Japanese Companies Eager to Invest in Kazakhstan
In Astana, with the assistance of the Embassy of the Republic of Kazakhstan in Japan and Kazakh Invest, the Kazakh-Japanese business forum, the 7th meeting of the Joint Commission for Government and Private Sector on Economic Cooperation was held. Within the framework of the forum, cooperation agreements were signed with a number of large Japanese companies.
At the opening of the forum, Deputy Minister for Investment and Development Arystan Kabikenov stressed that Japan is one of Kazakhstan's key strategic partners in East Asia. An Agreement on the Promotion and Mutual Protection of Investments has been in force since 2015.
“Since the first years of independence, Kazakhstan has relied on ensuring economic growth through the creation of favorable conditions for foreign investors. Japan is one of the largest investors in Kazakhstan. From 2005 to 2017, gross inflow of direct investments from Japan to Kazakhstan amounted to more than $5 billion,” Kabikenov said.
In turn, Vice-Minister for International Affairs of the Ministry of Economy, Trade and Industry of Japan Tadao Yanase stressed that Japanese companies are interested in investing in Kazakhstan.
Deputy Chairman of the Japan-Kazakhstan Economic Commission, adviser to ITOCHU Corporation, Toshiyuki Kosugi, said that their company has been importing industrial equipment, oilfield chemicals and fibers into Kazakhstan, but noted that the investment environment in Kazakhstan is undergoing significant changes.
“Now is the time to implement new initiatives in line with our development strategy,” he said. “Last year, the Government of the Republic of Kazakhstan adopted the program ‘Digital Kazakhstan,’ and I would like us to manage to form concrete bilateral relations in many directions in the near future.”
A number of agreements on cooperation were signed at the forum.
Chairman of the Kazakh Invest Board Saparbek Tuyakbaev and the Vice-Chairman of the Marubani Corporation, the fifth-largest Japanese trading company with leading market shares in cereal and paper pulp trading as well as a strong electrical and industrial plant business, Yamadzoe Shigeru, signed a Memorandum of Understanding and common cooperation on the development of urban transport in Almaty.
"At present, in Almaty, within the framework of the PPP scheme [public-private partnership], we are working on the implementation of a project to build a light rail system. In addition to solving the problems related to construction, operation, maintenance and financing, we are working to create a digital infrastructure, considering LRT as an integral part of urban planning, and thus striving to provide comfortable living conditions for our citizens,” Shigeru said.
In addition, a Memorandum of Understanding and Cooperation was signed for the implementation of a pilot project in heat and water supply systems between JSC KazCenter HUS, Mitsui & Co, and Japan system Planing. A Memorandum on Cooperation was also signed in nuclear energy between Kazakhstan Nuclear Power Plants and the Japan Atomic Power Company, Marubeni Utility Services.
As of May 1, 77 legal entities, branches and representative offices with Japanese participation were registered in Kazakhstan.
By Dimitri Dolaberidze