Japanese Investment Reaches Out to Viet Nam

Japanese companies have shown strong interest in Viet Nam as more and more firms expand their businesses here.

A motorbike factory of Japan's Honda group in Viet Nam

Miwa Holdings, a Japanese construction materials firm, is to enter into a joint venture with Viet Nam’s Construction Corporation (Vinaconex) to build a US$10.9-million factory called Vina-Sunwa. The factory is to produce locks and doors and is expected to be operational by 2011.

Tokyo-based chemical manufacturer Kureha will set up a subsidiary in Viet Nam next year to produce food packaging. The company will invest about US$18 million into a factory to be named Kureha Viet Nam in Bien Hoa city, Dong Nai province.

Marubeni Corporation recently agreed to invest a total of US$4.5 billion into Viet Nam, in which some US$1.5 billion will be spent developing an industrial energy complex in Binh Dinh province.

Furthermore, the Vietnam Machinery Assembly Corporation (Lilama) has signed a deal with the Sumitomo group to build a US$1.25-billion thermo-electric plant in Ha Tinh province.

Japanese companies consider Viet Nam one of the world’s top three countries or regions for business, according to a survey released by the Japan Bank for International Cooperation (JBIC).

The survey, published on December 4, ranks countries by their appeal as a destination for investment over the next three years. It was conducted prior to the Consultative Group’s meeting in Ha Noi.

This is the second time Viet Nam has taken third position in JBIC’s ranking, both times following China and India.

Source: VNA, SGGP – Translated by Thuy Hang

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