Since the start of this year, many Japanese businesses operating in Da Nang have seen reasonable growth in their production activities given the current context of global economic difficulties.

In particular, many Japanese enterprises in the city’s industrial parks (IPs) and hi-tech zones are focussing on support industries to which the city has paid special attention.

A representative from the Kanzaki Company, which specialises in manufacturing metal components in the Hoa Khanh IP, said that Viet Nam now faces a serious shortage of industrial support products.  For this reason, many Japanese businesses which produce assembly components have found it very difficult to invest in the country.  In recent months, Da Nang’s authorities have granted business licences to some Japanese investors to operate in the city.

Some of the Kamui Company’s industrial support products on display

Japan’s Kamui Company opened its heat-exchange equipment manufacturing plant in the Hoa Khanh IP last month.  Covering an area of 11,092m², the 9 million USD plant will produce 2,610 units per year once it is fully operational.  In addition, work is under way at the city’s Hi-tech Park on a 40 million USD electro-magnetic switch valve manufacturing plant for the Tokyo Keiki Precision Technology Company, a subsidiary of Japan’s Tokyo Keiki Inc. 

According to the city’s Investment Promotion Centre, the local authorities have so far this year granted investment licences to 7 new Japanese projects, and an additional over 9.2 million USD of investment has been put into 7 existing Japanese projects.   Japan is the city’s second largest foreign investor after Singapore, with 78 projects worth over 370.5 million USD in total.  The city-based Japanese companies have created about 27,000 job opportunities for people from the city and neighbouring localities, and thousands of indirect jobs in the local support and raw material manufacturing industries.

The Chairman of the city’s chapter of the Japanese Enterprises’ Association, Mr Sakurai Hiroyuki, said that the city boasts a healthy investment environment.  He also remarked that Da Nang is Viet Nam’s third largest city, and it is willing to create even more favourable conditions for Japanese investors to operate effectively in the city.