Improving economic cooperation between Vietnam - Japan: Forming Japan Desk in BR-VT to attract investment

(Vietnam Logistics Review) After 40 years of cooperation and development between Vietnam-Japan in general and between BR-VT and Japan in particular, the province has been carrying out measures to attract more investment from Japan to fulfill the target of making BR-VT an industrial province and international transshipment port in the future. Recognizing the need to improve investment environment, the provincial people’s committee has formed Japan Desk to support Japan’s investors.

FROM TRUE DEMANDS

In the recent years, the economic zone with FDI has contributed a greater part to the social-economic development of the province. There have been 290 FDI projects so far with the total registered capital of USD 26.6bn, among which are Japan’s 19 investment projects with the total investment capital of over USD 1.9bn mostly in the fields of steel production, oil outsourcing, mechanics, seaports, garment, and sea-food processing… Although they are not many in number, they have higher implementation capital, a 70% of registered capital. Besides making good use of advantages and potentials of the province in the fields of oil, gas, electricity, fertilizer and tourism, the province has been trying to attract more investments in other fields of supporting industries, logistics services, financial services, banks, medical services, making spearheads to restructure the provincial development in the future.

Japan Desk is one of activities in the contents of join initiative Vietnam-Japan signed in April 2003 between the two governments Vietnam-Japan. Its Southern office located in HCMC has had a lot of supports to BR-VT in attracting investments from Japan. It is necessary to have Japan Desk in the province for Japanese consultants can have immediate supports and solutions for Japanese enterprises operating in the province.

Together with the forming of Japan Desk, a memorandum of understanding between the provincial People’s Committee and Mizuho Bank, Japan has been signed, marking a significant improvement in investment promotion from Japan to the province. Mizuho is one of prestigious large banks in Japan. Its contribution in BR-VT will creates prospects of attracting more Japanese investors to the province for tourism, business and investment. Mr. Nakajima Satoshi – Japan’s General Consulate said :” With the support from JICA, Japan Desk in BR-VT will have effective activities in supporting Japan’s enterprises who already have investments in the province or who have intention to do so. To Mizuho Bank, I hope it will have effective activities to support Japanese enterprises in the province and to help develop the Southern economic corridor.”

FUNCTIONS OF JAPAN DESK

According to Mr. Kikuchi Tadashi- an JICA expert in investment promotion and business environment improvement: “It is important for BR-VT to spread out messages to promote active images of the province and to receive information from enterprises…”. To do so, Japan Desk has been formed with necessary functions and characteristics under the guidance of the provincial People’s Committee to support enterprises.

It will cooperate with Southern Japan Desk in HCMC to support Japanese enterprises. To reach the target of industrializing the country in 2020, the South of Vietnam should be developed. BR-VT, with its Cai Mep- Thi Vai international port built from Japanese ODA, will be the important trading gateway to connect American market in the East via Pacific Ocean, connect to countries as Thailand, Myanmar, India and Middle East in the West via the Southern economic corridor

Japan Desk’s function is to support necessary information about investment, and provide initial assistance to Japanese investors when exploring the investment environment in BR-VT. When connecting to HCMC Japan Desk, associations, investment promotion organizations can promote the image of BR-VT to Japanese business community. Japan Desk also help to solve difficulties that enterprises operating in the provincial area are facing; research and propose policies and mechanism to attract direct investments from Japan to the province; and connect to “one-stop” services at Industrial clusters and zones in providing assistance and guidance to Japanese investors in carrying out investment procedures and related services.

Mr. Hirotaka Yasuzumi- Executive Director of Jetro, HCMC said: “Japan Desk will enhance the communication with Japanese enterprises if it works well. The guidance, information support and problem solving will create trustful relationship between Japanese enterprises and the province, boost up investment and business activities. This will be a contribution to the provincial economic development.”