VietNamNet Bridge – Japan's Shin-Etsu Chemical Co will set up two companies specialising in manufacturing silicone-based materials for high-brightness LED lights, and refining rare earth minerals, with a total investment of 5 billion JPY (roughly 64 million USD).

In its press release, the largest chemical producer of Japan said Shin-Etsu Magnetic Materials Vietnam Co., Ltd. will separate and refine rare earth minerals used in electronics production, at a complex to be built on 80,000 sq.m. at Dinh Vu Industrial Park in the northern port city of Hai Phong .

The 2 billion JPY plant, which is expected to process 1,000 tonnes of rare earth minerals annually, will be Shin-Etsu’s first such facility outside Japan and is slated to come onstream in February, 2013.

The Vietnamese operation is likely to help reduce the company’s reliance on China for raw materials.

Meanwhile, Shin-Etsu Electronics Materials Vietnam Co., Ltd. will manufacture silicone-based materials for high-brightness LED lights at a facility to be built on 50,000 sq.m. at Thang Long 2 Industrial Park in the northern province of Hung Yen, at a total cost of 3 billion JPY.

* RoK investors score highly in local market

Ranked first among countries and territories investing in Vietnam, the Republic of Korea (RoK) has also gained the confidence of Vietnamese market over the two past decades thanks to its leading brand names of Daewoo, Huyndai, LG, Samsung, with more than 3,000 valid projects worth US$23.65 billion.

Vietnam's most attractive sectors for RoK investors are processing industries, manufacturing real estate, construction and transport. They focus on the most dynamic economic areas of Hanoi, Ba Ria – Vung Tau province, Ho Chi Minh City and Dong Nai province.

The RoK investors have made efforts to improve living standard and working conditions for employees, as well as protect the environment and develop community facilities.

In October 2011, the Ministry of Investment and Planning of Vietnam cooperated with the RoK's Ministry of Knowledge Economy to hold the first corporate social responsibility award ceremony for RoK investors in Vietnam. Individuals and businesses were honoured, including leaders of Auntex, Nano Tech Company; and the companies Chang Shin Vietnam, Doosan Vina, Posco E&C, and Hansoll Vina.

Director General of the Hanoi-based Korean Trade and Investment Promotion Agency Sun Seog Ki said the awards brought great encouragement for all Korean investors, motivating them to promote social activities in future.

Despite the context of economic difficulties, Korean investors enthusiastically maintain their business in Vietnam.

VietNamNet/Vietnam Plus