Japanese companies eye investment expansion in Mekong Delta

Addressing a working session held on February 23 with the Vinh Long provincial administration, Koji explained at present, Japanese firms are mainly focused on investing in Ho Chi Minh City and neighbouring localities, with labour and construction costs in these areas being high and the land fund in industrial parks now being limited.

As a result of these factors, Japanese firms are actively looking for investment opportunities elsewhere throughout the Mekong Delta region, including in Vinh Long, he said.

According to the executive, Japanese investors typically face difficulties, including excessive administrative procedures, which can be quite complicated and take a long time to handle, and they hope that local authorities will help foreign firms to tackle these obstacles in order to attract greater foreign investment.

Nguyen Van Liet, vice chairman of the provincial government, welcomed Japanese investors seeking to channel their capital into the local sectors of support industries, processing and manufacturing, smart technology, among others.

Vinh Long is committed to creating the best possible conditions for investors to undertake their projects in the locality, he assured.

Last year saw Vinh Long’s export turnover to the Japanese market reach US$60.2 million, making up 8% of the province’s total export turnover and increasing by 40% against the figure recorded in 2021.

The locality mainly exports leather shoes, textiles, auto parts, handicrafts, and processed agricultural products to the Far East nation.

Japan now has 11 valid investment projects valued at US$213.8 million, becoming the largest foreign investor in Vinh Long.

Typically, Japanese firms pour investment into fields such as food production and processing, farm produce processing, warehousing and storage services, and the manufacturing of machines, tools, and sewing machine parts.