HCM CITY (Biz Hub)— Japan remains the biggest investor in Viet Nam with its share of investment rising sharply in recent years, according to the Ministry of Planning and Investment.

"In 2012 Japanese investment represented 50 per cent of the total investment the country attracted," Nguyen Ba Cuong, deputy head of the Foreign Investment Agency, told Sai Gon Giai Phong (the Liberated Sai Gon) newspaper.

The newspaper quoted him as saying that as of June Japanese investors had sunk US$32.6 billion in 1,990 projects in the country.

HCM City is one of leading provinces and cities in attracting Japanese investment.

A spokesperson for the HCM City Export Processing and Industrial Zones Authority (HEPZA) said most of the Japanese projects in industrial zones are doing well, and many had expanded following a period of operation.

The city's neighbouring province of Dong Nai has also attracted many investors from that country.

In the first half of this year, it issued licenses for 20 Japanese projects with a total investment of more than $183 million, which accounted for 54 per cent of the total foreign investment.

Clothing is made by workers at the Japan-invested Toyotsu Vehitecs Viet Nam in the southern province of Binh Duong. — VNA/VNS Photo Quach Lam

Analysts expect Japanese investment to continue to grow, especially with Prime Minister Nguyen Tan Dung signing a decision to approve Viet Nam's industrialisation strategy within the framework of Viet Nam – Japan co-operation.

Also under the decision, Viet Nam will focus on six priority industries — electronics, agricultural machinery, agricultural and fisheries processing, shipbuilding, environment and energy saving, and automobiles and auto spare parts – to make them internationally competitive and bring high value addition.

They will play a leading role in attracting domestic and foreign investment, especially Japanese, and creating technology and skilled workers for the economy in general.

To further attract Japanese investors, the ministry said it would offer incentives and provide support to help them operate successfully.

HEPZA said it would solicit investment in the machinery and electronics industries and plans to carve out a Viet Nam – Japan Industrial Area in the Hiep Phuoc Industrial Zone in HCM City.

It will also organise trade promotion events in Japan to attract investors. — VNS