(VOVworld) – Japan has remained Vietnam’s biggest foreign direct investors in terms of the number of projects and total registered capital. Many Japanese projects have been considered suitable to Vietnam’s plans for FDI attraction. But Vietnam needs to boost its economic restructuring, create more opportunities for people to invest more money into the country and to expand FDI projects.

Vietnam Japan Economic Summit 2013: In 2011, Japan’s FDI accounted for 25% of the total FDI in Vietnam. But by 2012, the figure doubled (Photo: thoibaonganhang.vn)

The resolution of pending difficulties to continue attracting Japan’s FDI projects topped the agenda of a recent dialogue on Vietnam’s economic restructuring and opportunities to increase FDI from Japan. Statistics from the meeting show that by last month, Japan remained Vietnam’s leading investor, with more than 2,000 projects and a total registered capital of 33 billion USD. Japan’s FDI is mainly directed at small- and medium-sized enterprises nationwide. Phan Huu Thang, an expert from the foreign investment department of the Ministry of Planning and Investment, has this to say:

“A majority of Japanese investors are investing in high technology and manufacturing. This trend is matching Vietnam’s investment plan, which is to improve the quality of FDI flow into our country.”

As of August, newly registered and additional FDI capital by Japanese investors reached 4.35 billion USD, of the country’s total FDI capital of 12.6 billion USD. The central province of Thanh Hoa topped the list of FDI attraction thanks to the Nghi Son refinery-petrochemical project which attracted 2.8 billion USD. To date, projects relating to the processing, manufacturing and high-tech industries have made up 86% of Japan’s total registered FDI in Vietnam. Vu Tien Loc, Director of the Vietnam Chamber of Commerce and Industry, says:

“We’re encouraging investment in production, especially in industry and high-technology which is in pursuance to the Vietnamese government’s policy and development orientation.”

But to further attract foreign investors, including those from Japan, Vietnam needs to improve its investment environment and focus on highly-qualified personnel training and upgrading the infrastructure. Minister of Planning and Investment Bui Quang Vinh underlines the government’s direction.

“To attract more foreign investment, Vietnam must change its economic structure towards more competitiveness-based growth, by using management standards, labor productivity, and the application of science and technology to make its products more competitive. Vietnam will also intensify the training of qualified human resources and improve the infrastructure.”

At the dialogue, which was part of the Vietnam Japan Economic Summit in Hanoi, Daisuke Hiratsuka, Executive Vice President of the Japan External Trade Organization, said within the year from last April, up to 6,800 investors had asked JETRO Hanoi’s consultancy to invest in Vietnam. In Ho Chi Minh City, 5,700 investors did the same. The figures illustrate that Japanese investors really are interested in Vietnam.