Đà Nẵng city urges investment from Japan

Businesses from Japan join the Đà Nẵng-Japan Meet in exploring investment opportunities in the central city. Japan is seen as a top investor in Đà Nẵng with US$1.14 billion. VNS Photo Công Thành

ĐÀ NẴNG — The central city of Đà Nẵng has been calling potential investors for development of eight berths and series of infrastructure projects at the key Liên Chiểu Port by the end of 2024, expecting that Japanese businesses will seek investment opportunities in the port.

Director of Đà Nẵng City’s Investment Promotion Agency (IPA), Huỳnh Thị Liên Phương was pitching at the Đà Nẵng-Japan Meet, an event in the annual Việt Nam-Japan Cultural Exchange Festival, stating that Sumitomo Group from Japan has been trailing the Liên Chiểu Port Project.

She said the port, which is designed as a regional port and logistic centre in Asia, needs an initial investment in infrastructure and foundation facilities of an estimated US$2 billion and major investors will be announced later in 2024.

A factory of a Japanese company at the Đà Nẵng Hi-tech Park. Japanese investors eye in hi-tech industries, automobile, IT, tourism and aumomation in Đà Nẵng. Photo courtesy of Long Hậu Corporation

“The city will be building eight berths for docks of container ships, Liquefied Natural Gas vessels, integrated ships and the others. A wave breaker dyke system and a ring-road route connecting the port and key national highways and industrial parks have been developing since last year,” Phương said.

The beach city has drawn $4.3 billion investment from FDI projects, of which Japanese businesses constitute a 30 per cent share, to $1.14 billion, she added.

Chief Representative of the Japanese External Trade Organisation (JETRO), Takeo Nakajima, said Đà Nẵng has potential in information technology (IT) education and many universities have been given investment in human resources training to lure in the information industries.

Shiro Muto, chairman of the Japanese Chamber of Commerce and Industry in Việt Nam, said that Japanese investors keep an eye on developments in resorts, tourism, the automobile sector, semiconductor developents, chip design and automation.

He said the city should streamline procedures and train hi-quality manpower to meet the demands of Japanese investors.

Vice chairman of the city’s People’s Committee, Trần Chí Cường said that Đà Nẵng has been given a pilot plan on the development of a municipal government – the first of its kind in Việt Nam – to help speeding up the rapid and sustainable growth for the city and build it into a key driving economic power force for the country.

Cường said the Free Trade Zone project, which has recently been approved by the National Assembly, would create a huge and promising opportunity for all investors.

Investment in a port system is one of key investment project that Đà Nẵng has been calling out to businesses from Japan. Photo courtesy of Tiên Sa Port

He emphasised that import-export turnover between Japan and the city reached $1 billion (Đà Nẵng’s export to Japan was $650 million) last year.

Cường said the city has called for further and deeper investment from Japan in a series of major trending industries including semi conductors, AI, IT and green growth technologies.

He said Đà Nẵng has been greenlit by the central government in offering the most favourable conditions and top priorities for investors.

Lâm Thị Thanh Phương, from the Ministry of Foreign Affairs, underlined that Đà Nẵng has been playing a key role in attracting investment from Japan in terms of infrastructure, human resources, its location and the long historical ties between Japan and Việt Nam.

She said Japan and Việt Nam shared a similar culture and history, deep and effective co-operation.

“Japan was a major Official Development Assistance (ODA) provider with a 30 per cent share in total ODA in Việt Nam. Japan also invested $76 billion in Việt Nam, while hosting 300,000 labourers from Việt Nam,” Phương said.

She said a report from JETRO showed that 64 per cent of Japanese investors plan to expand their current investment in Việt Nam, while 600,000 Vietnamese people are currently working and studying in Japan, making them the second biggest expat community in the country.

The number of Japanese nationals in Việt Nam has also increased by leaps and bounds to 22,000, making great contributions to the socio-economic development of Việt Nam.

Two Japanese investors — Tokyo Keiki Precision Technology Inc and Niwa Foundry — were the first ever investors into the Đà Nẵng Hi-tech Park from 2013, while Fujikin Incorporated from Japan later launched its $35-million Research, Development and Manufacture Centre there.

Mikazuki Hotel Group of Japan opened the $168.16 million Đà Nẵng Mikazuki Resort & Spa.

Yokohama and Sakai have supported Đà Nẵng in building a carbon neutral model at Đà Nẵng Port and industrial parks in ‘green’ industries transformation. VNS