Speaking at the ceremony, Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc asserted the special relationship between Vietnam and Japan, and how the cooperation agreement with Mie prefecture will deepen the relationship between the two countries.

"The MPI has signed this MoU with 13 localities in Japan. We greatly appreciate the potential and advantages of Mie prefecture in supporting industries. Mie ranks first in Japan for the manufacturing of components, electronic equipment, electronic circuits, and numerous large companies in the semiconductor industry, which are also key sectors in Vietnam's recent development strategy," said Bich Ngoc.

Two weeks ago, the government issued a decree on the establishment, management, and use of an investment support fund, which will grant up to half of the initial investment costs needed for semiconductor and AI research and development (R&D) projects, as well as support high-tech companies, firms with high-tech products, businesses with high-tech applications, and those with R&D centre investments.

Ichimi Katsuyuki, Governor of Mie prefecture, expressed his admiration for Vietnam's dynamic development and confirmed the potential for cooperation between the two countries.

"Mie prefecture is renowned for the processing, manufacturing, and semiconductor industries, especially the electronics industry, with 19 consecutive years of being at the top in Japan. We are one of five prefectures in Japan designated for the development of the semiconductor industry," Katsuyuki said.

In a recent survey of over 4,000 firms in the prefecture, Vietnam is the most favourite destination. Numerous businesses hoped that the signing of this MoU would contribute to strengthening cooperation and investment of both sides.

According to MPI's Foreign Investment Agency, by the end of 2024, companies from Mie prefecture had implemented 41 projects with a total registered capital of about $580 million, of which, 21 projects are in the processing and manufacturing industry. Ho Chi Minh City and Hanoi are two favourite destinations with 13 and nine projects, respectively.

Investment from Mie prefecture is still modest compared to the total registered capital of $77.7 billion covering 5,490 projects from Japan to Vietnam. Japan is the third-largest investor among 147 countries and territories investing in Vietnam.

Source: Vietnam Investment Review