Many Japanese investors are now leaving China due to political problems, which is seen as a golden opportunity for Vietnam to grab them, economists say.
Dr. Dang Dinh Dao, former head of the Economics Research and Development Institute, has cited JETRO (Japan External Trade Organization) as saying that 30 percent of Japanese businesses, which want to make outward investment, eye Vietnam as the top choice.
Meanwhile, Japanese investment in China dropped sharply by 42.2 percent in the first six months of the year.
A report of the organization released in February 2014 showed that Vietnam has surpassed Indonesia, Thailand and the Philippines, the biggest rivals for Vietnam in the competition, to attract foreign investment, and has become the top priority market for Japanese investors.
Seventy percent of Japanese businesses in Vietnam are considering scaling up their business in 2014.
The Ministry of Planning and Investment said it received a group of 30 Japanese businesses last week, who came to Vietnam to learn more about the industrial zones in the north.
The representative of the Tokyo Chamber of Commerce and Industry (TCCI) said during the working visit to Ha Nam province that eight businesses of the visiting group of businessmen are willing to make investments in Vietnam, considering Vietnam as the most important destination in Southeast Asia.
Dao noted that Vietnam-Japan relations at the state level are in very good condition, which would facilitate Japanese investment in Vietnam.
Local authorities all have announced they will offer the best conditions for Japanese investors to develop their projects in the localities. In some cases, besides the investment incentives stipulated in the laws, local authorities may offer additional specific incentives to attract Japanese investors.
Nguyen Quang Khang from the Ha Nam provincial People's Committee said Ha Nam makes 10 commitments to investors, including ones on providing sufficient electricity, building infrastructure items and providing services in industrial zones.
Regarding administrative procedures, Khang said local authorities have committed to grant investment certificates to South Korean and Japanese investors within three days of the investment registrations. In some cases, it would take only one day to complete all the necessary procedures.
The provincial authorities also have committed to provide clean land free of charge to investors to build dormitories for workers and recruit workers for enterprises. They are considering setting up a committee in charge of supporting Japanese enterprises and a hotline through which enterprises can contact the province's Chair in English and Japanese.
According to Le Ngoc Hop, deputy director of the Thanh Hoa Planning and Investment Department, Japanese are considering developing clean agricultural production projects in the province. The investors said they need some 500 hectares of land to develop the projects.
Hop said Thanh Hoa province puts high hopes in the projects. In fact, the local authorities want to develop high-technology agricultural production, but they still have not found major investors who can organize production with advanced technologies.
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