The number of Japanese investors in the central coastal city of Danang has risen sharply in the recent months, especially after the city hosted the Apec Economic Leaders’ Week in November last year.
According to the provincial authorities, many Japanese investors, such as Mikazuki, TODA, Mode Planning Japan, Sumitomo Mitsui Bank, Mitsui & Co, Fujikura Automotive and Mitsubishi, have worked with relevant authorities to find information investment in the city.
In November last year, the Danang Hi-Tech Park Management Board licensed Japanese Yamato Sewing Machine MFG. Co., Ltd’s project to produce automatic industrial sewing machines and accessories used in the garment industry. The plant, with a total investment of $28.527 million on an area of 2.8ha, is scheduled to come into operation in July 2018.
The Social Welfare Organisation Saiseikai Imperial Gift Foundation Inc and the Kishokai Medical Corporation last November also worked with Danang’s authorities about the construction of an international hospital project in the city.
Under the plan, the construction of the hospital project will be begun soon under two phases. The hospital will provide 50 patient beds in the first phase and the number will increase to 200 after the completion of the second phase.
Another Japanese firm, Mikazuki Corporation, has recently also proposed to the Danang authorities to consider approving the expansion of the Xuan Thieu tourist area in Danang City with the expansion area of over 53,000sq.m in the form of the annual land lease.
The $110 million project will feature a service complex including five-star hotels, water parks, game parks and food courts. This was the largest FDI project licensed in Danang’s tourism real estate in 2017.
Commenting on Danang’s investment environment, Mitsubishi Vietnam President and CEO Tetsu Funayama said that Japanese investors consider Da Nang “a typical city” when they explore investment and opportunities in Vietnam.
With the main focus on attracting investment in infrastructure, tourism, high technology and environment, Danang is a potential destination for investors such as Mitsubishi to invest in rail projects, education, public health under the form of publicprivate partnership (PPP), IT projects, electric cars and hybrid electric motors, he said.
Also referring to Danang’s attraction to Japanese firms, Akio Nekoshima, chair of the Japan-Mekong Regional Cooperation Committee and CEO of Kawasaki Heavy Industries, said that the economic growth in Vietnam in general and Danang in particular has been very impressive in recent years.
Akio said that a Japanese business delegation will visit Vietnam next month to explore investment opportunities in Danang, especially its port project.
Danang has so far had 553 FDI projects with a total registered capital of over $3.04 billion, of which investors from Japan ranked second with a total registered capital of $629.48 million.
The city has decided to choose theme titled ‘The year for promoting investment attraction’ for 2018 to capitalise on the success of the Apec Economic Leaders’ Week to boost the central city’s socio-economic growth.
Danang authorities said that it will take the city difficult to improve the size of the economy and become the leading of the central and Highlands regions if it does not promote investment attraction to enhance the growth.
Huynh Duc Tho, Chair of the Danang People’s Committee, said that the city authorities have made great efforts and drastically boosted administrative reforms in order to ensure an open, attractive and favourable business climate for investors and enterprises in Danang in recent years.
The city will continuously carry out policies and measures to develop economy, tourism, and infrastructure as well as to attract investment and innovation, he said.
http://www.hanoitimes.vn/investment/2018/02/81E0C1BF/new-wave-of-japanese-investment-in-danang-city/
