(VEN) – Director of the Japan External Trade Organization (JETRO) in Ho Chi Minh City (HCMC) Kazuhiko Osato while attending the organization’s trade show for Japanese national pavilions at the Vietnam International Precision Engineering, Machine Tools and Metalworking Exhibition and Conference (MTA Vietnam 2013), which will take place in HCMC from July 2-5, 2013 said Japanese businesses are increasing their presence in Vietnam.
Japan has the largest foreign investment in Vietnam. In 2012, Foreign Direct Investment (FDI) flows into Vietnam from Japan reached US$7.8 billion, accounting for 51 percent of the total FDI registered in the country. In the first five months of the year, Japan has also invested US$3.7 billion, raising its total registered capital in Vietnam to US$32.28 billion and total Japanese investment projects to 1,947 projects.
For the past five years, many Japanese businesses have built production plants in Vietnam. In 2012, Japanese multi-national corporations such as Fuji Xerox and Nidec Seimitsu poured more capital into production bases in Vietnam. Nidec Seimitsu completed its fifth project in Vietnam with a total investment capital of US$40 million, specialized in producing micro motors in mobile phones with a production capacity of 45 million units of products per month and earning about US$8 million a month after three years of stable operation. In the coming time, Nidec Seimitsu plans to produce motors used in medical equipment.
Other well-known brands which are already present in Vietnam market are tending to expand investment and set up retail outlets, including Brother, Hitachi, SOC, Bridgestone, Canon and Yamaha.
Exhibitors believe there is a potential market for suppliers of industrial products of both countries only counting with the current Japanese investors present in Vietnam. Along with the growing number of Japanese production bases in Vietnam, the number of smaller Japanese manufacturing companies providing technological solutions and machine, equipment for industry production in Vietnam will likely to raise as well as their presence provides the link to break into the Vietnamese market.
MTA Vietnam’s organizers reported that Japan and four other countries will have pavilions to display their products. 38 Japanese enterprises will participate at the event is the highest rate since 2005 (from 2005 to 2012, only 54 Japanese enterprises participated in MTA Vietnam). Japan’s national pavilions will be coordinated by JETRO, and manly consist of small to medium-sized enterprises which will introduce equipment like hand tools, electronic components, gears, measuring instruments, and machine tools.
Kazuhiko Osato said the aim of JETRO’s participation at MTA Vietnam 2013 is to encourage Japanese enterprises to continue their investment and presence in Vietnam. This event is also seen as a practical activity to mark the 40th anniversary of the establishment of Vietnam-Japan diplomatic relation this year./.
By Viet Anh