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Thursday, December 13 2018
Tiếng Việt
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Date 12/09/2018-09:12:00 AM
Vietnam – Japan: comprehensive strategic partnership in all fields
(MPI) - From September 7th to 12th, 2018, in Japan, the delegation of the Ministry of Planning and Investment, led by Deputy Minister of Planning and Investment Vu Dai Thang worked with Japanese Government’s agencies, some locals’ authorities, Japanese partners.

MOU Signing Ceremony between the Foreign Investment Agency and Shoko Chukin Bank on assistance and investment promotion of Japanese small and medium enterprises in Vietnam. Photo: MPI

Vietnam – Japan, comprehensive strategic partnership in all fields

In the last years, the relationship between Vietnam and Japan has been constantly developing, becoming comprehensive strategic partnership in all fields, especially in economics, trade, and investment. Japan is Vietnam's largest official development assistance (ODA) country, the second biggest foreign investor, the third greatest partner in tourism and the fourth biggest partner in trade. Until now, Japan has invested in more than 3,865 valid projects with the total registered investment capital of nearly 56 billion USD, accounting for 16.7% of total FDI into Vietnam. In particular, in 2017, Japan became the largest investor in Vietnam with the registered capital of nearly 10 billion USD. With this growth, Japan continues to hold the number one position in the first eight months of 2018, with the registered investment capital of over 7 billion USD, accounting for nearly 29% of the total foreign investment capital registered to invest in Vietnam in the first eight months of 2018.

According to a recent report of JETRO, the investment environment of Vietnam has received positive reviews from the Japanese business community. 87.7% of Japanese enterprises believe that expanding businesses in Vietnam will help increase their revenue; over 60% of Japanese enterprises had profitable businesses in 2017 and 66.6% of Japanese enterprises investing in Vietnam are planning to expand their business and continue to consider Vietnam as a crucial investment destination. The JETRO survey also emphasizes that Vietnam's ratings on business risk are decreasing, which means that the investment conditions are improving. These are an enormous encouragement and the motivation for Vietnam to continue completing its policies and investment environment.

Vietnam is continuing to innovate and has some intense transformations, with the highly open economy, the trade scale in 2017 of nearly 425 billion USD, nearly 1.9 times the GDP, over 26,438 FDI projects from 129 countries and territories with more than 333 billion USD of registered capital, realized capital of over 183 billion USD.

According to the World Bank’s rating, Vietnam’s business environment rank continues to improve, reaching 68th position among 190 considered economies, up 14 places as compared to 2017. In mid-May 2017, Moody's has raised Vietnam's credit rating from "stable" to "positive". Vietnam Manufacturing PMI announced by Nikkei in July 2018 reached 54.9 points, the highest level in the ASEAN region, showing the stable and continuous increase in purchasing power and production capacity of Vietnam.

Vietnam welcomes Japanese enterprises to make long-term investments in Vietnam, support the transfer of new technologies, enhance brand value and financial capacity, corporate governance, participate in the manufacturing and supply chains, develop consumer market.

The Government of Vietnam commits to continue to give priority to and facilitate the most favorable conditions for Japanese enterprises

Deputy Minister Vu Dai Thang speaking at the Vietnam - Japan Investment Cooperation Forum in Kanagawa Prefecture. Photo: MPI

"Beside the cultural exchange activities, economic, trade and investment exchange activities are always of interest and placed on top priorities," Deputy Minister of Planning and Investment Vu Dai Thang emphasized at the Vietnam - Japan Investment Cooperation Forum in Kanagawa on September 7th, 2018.

Speaking at the forum, Deputy Minister Vu Dai Thang said that Vietnam is promoting M&A activities together with equitization of large SOEs in areas such as transportation, infrastructure, victuals, agriculture, telecommunication, trade, services, tourism, construction, etc. This is a great opportunity for Japanese investors and enterprises to become strategic partners of Vietnamese enterprises in fields with great potentials for development. In recent years, large corporations of Japan have been very dynamic in joining in the equitization of Vietnamese enterprises and have become strategic partners of Vietnam’s large enterprises in the key sectors and fields of Vietnam's economy, such as finance, banking, airway, energy, medication, etc. The Government of Vietnam commits to continue prioritizing and facilitating the most favorable conditions for Japanese enterprises to participate in the equitization and become strategic partners of Vietnamese enterprises, thereby contributing to the materialization of the deep and wide strategic partnership between the two countries.

Viet Nam is focusing on completing the legal framework and facilitating all favorable conditions for boosting the PPP model in infrastructure development, especially concentrating on attracting domestic and foreign investors to participate with flexible capital contribution ratio, open mechanism; at the same time, promoting start-up business, linking its start-up ecosystems with the region and the global economy. Vietnam facilitates conditions for foreign investors and economic organizations with foreign capital to invest in Vietnamese start-up businesses by simplifying procedures for the transfer of contributed investment capital and the remittance of profits abroad.

At the forum, representatives of the Ministry of Planning and Investment introduced the investment environment of Vietnam; representatives of Ha Nam, Hung Yen and Long An provinces introduced the investment environment in these localities; there were also introductions of Japanese enterprises investing in Vietnam and Vietnamese businesses investing in Japan; etc.

In the morning on the same day, Deputy Minister of Planning and Investment Vu Dai Thang worked with Shoko Chukin Bank and attended the MOU Signing Ceremony between the Foreign Investment Agency and Shoko Chukin Bank on the cooperation to support and promote investment of Japanese small and medium enterprises (SMEs) into Vietnam. This is the policy bank of Japanese Government established in 1936, with the main activity of supporting SMEs. The bank has a market capitalization of about 218.6 billion ¥, revenue in 2017 reached 134.4 billion ¥, more than 7,500 its clients are SMEs. Currently, the Bank has about 400 clients who are Japanese SMEs with subsidiaries and are operating in Vietnam.

On the morning of September 7th, 2018, Deputy Minister Vu Dai Thang also worked with JICA Vice President, Mr. Kazuhiko Koshikawa, in Tokyo, to promote the cooperation on supporting SMEs of two countries, and to exchange information on some contents regarding ODA cooperation between Japan and Vietnam.

The Ministry of Planning and Investment and Kyushu builds a support channel for enterprises of the two countries

Deputy Minister Vu Dai Thang speaking at Forum. Photo: MPI

Speaking at the Vietnam Investment and Economic Forum in Kyushu on September 10th, 2018, Deputy Minister Vu Dai Thang affirmed that Vietnam always highly appreciates the Kyushu economic region as the big economic region in the west of Japan, geographically, it is the closest area of Japan to Southeast Asian countries, including Vietnam, with an early tradition of trade and people to people exchange with Vietnam and legends still preserved today. Kyushu region, with its strength in auxiliary industries, gathers a large number of Japanese SMEs in the fields of mechanism, manufacture, this is also a famous region in Japan in the field of high-tech agriculture with many famous agricultural products such as breeding, farming, fishing, and processing seafood, etc. These are the areas that Vietnam needs to cooperate with Japanese enterprises.

Ministry of Planning and Investment commits to continue working closely with the Kyushu Economic Federation to build a support channel for the two countries’ enterprises in the most effective way during the process of exploration, investment and business in Vietnam. With the complementary advantages from both sides as mentioned above, Deputy Minister Vu Dai Thang believes that more and more Japanese enterprises will invest successfully in Vietnam and numerous Vietnamese elite students will come to Japan to study, work and become an important bridge for the development and cooperation process between Kyushu region and Vietnam.

On the same day, Deputy Minister Vu Dai Thang had a working session with the Deputy Governor of Fukuoka prefecture, Japan, Mr. Hiroshi Ogawa. At the meeting, the two sides hope that the local authorities in the prefecture will work closely with the Vietnamese Ministry of Planning and Investment to promote the enterprises' investment into Vietnam, especially enterprises in agricultural production, the prefecture’s strong field; at the same time, promote trade and investment cooperation between the two countries in general, Fukuoka prefecture with Vietnam in particular, continue increasing study tour and exchange delegations for mutual understanding.

Continue increasing study tour and exchange delegations, intensifying cooperation with Vietnamese enterprises

Deputy Minister Vu Dai Thang presenting souvenir to the Deputy Governor of Aichi Prefecture, Senta Morioka. Photo: MPI

On September 11th, 2018, in Japan, Deputy Minister Vu Dai Thang worked with Deputy Governor of Aichi Prefecture, Senta Morioka to discuss promotion of trade and investment cooperation, people to people exchanges between the two sides.

Speaking at the meeting, Deputy Minister Vu Dai Thang highly appreciated the close cooperation between the provincial authorities and the Ministry of Planning and Investment in promoting enterprises' investment, especially mechanical manufacturing enterprises to invest in Vietnam. At the same time, he hopes that the provincial’s Government will study to support in receiving Vietnamese apprentices and trainees as well as in vocational training at universities and colleges in Vietnam.

On the same day, Deputy Minister Vu Dai Thang worked with the Mayor of Anjo city, Aichi prefecture, Japan, Mr. Kamiya. At the meeting, Deputy Minister Vu Dai Thang affirmed that the Ministry of Planning and Investment would support enterprises in Anjo city to seek investment destinations and capable partners to cooperate in Vietnam. In addition, Deputy Minister hopes that Anjo city would coordinate with the Ministry of Planning and Investment to deploy the human resource training programs, cooperate with vocational training units in Vietnam to facilitate conditions for Vietnamese students to practice with companies in the city.

Deputy Minister Vu Dai Thang working with DENSO. Photo: MPI

During his visit to Aichi prefecture, Deputy Minister Vu Dai Thang paid a visit and worked at DENSO, Japan's largest automotive components manufacture corporation. At the meeting, Deputy Minister suggested the Corporation to continue promoting its important role as a bridge in promoting the investment and trade cooperation between the two countries in general, to further increase study tour and exchange delegations, intensify cooperation with Vietnamese enterprises and hopes the Corporation to formulate an investment strategy that identifies Vietnam as an essential key link in the Corporation’s global value-added chain. Especially, the Deputy Minister suggested the Corporation consider the possibility of linking and using Vietnam's parts manufacturing companies in its supply chain, including human resource training and technology transferring. The Ministry of Planning and Investment willing to be the focal point, connecting DENSO Corporation with Vietnamese enterprises./.

Hien Nguyen
Ministry of Planning and Investment

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