Can Tho City Attracting Japanese Investments

Six Japanese-invested projects totaling $1.35 billion have made Can Tho in Vietnam their home, solidly placing Japan as the nation with the highest registered capital in the city.

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Can Tho City Luring Japanese Investments
Deputy Consul General of Japan in Ho Chi Minh City Ogawa Megumi speaks at the event. Photo: baodautu.vn

A seminar was recently held in Can Tho on June 17 to attract Japanese investments in various sectors where the Mekong Delta city has a demand.

Can Tho, an city in Vietnam, has become a hub for Japanese investment. With six projects worth a total of $1.35 billion, Japan has emerged as the leading investor in the city. This information was shared by Vice Chairman of the municipal People’s Committee, Nguyen Van Hong, according to a report by VietnamPlus.

The city’s export value to Japan saw a significant increase, reaching $40.6 million within the first four months of this year. The main export commodities included seafood, apparel, farm produce, steel and steel products, pharmaceuticals, chemicals, feathers, and others. On the other hand, the city’s import turnover was estimated at $9.8 million, with prominent products being pharmaceutical raw materials, fabrics, leather, machinery, and equipment.

Can Tho City Luring Japanese Investments
Can Tho’s export value to Japan reached $40.6 million in the first four months of this year. Photo: VNA

Nobuyuki Matsumoto, the Chief Representative of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City, has emphasized the attractiveness of Can Tho for enterprises. With seven universities and a reputation as a major human resources training center in the Mekong Delta, Can Tho is an appealing location. The city’s workforce, especially in the field of information technology, is highly sought after for their skills in digital transformation, automation, smart factories, mechanical engineering, and electrical engineering.

The Deputy Consul General of Japan in Ho Chi Minh City, Ogawa Megumi, has highlighted the investments made by Japanese companies in the food processing industry in Can Tho. This particular city is well-suited for such investments due to its rich natural resources in agriculture and aquaculture, which are derived from the Mekong River.

She expressed her hope that the ongoing construction of expressways would facilitate easier transportation of goods from Can Tho to Ho Chi Minh City, the largest market in the region.

According to a recent survey conducted by the Japan External Trade Organisation (JETRO) in 2022, it has been revealed that a significant 60% of Japanese investors in the Asia-Pacific region have expressed their intention to expand their businesses in Vietnam within the next two years. This fascinating development was reported by the Nhan dan (People) Newspaper.

Can Tho City Luring Japanese Investments
60% of Japanese investors in Asia-Pacific said they plan to expand operations in Vietnam within the next two years. Photo: VNA

The rate of (specific metric) in the ASEAN region is the highest among all countries, only trailing behind India (72.5%) and Bangladesh (71.6%) in the Asia-Pacific region.

According to a poll conducted in August and September last year, the outlook for business profitability in Vietnam in 2022 has seen a strong recovery following the Covid-19 pandemic. This recovery is particularly notable in the production-consumption and direct services sectors, which have experienced significant increases in export volume and market purchasing power. These positive factors suggest a promising future for businesses in Vietnam in the coming year.

In the year 2023, it is predicted that the local manufacturing and non-manufacturing industries will experience a substantial growth of over 50%.

Another survey by JETRO has revealed that Vietnam is the second most popular investment destination for Japanese companies, following the US.

Rosy Huong