Japanese investment projects in Ba Ria-Vung Tau

Provincial People’s Committee Chairman Tran Minh Sanh says Japan was one of the first foreign investors in the locality soon after the introduction of open-door policy, and many Japanese firms have been operating successfully.

He cites Vina Kyoei Steel Company and Hikosen Cara Garment Company as those getting off to a good start in the first wave of Japanese investment.

Hikosen Cara founder Sachiko Okyuyama decided to invest in the Vung Tau-Con Dao special zone (now Ba Ria-Vung Tau province) in 1990 after negotiating a joint venture with Vung Tau import-export company. With its licence renewed in 2000, Hikosen Cara set up a garment company under its 100 percent ownership.

Vina Kyoei’s factory began operation in Phu My 1 Industrial Zone in 1995, serving as a foundation for the country to set up a steel production centre later.

It has recently built an additional steel billet production factory with an annual capacity of 450,000 tonnes, offering stable employment to 250 labourers in 20 years.

Vina Kyoei General Director Mitsuhiro Mori says he is enthusiastic about the investment environment in Vietnam, particularly in Ba Ria-Vung Tau province.

Despite the impact of global economic slowdown, his company has poured US$220 million into the steel billet production plant to raise its annual capacity to 500,000 tonnes.

Mori hopes the new plant will create more employment opportunities for local people.

Nippon Steel & Sumitomo Metal is another case in point. It established Nippon Steel & Sumikin Vietnam Company in 2010 and built a steel pipe production factory for transport infrastructure construction in Phu My 2 Industrial Zone in June the same year.

Nippon Steel Vietnam Company General Director Kenichi Kanezaki says the factory is the group’s first steel production project outside Japan. He says he was attracted to Ba Ria-Vung Tau by its open investment environment, attentive provincial authorities, abundant human resources, and friendly and industrious workers.

Twelve of 18 Japanese investment projects in Ba Ria-Vung Tau are concentrated in steel and PV pipe production, mechanics, fungi, seaport construction, garments, and seafood.