The month of January saw Vietnam attract a total ofUS$760 million in newly-registered and additional capital with Japanese investors taking the lead, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Kyoshin, Katolec Global Logistics, and Sews Components Vietnam II are among the three most notable investors from Japan as January saw them inject US$200 million into Vietnam, making up more than half of US$364 million in Japan’s total FDI into the country.
One notable project was by Japanese company Kyoshin Vietnam which raised investment capital by US$134.7 million in order to construct a factory specializing in manufacturing molding products and electrical spare parts.
Others included a US$65 million logistics project funded by Katolec Global Logistics Vietnam in the northern province of Ha Nam and the US$64.89 million project funded by Hay Sews Components Vietnam II which saw a factory built in the northern province of Hung Yen.
With investment coming in three major projects, Japan retained its leading position among FDI investors nationally during January, this was followed by the Republic of Korea (US$349.1 million), and China (US$307.8 million). During the course of 2019, Japan is predicted to top foreign investors in Vietnam.
Goki Nobuka, CEO of the Thang Long Vinh Phuc Industrial Park Co, Ltd said the wave of Japanese investment into Vietnam has significantly increased, noting that a total of eight Japanese businesses have poured investment into Vinh Phuc Industrial Park recently.
Upon completion, Vinh Phuc IP is expected to welcome 80 Japanese investors, focusing on a wide range of fields such as the supporting industry, hi-tech, engine, and component production for the automobile industry, electronics components, and precision mechanics.
Dr. Phan Huu Thang, former director of the Foreign Investment Agency, said with Japan’s investment achievements in Vietnam over the past 30 years since the Foreign Investment Law took effect in 1987, there has been a stable trend of Japanese investment into Vietnam.
He pointed out that with momentum for growth in 2018, Japan’s flow of capital into Vietnam is projected to keep increasing throughout 2019 and beyond.