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| Business support activities creating their own advantages in attracting investment |
Creating spillover effects in investment
Japan is one of the countries with large sources of investment capital and ODA funding for Vietnam, including Thua Thien Hue. In recent times, many ODA projects of Japan invested in Thua Thien Huehave brought beneficial impacts, effectively serving the goals of economic and social development, including the projects: “The construction of Hue Central Hospital conforming to international standards”; “Natural disaster prevention and control”, and “Hue Monuments Restoration Program”.
Enterprises with Japanese investment capital have also contributed greatly to the local budget as well as created competitive advantages for Hue. According to data from the Provincial Department of Planning and Investment, there are currently 136 FDI projects in Thua Thien Hue, with a total registered capital of 4,600 million USD, 20 FDI projects of which are invested by Japanese enterprises, with a total registered capital of 248 million USD, accounting for 15% in quantity and 5.4% in FDI capital of the whole province. Among which, seven projects, with a total investment capital of 54 million USD, pertain to the provincial Economic and Industrial Zone, mainly attracting enterprises operating in the fields of garment, mechanics, plastic production, and adhesives. The remaining 13 projects, with a total investment capital of 194 million USD, involve sectors outside the provincial Economic and Industrial Zone, attracting businesses operating in the fields of information technology, trade centers, and wine production.
These enterprises contribute significantly to the economic and social development of the province. In 2023 alone, Japanese enterprises created jobs for 2,000 workers and generated the revenue over 14 million USD. Typical examples of which include the garment project of MSV Company Limited, providing employment opportunities for over 1,090 workers; the information technology project of Brycen Company Limited, employing over 360 IT workers, etc.
In addition to contributing to increasing local budget and creating jobs, Japanese investors with prestige and strengths in the technology sector have also stimulated investment resources, created competitive pressure, promoted innovation and technology transfer; developed supporting industries, and encouraged local enterprises to participate in the global production value chain. At the same time, these enterprises also contributed to significantly promoting investment activities.
This can be partly seen in recent activities of the AEON MALL Hue Commercial Center project of AEONMALL Vietnam Company Limited. When this project was put into operation, it attracted major Japanese brands and famous brands in the world to Hue such as Aeon Vietnam Supermarket, Muji Supermarket, Uniqlo, etc., creating more highlights in attracting investment, developing trade, promoting tourism, etc.
Promoting on-site investment
According to Mr. Phan Quoc Son, Deputy Director of the Provincial Department of Planning and Investment, the province had implemented many innovative solutions in investment promotion activities as well as preferential policies to attract and encourage investment in order to achieve the above investment attraction results, one of which worth mentioning was the supportive practices for investors to create an open, transparent, favorable and effective investment environment.
The provincial leaders are also ready to meet, dialogue, and contact with businesses and investors to listen, discuss and remove difficulties to support investors in the process of implementing projects in the area. Investment projects in the province are also subject to the highest preferential policies of the locality as well as the Investment Law, such as the commitment to offer infrastructure support for projects from top to bottom, support in providing labor resources and training local labor resources.
Perhaps that is why Thua Thien Hue has continuously welcomed many Japanese enterprises to Hue to explore investment opportunities recently. In early October, a working group of the Vietnam Business Association in Japan (VJBA) also came to Hue to seek investment opportunities. This illustrates that Japanese enterprises have been paying attention to Hue as their potential target for investment.
Ms. Tong Thi Kim Giao, President of the Vietnam Business Association in Japan, said that with the goal of promoting the establishment of a sustainable business environment and ensuring long-term development for member enterprises, the Association had taken action to connect with many localities, especially Thua Thien Hue, helping Japanese enterprises seek investment opportunities in Hue, especially investment opportunities in the production of precious raw materials and medicinal herbs to develop pharmaceutical and cosmetic products, promote trade and export, develop tourism, etc.
Meetings like the afore-mentioned one are an opportunity not only for Thua Thien Hue to introduce its strengths and preferential policies to investors, but also for enterprises to access investment advantages and share investment needs. From there, enterprises can propose new projects, innovate investment promotion activities, and create a competitive advantage for Hue compared to other localities in the region.
Mr. Phan Quoc Son informed that Thua Thien Hue was focusing resources on investing in developing infrastructure and connecting traffic systems to create the most favorable conditions to attract FDI investors. Particularly for Japanese enterprises, Thua Thien Hue hopes that these enterprises would research and invest in infrastructure of economic zones, industries, processing, manufacturing, electronics, automobile manufacturing, high-tech zones for pharmaceuticals, biology, medicine, information technology, agriculture, etc.
To support investors, Thua Thien Hue also opened the FDI Club office, established FDI branches of other countries, regularly organized meetings and dialogues to create connections and mutual support among FDI enterprises, in addition to establishing the Provincial Center for Trade and Investment Promotion and Enterprise Support to accompany investors from the investment research stage to project implementation, thereby promoting on-site investment, promptly dealing with proposals, recommendations, difficulties and obstacles of enterprises and investors to create a friendly and open investment and business environment.