Ba Ria - Vung Tau: Dream Land for Japanese Investors

So far, Ba Ria - Vung Tau province has 19 investment projects from Japan with a total investment of more than US$1.84 billion investment (oil and gas projects and ODA not included), and Japan ranks 7th among countries investing in the province. Of which, 12 projects have been put into operation such as steel production, oil and gas pipe processing, garments, ports, high quality steel, etc. In parallel with efforts to attract investment, Ba Ria - Vung Tau also sent promotion delegations for support industry investment to Japan, and signed a memorandum on cooperation with the city of Kawasaki and many agreements with Japanese agencies and organizations.

Mr Dang Minh Thong, Deputy Director of the Department of Planning and Investment, said that based on the advantages of geographic location, natural conditions, economic potential as well as socio-economic achievements in recent years, for the period 2011-2015 and toward 2020, Ba Ria - Vung Tau aimed to become an industrial province and modernized port. To realize this, Ba Ria - Vung Tau has focused on developing and attracting investment in the support industry and logistics services, concentrating on Japanese investment.

 

To ease the concerns of Japanese investors about troublesome administrative procedures and support for investors, the province has established its own Board of support industry development headed by Mr Ho Van Nien, Vice Chairman of the Provincial People’s Committee (PPC); at the same time establishing a common procedure for support industry investment, setting time limits for each stage. Accordingly, the paper work will be no more than 20 days, depending on each specific work. All administrative units related to supporting industries investment procedures must abide by this regulation. Investors will contact, file and receive results in “one-door offices” of industrial parks or industrial complexes focused on the support industry. These offices have the duty of approaching, guiding and conducting relevant procedures concerning requests of investors, then filing them at the focal point for administrative procedures.

 

In parallel with the establishment of a representative office under the management of the Department of Trade and Industry in Asian Entrepreneurs' Village in Kawasaki to promote support industry investment from Japanese businesses, Ba Ria - Vung Tau also introduced the website address http//:jp.baria-vungtau.gov.vn to provide up-to-date information about the province. The website is registered with Japanese domain name and is connected to the website of Ba Ria - Vung Tau province and Kawasaki city. Also, with permission from the PPC, the provincial Department of Industry and Trade has sent people to join the special team established by JICA to promote potential, policies, investment environment and preferences of supporting industries investment in Ba Ria - Vung Tau to Japanese businesses.

 

According to Mr Thong, the development of the support industry is indispensable to the growth of Ba Ria - Vung Tau industry generally, and attracting Japanese businesses in this field is very important. Ba Ria - Vung Tau launched the construction of the intensive industrial zone in construction mechanics in Phu My III Industrial Park for small and medium enterprises of Japan. This will be a complete industrial park with services of manufacturing ground, social utilities and investor support, to meet the needs of Japanese investors in the province. On January 7th 2014, the Office of the Government issued Official Document 109/VPCP-QHQT selecting Phu My III Industrial Park as Vietnam - Japan Intensive Industrial Park. Also, following the memorandum signed between Ba Ria - Vung Tau and Kawasaki (Japan), the PPC has assigned Dong A Chau Duc Joint Stock Company to be the lead investor in Da Bac 1 Industrial Complex, coordinating with Japanese consultants to build Kawasaki - Ba Ria - Vung Tau Industrial Complex to attract businesses from Kawasaki.

 

Along with the establishment of intensive industrial zones to attract support industry investment, Ba Ria - Vung Tau also enhanced the training of human resources to help provide Japanese investors with sufficient labourers. Specifically, the province approved and has been implementing training schemes for 1,000 employees in the support industry in a 3-year period from 2012 to 2015. The training curriculum contains Japanese language and Japanese culture, and is 18 months long for each course. In 2012, 300 employees completed training, another 300 in 2013 and in 2014 it’s projected to be 400 employees.

 

It can be seen that alongside the provincial government’s efforts, the traffic between Ho Chi Minh City to Ba Ria - Vung Tau is currently the best compared with other South-eastern localities. This brings another unique advantage for Ba Ria - Vung Tau to be competitive in attracting Japanese investment.