The relationship between Viet Nam and Japan has been developing well and earning remarkable achievements, creating the most favourable conditions for Da Nang to continue to proactively and actively strengthen cooperation with Japanese localities and enterprises in the years to come.

The Viet Nam - Japan Festival 2024 in Da Nang leaves a good impression on local people and tourists as well as makes a splash in the Japanese business community. Photo: T.P

Multifaceted ties between Da Nang and Japanese localities

According to Deputy Director General in charge of the Northeast Asia Department under the Ministry of Foreign Affairs Lam Thi Thanh Phuong, the upgrade of the Viet Nam - Japan relationship to a Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World in 2023 marks a significant milestone that opens a new chapter for the Viet Nam-Japan relations, especially cooperation ties at the local level, to be more practical, comprehensive, effective, connected and mutually beneficial.

In particular, Da Nang is one of the localities that are actively cooperating with Japanese localities and enterprises. Currently, Japan is the city’s top foreign investor.

Many large Japanese companies and corporations have invested in the city such as Honda, Mikazuki, and Murata Manufacturing. These projects have been contributing to promoting the local socio-economic development.

Japanese enterprises have highly lauded the municipal government for their active support for their investment and cooperation activities in the city. “With its great potential, outstanding strengths, high trust, and close ties with Japanese localities and partners, Da Nang will continue to expand cooperation with other Japanese localities in new spheres” Ms. Phuong expressed her belief.

According to Japanese Ambassador to Viet Nam Ito Naoki, the relationship between Viet Nam and Japan is currently at the finest development stage in such aspects as economy, security, culture and people-to-people exchange.

He affirmed Da Nang is Japan’s important partner in many fields, including trade, investment and tourism in the central region. The year 2024 marked the beginning of the journey towards the next 50 years of the Japan-Viet Nam Comprehensive Strategic Partnership. Therefore, the Japanese diplomat voiced his hope that the two sides will concretise extensive cooperation activities in many aspects in the coming time.

Ambassador Ito Naoki said that Japanese enterprises have recently channeled new investments into the hi-tech and information technology sectors in Da Nang. For instance, the Pasona Corporation has established the Pasona DX Hub Da Nang specialising in training artificial intelligence (AI) engineers. The Rorze Corporation, a global player in the semiconductor industry, plans to expand its investment in Da Nang with a total capital of 15 billion yen.

"I believe that these projects will greatly contribute to helping Da Nang realise its goal of becoming a hi-tech connection centre in Southeast Asia," Mr. Ito Naoki said.

Da Nang remains attractive for Japanese investors

Japanese firms considered Viet Nam as the second most attractive and potential investment destination, according to a survey on foreign direct investment in Viet Nam in fiscal year 2023 conducted by the Japan External Trade Organisation (JETRO). Accordingly, 57% of Japanese companies wanted to continue expanding business in Viet Nam.

Chief Representative of JETRO Takeo Nakajima informed that Japanese investors and enterprises have been showing their keen interest in investing in Da Nang in the spheres of hi-tech, information technology, microchips, semiconductors, and AI. He, therefore, underlined a must-do for Da Nang to continue to boost administrative reform to shorten the time taken to handle procedures related to granting investment licences; as well as train human resources with high expertise and skills in hi-tech and information technology fields to meet the needs of Japanese enterprises when investing in the city.

A representative of Japan’s TMI Company shared that Da Nang was one of the top investment destinations for Japanese companies that intend to expand their investment in Viet Nam due to good business environment, and many preferential policies, especially incentives on land and factory rental costs in industrial parks. Additionally, the municipal government always supports and offers the best possible facilitation to Japanese businesses.

Moreover, the central coastal city has many facilities for training quality human resources in hi-tech and information technology. Therefore, Japanese companies and enterprises are completely assured about the human resources in the city.

“Da Nang is not only a worth-investing but also worth-living city”, a representative of TMI Company expressed.

In his remarks at the recent “Da Nang - Japan Meeting” 2024, Vice Chairman of the municipal People's Committee Tran Chi Cuong highlighted the significance of the event in attracting investment in the fields of hi-tech industry, digital technology, green technology, information technology, electronics, microchips and semiconductor; as well as enhancing human resource cooperation between Da Nang and Japanese partners.

The development of the semiconductor and AI industries, which are among the five breakthrough industry groups, greatly contributed to creating momentum for the city’s rapid and sustainable development, he affirmed.

According to the Vice Chairman Cuong, Da Nang is now focusing on developing the aforementioned industries in many aspects.

Specifically, in terms of human resources, the city sets a target of training at least 5,000 engineers in the fields by 2030. In terms of infrastructure, the city has put into operation the High-Tech Park, and Software Park No. 1. Meanwhile, the construction of the Software Park No. 2 is underway.

In terms of mechanisms, the city has already issued many preferential policies related to land rent, and infrastructure usage costs, etc. In particular, the National Assembly of Viet Nam has allowed the city to issue special policies for strategic investors. This is the premise for Da Nang to soon become one of the localities with the most favourable investment environment for domestic and foreign investors.

Reporting by THANH PHUONG - Translating by M.DUNG