Large Japanese businesses seek to scale up production in Vietnam01/06/2023
Sojitz CEO Fujimoto Masayoshi said on May 19 at a meeting with Vietnamese Prime Minister Pham Minh Chinh that many large Japanese corporations want to expand or relocate production to Vietnam.
Sojitz now has about 350 subsidiaries and 140 joint ventures with 20,000 employees all over the world.
In Vietnam, the group has 17 joint ventures with total revenue of $1 billion, operating in many different fields, including equipment manufacturing (ITC, power plants, motorbike parts), energy, chemicals, Industrial Zones and agriculture-forestry, and paper production, BOT projects Phu My III and Vietnam-Japan fertilizer.
Emphasizing Sojitz’s strong commitments on long term investment in Vietnam, Fujimoto Masayoshi spoke about expanding investment in the fields of Industrial Zones and renewables, and discussed problems during the investment procedure process.
He made proposals related to the direct power purchase mechanism and renewable development.
Noting that many Japanese corporations are considering scaling up production in Vietnam or relocating production to Vietnam, Masayoshi said about 70 enterprises have heard about the possibility of Sojitz opening more IZs in the country.
Chinh praised Sojitz’s investments in Vietnam and applauded the corporation’s investment expansion in IZs, the business field in which Japan has experience and advantages.
Chinh said the government of Vietnam has released the eighth National Power Development Plan (PDP 8) which prioritizes the development of renewables.
It is also planning to build a mechanism for direct electricity purchase and sale contracts between renewable energy power producers and consumers in sync with the amendment of the Electricity Law and the roadmap for the implementation of a competitive electricity market.
The PM asked Sojitz to continue to develop the IZ ecosystem, and act as a bridge bringing enterprises capable in capital, technology and business administration to Vietnam, thus helping Vietnam join more deeply in the global supply chain.
The head of the government of Vietnam hopes Sojitz will expand its business in Vietnam and contribute more to socio-economic development, especially in IZs and renewable development.
Chinh asked Sojitz to cooperate with the Ministry of Planning and Investment of Vietnam (MPI) and local authorities to settle problems during the implementation phase of investment, creating favorable conditions for Vietnam’s enterprises, especially SMEs, to join the group’s supply chain.
On the same day, Chinh also received leaders and representatives of the Hiroshima – Vietnam Peace and Friendship Association, the Hiroshima – Vietnam Association, and the Japan – Vietnam Friendship Association of Hiroshima.