MPI strengthens cooperation with Japan's Toyama prefecture

At a conference for the signing on December 19, Deputy Minister Ngoc said that Vietnam had just been listed in the top 20 countries with the most foreign investment inflows, with disbursement of foreign direct investment (FDI) capital in the first 11 months of the year at $20 billion, an increase of 15.1 per cent on-year.

Ngoc and Hachiro signed the new MoU to establish the Toyama Support Desk, which will provide the foundations to strengthen the bilateral cooperation and promote Vietnam-Japan economic exchanges, and deepen the comprehensive relationship between the two countries.

Ngoc emphasised that Vietnam-Japan relations were in their best stage of development. "There is some room to promote cooperation in all fields to deserve the relationship of a comprehensive and reliable strategic partnership for peace and prosperity in Asia," she said.

In the official visit of Prime Minister Pham Minh Chinh to Japan a year ago, the two prime ministers agreed to promote cooperation in socioeconomic development through closely coordinating to implement major projects in infrastructure development, industrialisation, smart cities, and supply chains, especially by deploying a series of initiatives between the two countries.

"Toyama is considered a 'paradise' of the mechanical and food industries, leading the coastal industry of Japan with the presence of leading Japanese enterprises in the production of industrial machinery, manufacturing car components such as Fujikoshi Company, Komatsu NTC Company, and Tanaka Precision Machinery Company," said the deputy minister. "The prefecture's strengths are also priority areas for attracting investment in Vietnam."

She suggested Toyama government continue to promote cooperation and investment activities, especially in the fields of mechanical engineering, processing and manufacturing, high-quality agriculture, and transferring technologies to Vietnamese enterprises, as well as organising cooperation programmes to train and improve the quality of human resources.

"The Ministry of Planning and Investment (MPI) pledges to accompany and support Japanese enterprises, including those of Toyama prefecture, in investment and business activities in Vietnam; innovate to create the most open and favourable investment and business environment; and remove obstacles for Toyama enterprises in doing business," Ngoc said.

Hachiro said that since an earlier MoU of Toyama and the MPI signed in December 2016, they have worked closely with authorities and localities of Vietnam to organise many investment promotion and economic activities.

"I am impressed with Vietnam's economic stability despite the world's uncertainties, GDP growth of 2022 is still set for 8 per cent," said Hachiro. "Vietnam is the priority country that Toyama would like to invest and expand the facilities."

At the conference, leaders of such Vietnamese provinces as Hung Yen, Nghe An, Ha Nam, and Thanh Hoa showed off the provincial advantages and some information about investment and business environment. They also provided a commitment to welcome and accompany Toyama prefecture to do business here.

As of November 20, there are about 5,000 projects with the total investment of about $68.8 billion from Japan investors, ranking third out of 141 countries and territories, investing in Vietnam. Toyama prefecture's businesses have invested in 29 projects with the total registered capital of about $134.6 million in 10 cities and provinces in the country, including 16 projects in processing and manufacturing, with the total registered capital of about $121.1 million.

In the opposite direction, Vietnam has 101 investment projects in Japan with the total registered investment capital of $18.9 million, ranking 36 out of 79 countries and territories where Vietnamese groups have invested overseas.

Vietnam’s northern province of Quang Ninh is emerging as an attractive investment destination for foreign investors. Nakajima Takeo, chief representative of the Hanoi Office of the Japan Trade Promotion Organisation and vice president of the Japanese Chamber of Commerce and Industry in Vietnam, talked to VIR’s Minh Anh about Japanese interest in the area and the future trends ahead.

Japanese companies Tokyo Gas and Marubeni have joined forces with Petrovietnam Power and local machine manufacturer Colavi to establish a joint venture for an LNG-to-power project in Vietnam.

Vietnam Bank for Social Policies has built relationships with many Japanese partners over the years to help aid its credit policy development.