Japan’s plastics firm Riken opens 2nd plant in southern Vietnam

Riken Vietnam Co., Ltd. on Friday inaugurated its second plant in Vietnam in the southern province of Binh Duong after 10 years of operation in the country.

The $38 million facility covers 7.5 hectares in VSIP II-A Industrial Park.

It produces plastics with an annual capacity of 32,000 tons, which aligns with the province’s strategy to encourage supporting industries.

In December 2014, Riken Vietnam received an investment registration certificate for a $28 million plastics plant in Binh Duong, a manufacturing hub in the southern region.

Japan has invested in 357 projects worth $5.98 billion in Binh Duong, being the second largest investor among 65 countries and territories investing in the province.

The investments account for 8% in number of projects and 14% in value of cumulative foreign direct investment in the locality, according to data from the provincial Department of Planning and Investment unveiled at a dialogue between local authorities and Japanese businesses on Friday.

As of November 15, the province has attracted 4,372 FDI projects with a combined value of $42.11 billion.

At the event, Japanese corporate representatives hailed the province’s efforts to improve the investment climate, which has enabled many Japanese investors to expand operations.

They also asked for clarification and removal of hurdles regarding customs clearance, refund of value-added tax, work permits for foreign laborers, construction permits, investment incentives, among others.