Some major Japanese groups will build a large-scale industrial zone (IZ) in the south of Vietnam to attract more Japanese businesses to invest in the country, Nikkei newspaper announced on August 26.
The Sojitz Group, Daiwa House and Kobelco Eco-Solutions Company under the Kobe Steel Group will construct the Long Duc IZ on area 270ha in Long Thanh, Dong Nai province, at an estimated cost of $100 million.
The Long Duc IZ, which will include a data centre and a modern water treatment system, is scheduled to open in 2012, aiming to attract the investment of 100-150 businesses.
Japanese businesses have been accelerating the construction of their offices overseas and more and more businesses are choosing Vietnam as their location because of its cheap labour force.
According to the Japan External Trade Organsation (JETRO), total Japanese direct investment in Vietnam for the first half of this year reached $1.169 billion, 8.3 times higher than the same period last year.
The number of Japanese businesses that have become members of the Japanese Business Association in Vietnam has increased from 327 in 2000 to more than 950 today.