and exchange programmes were organised in both Japan and Việt Nam in 2023 for the 50th anniversary of the establishment of diplomatic relations between the two countries.

The official visit to Japan by President Võ Văn Thưởng was of great significance to both countries during the 50th anniversary of diplomatic relations. At the summit meeting, Japanese Prime Minister Kishida and President Thưởng announced the elevation of the Japan-Việt Nam relationship to a ‘Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World,’ thereby affirming both countries’ endeavour to take the cooperation between the two countries in all areas to new heights and to further expand it to new fronts.

The two leaders expressed satisfaction that their countries have become important economic partners over 50 years, highlighting Japan as Việt Nam’s largest provider of official development assistance (ODA), the second largest partner in labour cooperation, the third in investment and tourism, and the fourth in trade.

People-to-people exchanges have also deepened between the two countries. The Vietnamese community in Japan has been growing rapidly to become the second largest foreign community, totalling 520,000 expats. The number of Japanese nationals in Việt Nam has also increased by leaps and bounds to 22,000. The Vietnamese community in Japan and the Japanese community in Việt Nam have been making great contributions to the socio-economic development of both sides and are important catalysts for the sustainable growth of the Japan-Việt Nam.

In terms of cultural exchanges, the ‘Japan-Việt Nam Festival in Đà Nẵng City’, ‘Hội An-Japan Festival’ in Quảng Nam Province and ‘Japan-Việt Nam Cultural Day’ in Thừa Thiên Huế Province were held.

Regarding visits by dignitaries, Their Imperial Highnesses Crown and Crown Princess Akishino made an official visit to Đà Nẵng City and Quảng Nam Province in September.

Besides, the governors of Wakayama, Nagasaki, Kanagawa, Kyoto, and Yamanashi Prefectures visited Đà Nẵng City and the provinces of Quảng Nam, Thừa Thiên Huế and Quảng Bình.

I am convinced that mutual understanding and friendly cooperative relations between Japan and central Việt Nam have been steadily developed through these exchanges.

Việt Nam continually attracts attention from Japanese companies as a promising destination for investment. The central region of Việt Nam is being watched with interest as an investment destination by Japanese companies given its lower rents at industrial parks and plentiful human resources. Currently there are around 300 Japanese companies operating in Đà Nẵng and its surrounding provinces, but the number of Japanese companies entering will increase steadily.

Central Việt Nam is also rich in tourism resources such as beautiful seas and mountains and World Heritage sites with historical and cultural values including Hội An, which was closely related to Japan. Therefore, the number of Japanese tourists is expected to increase steadily as direct flights between Đà Nẵng and Japan increases in future. The number of students and young people is expected to increase in particular since central Việt Nam is an excellent destination for study tours.

The Japanese Bridge in Hội An is a typical symbol of the long cultural exchanges between Japan and Việt Nam. Japan has been supporting the restoration and conservation of the bridge and old houses in Hội An for years. VNS Photo Công Thành 

How have co-operation between and investment from Japan to Đà Nẵng and the central region shaping up in recent years in terms of money, jobs and technology transfer?

In the first stage the Government of Japan has provided a large amount of ODA for infrastructure in Đà Nẵng City and central provinces, including the Đà Nẵng Port upgrade, Hải Vân Tunnel construction, the North-South Expressway construction(Đà Nẵng-Quảng Ngãi Section), and others.

In the second stage, based on the improved infrastructure, Japanese companies have increased investment in Đà Nẵng City and neighboring provinces. There are nearly 300 Japanese companies operating in this area today.

And at this present stage many Japanese companies support universities in Đà Nẵng with funds, jobs and technology transfer for the human resource development.

Vietnamese and Japanese communities plant trees to mark the 50th anniversary of diplomatic ties between Việt Nam and Japan in Da Nang in 2023. Many cultural and economic activities have been undertaken by the two countries. VNS Photo Công Thành 

What do you think about the contribution made by Japanese businesses and people in Đà Nẵng and its neighboring provinces and cities?

The Japanese Chamber of Commerce and Industry in Đà Nẵng (JCCID) has been playing an active role in Đà Nẵng and its neighboring provinces to improve the business environment, coordinate with relevant authorities and resolve problems Japanese companies face. The JCCID has regular annual meetings with the people's committees of Đà Nẵng and neighbouring provinces.

A Japanese expert at a practical training session for nursing students at Đà Nẵng City's Đông Á University. More than 300 students from central Việt Nam study or work in Japan. Photo courtesy of Phương Chi 

How do you see the future of the ties between Japan and the central region?

Last year marked the 50th anniversary of diplomatic relations between Japan and Việt Nam. The two countries announced the elevation of their ties to a ‘Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World'.

Based on such good bilateral relations, Japanese investors have strong interest in Việt Nam. But Japanese companies face difficulties when investing in Việt Nam. One of the major problems is lack of the high-quality human resources.

With regard to high-quality human resources, I believe Đà Nẵng has a great potential. There are 17 universities in Đà Nẵng City including Đà Nẵng University. And moreover, there are nine universities in Huế City, which is only 100km from Đà Nẵng. That is the reason why Đà Nẵng has great potential for developing high-quality human resources. I think it is one of the greatest strengths for Japanese companies investing in Đà Nẵng, especially in technology and IT. I am convinced that Japanese investments will increase steadily in Đà Nẵng in the foreseeable future.

In the past Đà Nẵng earmarked a location for building a nursing centre for elderly people from Japan, but the project has not taken off. What do you think about prospects for co-operation and investment in healthcare and nursing for old people from Japan in Đà Nẵng and the central region in the future?

Before the COVID 19 outbreak, some Japanese investors had plans to build nursing centres for elderly Japanese. But these projects have been suspended since the pandemic and the subsequent rapid fall in the exchange rate of Japanese yen.

Đà Nẵng is a very nice place for healthcare and nursing for elderly persons as it has a mild climate, beautiful environment and kind people. Therefore, I believe that Japanese companies will resume the projects after the yen exchange rate gets better.

A battery-powered truck collects garbage in Huế City. The central city has received Japanese assistance for environmental protection and heritage restoration. Photo courtesy of UNDP 

What do you suggest for fostering Japan’s ties with Đà Nẵng and central provinces and cities?

Đà Nẵng as well as Huế have great potential for developing high-quality human resources. I am convinced that it will be one of the key factors in promoting close ties between Japan and central Việt Nam.

Recently some Japanese companies have started to support a university in Đà Nẵng with large amounts of money and technical co-operation to train students in the cybersecurity department since they need highly capable human resources in this area.

In the past Japanese companies invested in Đà Nẵng seeking cheap manual labour. But in the near future they will seek high-quality human resources even if it means paying international salaries, especially in the field of technology including semiconductors and the IT industry including AI, DX and cybersecurity.

As Japanese companies suffer from a shortage of human resources, Japan will try to establish more close relations with Đà Nẵng, if it can succeed in developing high-quality human resources. VNS

 

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