Japan Helps Vietnam Province Improve Investment Environment

The Japan International Cooperation Agency (JICA) and Vietnam’s northern province of Vinh Phuc has kicked off the construction of a backbone road in the Me Linh new urban township. The 15-km road is one of the five components of a project to improve the investment environment in Vinh Phuc province that will be completed by July 2014, state media reported. Other components of the project include the expansion of a running water supply system; sewerage and wastewater treatment facilities; power supply systems in the province and investment promotion support system. The Japanese government provides around $151.5 million in official development assistance (ODA) for the project. Chairman of the provincial People’s Committee Phung Quang Hung said that developing infrastructure to meet growing demand of foreign investors has become one of the province’s top priorities. Once the project completed, it will help Vinh Phuc solve our current shortcomings such as power shortage, insufficient clean water, outdated waste water treatment and water drainage facilities which are essential for every investor, he said. Vinh Phuc, 60 km north of Hanoi, is home to many big economic groups such as Japan’s Honda and Toyota, Italy’s Piaggio, Taiwan’s Foxconn, Compal and Fullpower, South Korea’s G.O. Max, Kumho and Lotte and Singapore’s YCH and CPK Group. The province which now has 20 industrial parks (IPs) covering 6,038 hectares, including seven operational IPs aims to attract $370 million in investment with $300 million expected to come from 25 foreign-invested projects by 2015. (Kinh te Vietnam & The gioi –Vietnam & World Economy Oct 18 p7, Quan doi Nhan dan – People’s Army Oct 18 p8, Lao dong - Labor Oct 18 p3)