Japanese firms boost investment in precision mechanics (Illustrative image. Source VNA)Hanoi (VNA) – Japanese businesseshave been working with Vietnamese partners in technology transfer and equipmentmanufacturing, as well as increasing investments in precision mechanics.
TakimotoKoji, chief representative of the Japan External Trade Organisation’s (JETRO) HCMCity office, said with its stable economic development, Vietnam is recording anincreasing inflow of Japanese investment from China.
In September 2017, Nakano Precision beganthe construction of its factory at the Tan Binh Industrial Park in Ho Chi MinhCity. The Japanese company is planning to invest in another branch in Da Nangcity.
Earlier this year, Japanese-invested SankoMetal Vietnam injected some 2 million USD into the second phase of its plantmanufacturing sunshade louvers at Nhon Trach 3 Industrial Park. The plant hopesto generate 40 tonnes of metal louvers and 110 tonnes of other metal productsper year.
At the International Precision Engineering,Machine Tools and Metalwork Exhibition (MTA) last year, 12 Japanese firms inkedcontracts with their Vietnamese partners.
According to Koji, 24 Japanese companiesparticipated in this year’s edition, 11 of them for the first time.
They brought labour-saving components andequipment; worker protection equipment and materials, such as press loadmonitoring devices, safety valves, and rust removers that are safe for humancontact; and devices and inspection tools that can help increase local content,he said.
Osamu Hata, manager of the Sales Departmentat NMC Co Ltd, which supplies rust removal and prevention solutions, said thecompany is seeking partners for product distribution in Vietnam.
Meanwhile, Seiji Ushiyama of the overseassales division at Shinko Denshi Co., Ltd, which provides solutions toindustries requiring high-accuracy weighing and measurement, said his companywants to find new customers and an agent in the north.
JETRO’s latest survey showed that the localisationrate of Vietnamese firms was 33.2 percent in 2017, relatively low compared toChina at 68 percent and Thailand at 57.1 percent.
The localisation rate plays an importantrole in the efficiency of Vietnam’s manufacturing sector, Koji noted.
Japan’s foreign investment into Vietnam hasenjoyed steady growth over the years. In 2017, Japan topped the list ofcountries and territories investing in Vietnam with 9.11 billion USD,accounting for 25.4 percent of total capital.
In the first six months ofthis year, Japan also overcame 86 countries and territories to become thelargest foreign investor in Vietnam, with 6.47 billion USD, or 31.8 percent ofthe total registered capital. -VNA
VNA
