3 cooperation highlights of Japanese enterprises investment in Foshan
Foshan has a long tradition and good foundation in cooperating with Japan. Early in 1985, Foshan has become the sister city of Itami, Japan. Over the years, Foshan has conducted all-round exchanges and cooperation with Japan in economy, trade, science and technology, society, culture, education, sports, health, talents and other fields. In the first half of 2020, the actual foreign investment from Japan in Foshan reached 221 million yuan, with a year-on-year increase of 144.6%. The total import and export value reached 12.87 billion yuan, with a year-on-year growth of 14.8%, which far exceeded Foshans overall level.
Projects with numerous quantity and excellent quality
Since the first Japanese enterprise settled in Foshan in 1994, Foshan has introduced over 200 direct investment projects from Japan, involving a total investment of more than 3.6 billion US dollars. At present, 22 Japanese-funded World Top 500 enterprises including Toyota, Honda and Panasonic have set up 55 projects in Foshan, with a total investment of over 2 billion US dollars.
Strong industrial agglomeration
The agglomeration features of Japanese investment in Foshan are also obvious. In 2000, Honda settled in Nanhai, Foshan, becoming the first Japanese-funded World Top 500 enterprise in auto parts industry to invest in Foshan. In 2005, Honda re-invested and set up Honda Auto Parts Manufacturing Co., Ltd.. After years of development, it has become the largest foreign-funded auto parts enterprise in Foshan, with an investment of 200 million US dollars. Last year, the number of vehicles delivered to the original equipment manufacturer (OEM) was 1.459 million, with a production value of over 15 billion yuan.
With the settlement of Honda project, increasing Japanese enterprises in related industries have invested in Foshan, including leading industrial enterprises such as Denso, Aisin Seiki and AGC, as well as some medium and small-scale Japanese enterprises with core technologies.
Obvious trend of capital increase and production expansion
An outstanding feature of Foshans foreign investment structure is the large amount proportion of capital increase, which fully shows that foreign-funded enterprises are willing to deeply develop in Foshan, constantly solidify their investment foundation, and expand the market.
In April, 2019, Toray Co., Ltd. from Japan, the largest non-woven manufacturer in Asia, decided to set up Toray Membrane Science and Technology (Foshan) Co., Ltd. in Foshan. It was the second project of Torays settlement in Nanhai, Foshan after the spun-bonded non-woven project in 2017. Torays re-choice of Foshan was not a simple horizontal expansion, but to enrich the product format and strengthen the stability of the industrial chain.
(Annie)