1. The Japanese business community - from the earliest presence to the largest total investment capital in Da Nang City
As of June 30, 2023, Da Nang city has attracted about 1,018 FDI projects with a total capital of about 4.07 billion USD, of which, there are about 239 projects from Japan with a total capital of 1.07 billion USD. It can be seen that the Japanese business community has the largest total investment capital among the total number of FDI enterprises from 45 countries and territories investing in Da Nang (followed by the FDI business community from Singapore (about 842.2 million USD), USA (763.3 million USD), B.V.I (367.9 million USD), Korea (363.9 million USD)).
Not only is the foreign investment community with the largest amount of investment capital, Japanese businesses are also the earliest foreign investors establishing and operating in Da Nang. There are many Japanese enterprises that have been established in Da Nang for 30 years, such as Branch of Acecook Vietnam Joint Stock Company (the earliest FDI enterprise in Da Nang, licensed since December 15, 1993), Vietnam - Japan Paper Material Production Company Limited (Vijachip); Branch of Vietnam - Japan Combined Transport Joint Venture Company No. 2 (Logitem VN), etc. Many large Japanese enterprises in Da Nang also have a long history of establishment and development for more than 20 years in Da Nang including Viet Hoa Electricity Company Limited Company (or Murata Company with total investment capital of 119 million USD), Mabuchi Motor Vietnam Da Nang Company Limited (total investment capital of 89.7 million USD), etc.
Acecook Vietnam Joint Stock Company Branch in Da Nang - The earliest FDI enterprise present in Da Nang
(December 15, 1993)
2. Japanese FDI focuses on the city's key economic sectors
Regarding the structure of the investment sector, if calculated by the number of projects, there are about 180 projects (accounting for 70% of the number) investing in the field of commercial services (mainly consulting services, information technology, healthcare, education etc). However, if calculated according to the investment capital structure, 65% is invested in the field of manufacturing, processing and manufacturing industry; followed by 19% invested in tourism and real estate (details in the table below).
Data on Japanese outward investment status in Da Nang accumulated until June 30, 2023
(Source: Compiled by the author based on the list of FDI projects of the Department of Planning and Investment of Da Nang city)
Japanese businesses investing in Da Nang play an important role in the city's economy in production, business, creating jobs and contributing to the city's budget revenue. Many businesses have prominent positions in several economic sectors of the city. For example, in the field of tourism, there is ODK Mikazuki Vietnam Co., Ltd. (with the largest investment capital among all projects of Japanese enterprises with 167.5 million USD, ranked fourth among more than 1,000 FDI project in Da Nang); Route Inn Group Company with Grandvrio City Danang Hotel project (58.6 million USD); In the field of manufacturing and processing industry, there are some typical enterprises such as Murata (119 million USD), Mabuchi Motor Vietnam Da Nang (89.7 million USD), Daiwa (45 million USD), Toyota Okayama Da Nang (40.2 million USD), Foster Da Nang (22 million USD), etc. Especially there are a number of high-tech industrial enterprises inclusive of Tokyo Keiki Precision Technology Co., Ltd., Fujikin Da Nang, Niwa Foundry Vietnam, etc.
ODK Mikazuki Vietnam Co., Ltd
- The enterprise with the largest investment capital among Japanese enterprises in Da Nang
3. Investment trends of Japanese FDI in Da Nang in the coming time
Analyzing the current status of Japanese investment structure in Da Nang above can help identify Japanese investment trends in Da Nang in the near future. The promotion of Japanese investment to Da Nang City in the coming time will continue to be boosted, especially in the fields of high-tech industry, information technology, healthcare, education, and logistics and tourism to utilize the advantages of Da Nang city such as strategic location, good infrastructure, quality human resources, quality of life, etc. In the coming time, FDI flows from Japan into Da Nang is forecast to continue to grow rapidly and sustainably.
It can be seen that the relationship between Da Nang and localities and businesses in Japan has achieved many fruitful and remarkable results. In order for the relationship between Da Nang and Japan to become even better in the coming time, Da Nang city will continue to improve open investment policies, prepare infrastructure and human resources, especially in the sectors which are Da Nang strenghths and investment priorities, and match Japan's trend of investing abroad such as high-tech industry, information technology, healthcare, education, etc. In addition to continuing to promote the work of the Foreign Investment Mission according to the Project approved by the City People's Committee, the city will continue to promote support for the city's current FDI business community to continue investing and expanding projects in the city. This is a very important business community because it has a long history of investment and production experience in Da Nang city and can play as "media ambassadors" of Da Nang city to other international investors.
