Binh Duong, an attractive destination for Japanese investors

Based on the fine friendship between Vietnam and Japan, Binh Duong has continued being an attractive destination for capital flow from Japan in recent years. Noticeably, Japanese investors in the province have focused on hi-tech, environmentally friendly projects and quality urban-service ones, greatly contributing to the local development.

Leading FDI capital flow

Binh Duong now ranks the second in attracting FDI capital from Japan after Thanh Hoa, according to the latest figures released by the Consulate General of Japan in HCM city.

 Customers at Aeon Mall Binh Duong Canary invested by Japan’s Aeon Group

According to Yamamoto Kazuhito, Head of the Industrial Group 3 under the Consulate General of Japan in HCM city, there was a constant increase in the FDI capital flow from Japan to Binh Duong over the past years. So far, Binh Duong has lured 144 Japanese-invested projects. This has helped the province lead the nation in the number of projects from Japan.

He also said that there has been an increase in both quantity and size for Japanese-invested projects in Binh Duong in recent years. Among the 2,576 FDI projects in the province with total registered capital of more than US$22bln, there are 236 Japanese-invested projects capitalized more than U$5bln, accounting for 9.2% in the number of FDI projects and nearly 23% in the amount of FDI capital in the province.

According to provincial Department of Planning and Investment, each project from Japan is valued at more than US$21mln, the highest figure among countries and territories pouring investment into Binh Duong at present. Thus, Japanese investors now rank first in the total amount of capital as well as capital of each project among foreign investors in Binh Duong. All showed that the efforts by Binh Duong in investment attraction have brought the locality positive results.

Noticeably, there is a diversification of Japanese enterprises’ investment scopes, ranging from electronics, steel production, food processing to auxiliary industry…Many Japanese-invested projects with great capital include Maruchi Sun Steel Co.Ltd. capitalized at US$420mln, Wonderful Saigon Electrics Co.Ltd. with US$240mln, Maruzen Foods Vietnam Co.Ltd. with over US$100mln…

Boosting friendship to enhance prestige

Toshiaki Koshimura, Chairman of Japan’s Tokyu Group said that before Binh Duong’s attractive investment climate plus Binh Duong new city’s potentials, his group decided to make investment in the locality.

On Mar.2012, the Tokyu Binh Duong Garden City project, a joint venture between Becamex IDC and Japan’s Tokyu Group in Binh Duong New City was officially started for construction in Binh Duong new city. Covering more than 110 hectares, the project includes around 7,500 apartments, houses; recreational facilities, offices…This is also the province’s biggest FDI project with total investment capital of US$1.2bln.

Among the Japanese-invested projects in the province, the US$95mln-Aeon Mall Binh Duong Canary invested by Aeon, the biggest retailer in Asia, which was inaugurated and put into operation in 2014, is also very impressive. It has so far become an ideal place for shopping and recreation of people in Binh Duong and other neighboring localities with total revenue beyond the expected level.

Many Japanese-invested projects in the province have also decided to raise their investment capital for production expansion. For example, Sun Steel Joint Stock Co. increased its total investment capital to US$420 million. GS Battery Co. also raised its total investment by US$9mln…

Obviously, with advantageous conditions, Binh Duong has become an attractive destination for Japanese investors. The selection of Japanese investors in making investment in Binh Duong has not only expressed the closed friendship between Vietnam and Japan in general, but also reflected the prestige of the province among the Japanese business community. Hence, according to experts, the FDI capital flow from Japan to Binh Duong will continue increasing in the coming time. This will be also an important element, contributing to the local development.

Reported by Khanh Vinh-Translated by K.T