Jun 4, 2012

Vietnam - Japanese infrastructure developers arrive in VN sooner than fellow-citizens

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VietNamNet Bridge – Anticipating the new wave of Japanese investment in Vietnam, some Japanese infrastructure developers have arrived in Vietnam to set up industrial zones for the upcoming Japanese manufacturers.

Teaming up with domestic partners

Two Japanese investors are moving ahead with their plan to kick off the second stage of the Hiep Phuoc industrial zone project in Nha Be district in HCM City.

Mizuho Bank and Chodai Group are working with the Hiep Phuoc Industrial Zone Development Company on the plan to develop industrial zones for Japanese investors in HCM City. The information about the cooperation has not been revealed, because the involved parties are still under negotiations.

The project has caught the special attention of the public, especially after the HCM City Industrial Zone and Export Processing Zone Board of Management stated that it was considering setting up a zone for supporting industries which would prioritize attracting Japanese investors.

Hepza has said that it would look for the Japanese partners who have financial capabilities and experience in infrastructure development to team up with to build the above said industrial zone.

In Hanoi, Vietnamese N&G Group and Japanese Shimizu Corp recently have signed an agreement on the cooperation to develop the first industrial zone in Hanoi for supporting industries, which has the estimated investment capital of one billion dollars.

Under the agreement, Shimizu would team up with N&G to develop Nam Hanoi industrial zone (HANSSIP) by expanding the Dai Xuyen industrial complex in Phu Xuyen district.

Japanese not only have been targeting Hanoi and HCM City, but also the neighboring localities. Most Japanese investors cooperate with domestic partners to develop the projects. They understand that the cooperation would ensure the quick implementation of the projects, because the Vietnamese partners can find good locations for industrial zones and have experience in compensating local residents for site clearance.

The Long Duc Investment Company Ltd, a joint venture of Japanese Sojitz Corporation, Daiwa House Industry, Kobelco Eco-Solution and Vietnamese Donafood organized a ground breaking ceremony, starting the construction of the Long Duc Industrial Zone in Dong Nai province. The zone, which is designed to cover an area of 282.8 hectares and has the total investment capital of 1083 billion dong, is expected to inaugurate in August 2013.

Japanese Jesco Holding has decided to contribute capital to the Hoa Binh Investment and Infrastructure Construction Company, the developer of Long Hau 4 industrial zone in Long An province.

Japanese would help attract Japanese investors

Than Trong Duc, Business and Marketing Director of Long Hau 4 said the joining of Jesco would help attract Japanese investors which plan to come to Vietnam to set up production bases.

Other infrastructure developers have agreed with Duc that the joining of Japanese investors in the projects on developing industrial zones would allow to develop the zones satisfying the standards of Japanese manufacturers. Besides, they would help attract Japanese investors thanks to the community support tradition of Japanese people.

A Japanese successful investor would lure more other Japanese investors. Especially, Japanese manufacturers would feel better if they can set up production bases on the production premises developed by their fellow-citizens.

That explains why Japanese developed industrial zones have attracted many Japanese investors, though they have just become operational. The Long Duc industrial zone, for example, which just started the construction one month ago, has successfully called for Japanese investors, who have registered to lease 60 hectares here. These include the project of Lixil group which plans to pour 441 million dollars to build a construction material factory.

Source: TBKTSG


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