Japan's Kanagawa prefecture eyes deeper economic ties with HCM City

Jointly organised by the Kanagawa prefecture administration and the Ho Chi Minh City People’s Committee, the seminar aimed to promote investment ties between the two localities.

Speaking at the event, Vo Van Hoan, vice chairman of the municipal People’s Committee, emphasised that Japan is not only a key economic partner for Vietnam but also a strategic investor in HCM City, with close to 1,800 projects and a total investment of nearly US$6 billion. This reflects the substantial contributions Japanese businesses have made to the city’s socio-economic development, he noted.

Hoan highlighted Kanagawa’s proximity to Tokyo and its modern investment ecosystem, making it an ideal destination with ample opportunities for businesses from HCM City and Vietnam to pursue sustainable growth.

Japanese Consul General in HCM City Ono Masuo pointed out that to enhance ties with Vietnam, Kanagawa has hosted the Vietnam Festa in Kanagawa since 2015, launched the Kanagawa Festival in Vietnam since. For the first time this year, the countries organised a Kanagawa Investment Seminar in HCM City, to deepen future economic relations between the two localities. With Vietnam as the third most populous nation in the Association of Southeast Asian Nations (ASEAN), its market presents vast potential, making it highly appealing to foreign investors, including those from Japan.

Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organisation (JETRO) in HCM City, noted that Japan’s annual business investment surveys rank Vietnam as the second most attractive investment destination, after the US.

He added that Japanese businesses view Vietnam as having the most favourable investment environment in ASEAN. Additionally, more Vietnamese companies are expanding their investments in Japan, achieving noteworthy success. Thus, Japan hopes to continue building a balanced, sustainable partnership between the two sides in the future, he said.

Presenting an overview of the local investment environment, Kanagawa Governor Kuroiwa Yuji highlighted Kanagawa as one of Japan’s economically dynamic prefectures, featuring a well-connected transportation network throughout the country. The prefecture also serves as an international gateway, connecting Japan to Asia and the world through key international commercial ports like Yokohama, Kawasaki, and Yokosuka, as well as Haneda Airport.

To attract more companies to start up and expand investments, the Kanagawa government has rolled out business support programmes, including facilitating company formation, offering financial support for land, buildings, and equipment, and providing tax reductions on real estate purchases.

Kanagawa is currently prioritising support for industries that contribute to local development, such as food and beverages and general and commercial machinery, he said, adding that this offers Vietnamese businesses, particularly those from HCM City, an opportunity to expand cooperation and investment.