Ba Ria-Vung Tau lacks facilities for Japanese investors

HCMC – Ba Ria-Vung Tau Province has yet to build up infrastructure and preferential policy to prepare for the investment wave from Japanese small and medium enterprises into the province’s supporting industries in the coming time.

Speaking to the Daily on Tuesday, director Tran Thi Huong of Ba Ria-Vung Tau’s industry and trade department admitted the province had difficulties in building preferential policies and developing infrastructure of a particular industrial zone to welcome Japanese investors.

Since late 2011, the province has welcomed several business missions from Japan, said Huong. It is expected that two more Japanese missions including some 50 enterprises will come to study the investment environment in mechanics and electronics this February.

The province hoped to complete infrastructure development by the end of 2012 to satisfy the needs of investors.

“Most Japanese businesses come and seek ready-built workshops to promptly start production, meaning the province must have available premises to lease out to them, but now infrastructure is not ready due to the confusion about how to properly develop infrastructure to meet their requirements,” said Huong.

Also, Ba Ria-Vung Tau has not created preferential policies to attract investors. The province cannot go against the central general policies, while unable to compete further with other localities, she stressed. Tax exemption and reduction have not been clarified.

“Within this week, the department will submit to the provincial government a draft scheme on establishment of an intensive engineering industrial zone for Japanese investors. Location and expenditures for this industrial zone are under consideration,” Huong said.

Most Japanese businesses that show interest in the province are small and medium-sized, with some of them employing less than 50 laborers, but applying advanced machinery and production technology to create high value-added products, components and machine parts.