Danang city looks to attract more FDI from Japan

Vietnam’s central city of Danang is aiming to attract more direct investment from Japan, while many Japanese firms are looking to expand their operations in the country's central region.

V-Stainless Steel Co., Ltd. has proposed the construction of a logistics facility in Danang. CEO Tanaka Kuninao said the firm now operates factories and warehouses in the southern province of Dong Nai and the northern province of Hung Yen, and it takes three-four days to deliver goods between the two facilities.

"A facility in Danang would help boost transportation and serve customers in the central region," he told a conference on Danang-Japan cooperation on Friday.

Kangaroo, a local home appliance firm, said Danang, with its economic potential and tourism sector, could develop into the best destination in central Vietnam for Japanese investors.

“Danang not only provides a dynamic investment environment but also offers opportunities for Japanese firms to approach the lucrative Vietnamese market," a company representative said at the event.

Japanese firms have invested in 222 projects in Danang, with total registered capital of over $1 billion, accounting for 23.5% of foreign-invested projects in the city and 26% of the capital, official data shows.

The projects focus on manufacturing of components and equipment, information technology, education, healthcare, services, and tourism, according to Danang's Vice Chairman Ho Ky Minh.

Japanese consul general to Danang Yakabe Yoshinori said: "Vietnam is a top destination for investment from Japanese firms. The country's central region, particularly Danang, is a hotspot thanks to the city’s competitive leasing prices at industrial parks, good investment environment, and strong workforce."

The FDI sector disbursed VND1.69 trillion ($71.5 million) in Danang in the first six months of this year, down 40.2% year-on-year, according to the municipal statistics office.

In the period, the city attracted $26.21 million of registered FDI, including $9.5 million in 62 newly-registered projects, $2.77 million of capital contribution for stake acquisitions, and $13.94 million of additional capital for ongoing projects.