Japanese investment in HCM City continues to rise (VOV) - HCM City has experienced a spike of 226.1% in foreign direct investment (FDI) in the first two months of the year, primarily attributable to a high influx of Japanese businesses swarming into the city. The Municipal Department of Planning and Investment says Japanese businesses are keen on investing in Vietnam, especially the southern key economic zone as established companies are adding capital and new projects are registering capital at an impressively high rate. In line with this information, a report from the HCM City Export Processing and Industrial Zone Authority (Hepza), a series of Japan’s projects spearheaded the expansion into the city in 2013. For example, Sai Gon Precision Co, LTd in Linh Trung IP, Tosok Co, Ltd, Nidec Tosok, Akiba Co, LTd and Juki Co, Ltd have increased their capital to US$129 million, US$95 million, US$10 million and US$12 million, respectively. Notably, many other hi-tech international companies expanded their investment in Hepza including Roeders Vietnam from Germany, Marvel Vietnam Technology from Singapore and Kijima Musen Vietnam from Japan. Last year, total investment in Hepza IPs peaked at US$608 million, up 47% over the previous year. In 2014, investment in Hepza is expected to cap out at US$550 million, up 10% compared to the 2013 plan. According to the 2013 Japan External Trade Organization (JETRO) survey on Japanese companies in Asia and Oceania, 70% out of 435 Japanese businesses currently investing in Vietnam have plans to expand operations in the country.  Over 50% of Japanese businesses listed Vietnam’s scale of market, growth capacity and political stability in Vietnam as advantages. In 2013, Japanese investment in Vietnam increased from US$2.57 billion to US$2.78 billion. The survey showed that the Republic of Korea (RoK) took the lead in terms of project numbers in Vietnam, but Japan continued to top in total investment with newly registered capital of US$5.74 billion, followed by Singapore, the RoK, China, Russia, Hong Kong and Taiwan. Hepza attributed strong FDI inflows in its EPZs and IPs in the early months of the year to the fact that investors are gearing up for the signing of the Trans-Pacific Partnership (TPP) agreement. In addition, HCM City’s investment environment has been steadily improving, resulting in a relocation of many FDI projects from other provinces to the city. To entice increased investment capital in 2014, Hepza said that EPZs and IPs have set aside 408 hectares of land and 67,400 square metres of workshop areas for investors in IPs such as Tan Phu Trung, Dong Nam, An Ha, and Hiep Phuoc, and Tan Thuan EPZ. The Vietnam-Japan Techno Park in Hiep Phuoc IP has been underway to attract investment from Japan’s small and medium-sized enterprises in the field of hi-tech support industry. Last but not least, it is incumbent to streamline procedures of granting investment licenses, and conduct transparent and publicized administrative formalities, improve infrastructure facilities, and promote investment in the green and hi-tech industry. VOV