The Nikkei Asia Review has just announced that Tokyo-based Sumitomo Corporation is seeking to “invite” Japanese manufacturers to its dedicated “leasing area” in Thang Long Industrial Park, Vinh Phuc and Thang Long II, Hung Yen.
Sumitomo expects to promote the leasing of factories it owns in Vietnam’s industrial parks. Sumitomo targets small- and medium-sized manufacturers and leverages deals with local governments in their respective countries.
The Nikkei Asia Review also said that Sumitomo has been working with local businesses in Kanagawa, Hyogo and Osaka counties.
This is a promotion aimed at calling for manufacturers to set up low cost initial investment in industrial zones in neighboring Hanoi such as Thang Long Industrial Park and Thang Long Industrial Park II.
Thang Long Industrial Park and Thang Long II have about 50,000 sqm of leased space, providing buildings and infrastructure for production as a service package to assist tenants to set up their production lines and start operating fast.
Here, Japanese companies can set up operations in Vietnam with minimum initial investment.
There are currently about 10 companies using this service from Suminoto. It is known that the lease contract has a minimum term of 3 years. According to Suminoto, this helps businesses to be flexible in their investments and can minimize losses if they decide to stop working.
However, the Nikkei Asia Review reported that in the past three years, none of the above-mentioned 10 companies has ceased operations.
The reason is “low-cost local labor and hard work,” said Nikkei Asia quoted by Taro Kawachi of Sumitomo’s overseas industrial business.
The local government support offices in Japan play an important role in introducing manufacturers who want to launch operations in Vietnam for Sumitomo.
In early 2018, Sumitomo signed a contract with the Osaka provincial government, whereby part of the Thang Long II Industrial Park was designated as an area for companies from Osaka.
Sumitomo has even assisted cost enterprises to set up companies in Vietnam for manufacturers from Osaka Prefecture.
According to Tapchicongthuong.vn