VietNamNet
Bridge – Japanese investors are marching
towards Vietnam. Not only accounting for 90 percent of the total foreign direct
investment (FDI) in the country; Japanese have been penetrating the Vietnamese
market through merger and acquisition (M&A) deals.
Of the
four big brewery companies which have registered to become the strategic
shareholders of Sabeco, two are from Japan – Kirin Brewery, the biggest drink
producer who has been operating a factory in Vietnam for the last two years,
and Asahi Breweries, which has advantages in hard liquor.
They
are the two of the huge number of Japanese investors who plan to make
investment in Vietnam in the time to come.
Japanese companies, both big and investors,
flock to Vietnam
Consumer
goods market has become the “aiming point” of Japanese investors. Nichirei has
spent more than 6 million dollars to obtain 19 percent of Cholimex. The sweets
manufacturer Ezaki Glico holds 10.5 percent of Kinh Do Group’s chartered
capital. House Food plans to set up a branch, preparing for trading packaged
food from 2013.
Aeon,
the biggest retailer in Asia, has officially announced the investment license
on the 109 million dollar first shopping mall in HCM City which is expected to
become operational in 2014. Nishitohge Yasuo, General Director of Aeon Vietnam,
said that the group decided to invest in Vietnam after realizing the great
economic development potentials and the high growth of the consumer goods
market.
A
report by Thomson Reuters showed that the total value of M&A deals in
Asia-Pacific (not including Japan) in the first quarter of 2012 reached 1.5
billion dollars. While the M&A market in the region dropped by 38 percent,
the Vietnamese market still could see the 270 percent increase in value.
In
2011, Japanese led the Vietnam’s M&A market with 14 affairs made, while the
number is expected to be higher this year. DIAIF fund bought 31 percent of
stakes of JVC, a healthcare equipment distribution company, while Tama Global
Investment bought 20 percent of CotecLand.
Japanese
investors also target small but potential businesses. Kmix bought 45 percent of
stakes of Huy Bao, Veglia Laboratories bought 20 percent of Viet Esco, Cyber
Agent fund bought stakes of Tiki and NCT.
Investment up, tax down
According
to the Japan External Trade Organization (Jetro), in 2011, the number of FDI
projects was double that of two years ago with 208 projects registered with the
total registered capital of 1.84 billion dollars.
Meanwhile,
in the first quarter of 2012 alone, Japanese capital flow to Vietnam reached
2.3 billion dollars, accounting for 89 percent of the total FDI capital in
Vietnam, making Japan the biggest foreign investor among 26 countries which
have FDI in Vietnam.
The
biggest FDI projects all have been registered by Japanese, including the Tokyu
Binh Duong urban area project, the tyre factory Bridgestone in Hai Phong,
Oshima Shipbuilding Khanh Hoa, Sumitomo supporting industries development – a
project developed by Shimizu Coro and N&G.
Meanwhile,
industrial manufacturers have announced the inauguration of their factories in
the first quarter of 2012. JS Group built a doorframe factory, Tamron
manufactured lens, Nippon Oil made lubricant, while Shin-Etsu recycled rare
earth and silicon materials.
Japan
is not only a big foreign investor, but also a big ODA donor in the last 20
years. This can bring big advantages to Japanese enterprises when they invest
in Vietnam.
Experts
have said that Japanese enterprises now have big advantages when doing business
with Vietnam thanks to the commitments made by the Japanese government and the
support from Japanese non-government organizations, Under the ASEAN-Japan
economic partnership agreement, in 2012-2015, a lot of imports enjoy tax
reductions since April 1, 2012.
Source:
SGTT
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