JAPANESE INVESTMENT IN VIETNAM
As of April 20, 2021, Japan has 4,690 active investment projects in Viet Nam with a total registered capital of 62.9 billion USD. Japan currently ranks 2nd after the Republic of Korea (71.6 billion USD) out of 140 countries and territories investing in Viet Nam.
In the first 4 months of 2021, Japan ranked 2nd out of 67 countries and territories investing in Viet Nam, with a total investment of over 2.5 billion USD, only behind Singapore (4.8 billion USD), followed by the Republic of Korea, China, Hong Kong, the United States, to name a few.
By sectors:
Japanese investment is recorded in 19 sectors in Viet Nam, notably in the processing and manufacturing industry (40.6 billion USD, accounting for 64 percent of the total registered capital); production and distribution of electricity, gas, water, air conditioners (7.4 billion USD, accounting for 11.8 percent); and real estate (7 billion USD, accounting for 11.2 percent).
By localities:
Japan has investment projects in 57 out of 63 provinces in Viet Nam. Thanh Hoa is the province with the largest volume of Japanese investment, with a total capital of over 12.5 billion USD. Hanoi ranks second with a total investment of 10.6 billion USD, followed by Binh Duong (5.8 billion USD), Ho Chi Minh City (5.1 billion USD), Dong Nai (4.1 billion USD).
Some major Japanese projects in Viet Nam :
- Nghi Son Refinery and Petrochemical Project with a total registered capital of 9 billion USD (Japanese capital accounts for 39.8%, Kuwait 35.1%, Viet Nam 25.1%);
- Smart city project in Dong Anh district, Hanoi with a total registered capital of 4.1 billion USD;
- Nghi Son 2 BOT Thermal Power Plant Project in Thanh Hoa Province (USD2.8 billion);
- Van Phong 1 BOT thermal power plant project in Khanh Hoa province (2.6 billion USD);
- Block B - O Mon gas pipeline project in Kien Giang province (1.3 billion USD);
- Tokyu Binh Duong urban area project in Binh Duong province (1.2 billion USD);
Investment of the Kansai region in Viet Nam:
Investment of the Kansai region in Viet Nam accounts for about 30% of Japan’s total investment in Viet Nam. Up to now, there are 784 investment projects of the Kansai region (Osaka, Kyoto, Nara, Hyogo, Wakayama, Shiga) and some other prefectures (Fukui, Toyama, Ishikawa) in Viet Nam with a total investment of more than 9 billion USD. (There are currently 4,624 Japanese projects in Viet Nam with a total capital of more than 62 billion USD).
By sectors: In addition to traditional areas such as manufacturing industry, production of industrial components and accessories, agriculture and seafood processing, other areas such as services, retail, finance, and indirect investment have witnessed an increase in investment.
By localities: projects are mainly concentrated in big cities such as Ho Chi Minh City, Hanoi, Da Nang, Hue and some provinces adjacent to major cities such as Binh Duong, Long An, Can Tho, Dong Nai, Vinh Phuc, Hai Duong, Hung Yen Ha Nam...
A number of special policies and mechanisms to facilitate Japanese enterprises’ investment and business in Viet Nam
1. The “Viet Nam's industrialization strategy within the Viet Nam - Japan cooperation framework to 2020, vision to 2030” focuses on 6 industries: (1) Electronics; (2) Agricultural machinery; (3) Agricultural and aquatic processed products; (4) Shipbuilding; (5) Environment and energy saving; (6) Automobiles and auto parts manufacturing.
2. The Viet Nam - Japan Joint Initiative (VJJI) is a special dialogue mechanism between the Vietnamese governmental agencies and the Japanese business community to address remaining bottlenecks, incorporate Japan’s recommendations and proposals into the amendments and final drafts of Viet Nam's legal policies on business and investment. The meeting is co-chaired by the Minister of Planning and Investment, the Ambassador of Japan to Viet Nam and the two Chairs of the Viet Nam Central Economic Commission and the Japan Economic Federation. The meeting is also attended by representatives of Ministries and agencies such as: Ministry of Industry and Trade, Ministry of Finance, Ministry of Foreign Affairs, Ministry of Labor, Invalids and Social Affairs, Ministry of Science and Technology, Ministry of Natural Resources and Environment and the State Bank of Viet Nam.
The Viet Nam - Japan Joint Initiative has been implemented since April 2003 and has completed 07 phases over a span of 17 years. The Viet Nam - Japan Joint Initiative has proven to be a special and effective cooperation mechanism between Viet Nam and Japan, yielding many benefits for Japanese enterprises investing and doing business in Viet Nam. This will also actively support Viet Nam in improving the business and investment environment and attracting foreign investment. Building on the results achieved through 7 phases, the two sides will continue to implement phase 8 of the Viet Nam - Japan Joint Initiative.
Viet Nam - Japan Joint Initiative phases VII
VIETNAMESE INVESTMENT IN JAPAN
As of April 20, 2021, Viet Nam has 90 active investment projects in Japan with the total registered capital of 22.6 million USD, accounting for 0.1 percent of the total registered capital of Viet Nam’s overseas investment. Japan is currently ranked 34th out of 78 countries and territories in terms of Viet Nam’s overseas investment.
Viet Nam has invested in 10 industries in Japan, focusing on information technology (7.6 million USD), academic expertise, science and technology (5.27 million USD); wholesale and retail, automobile and motorbike repair (5.1 million USD).
In the first 4 months of 2021, Viet Nam has invested in 15 countries and territories, among which Japan ranks 14th, with 1 new investment project with 47,950 USD registered capital, accounting for only 0.01 % of the total newly registered and adjusted capital in this period.
*Source: Foreign Investment Agency, Ministry of Planning and Investment./.
(June 2021)