Interview with The Mayor; Ataka New Industrial Park in Komatsu City, Ishikawa Prefecture. One of The Most Accessible Manufacturing Bases in Japan

Introduction

This report introduces the new “Ataka New Industrial Park” in Komatsu City, Ishikawa Prefecture, Japan. Komatsu City welcomes foreign companies to the Ataka New Industrial Park.

The Vietbiz editorial team was able to speak with Mayor Katsuei Miyahashi, the mayor of Komatsu City.

After first introducing basic information about Komatsu City itself, the interview continues with Mayor Miyahashi.

We hope that this report will help Japanese and Vietnamese companies to expand their business.

Introduction to Komatsu City

Komatsu City is located in Chubu Region of Japan.

This chapter presents basic information about Komatsu City.

Basic Information about Komatsu City

This section presents the population, area, geography, and climate of Komatsu City.

Population and Area

With a population of approximately 1.11 million and an area of 4,186㎢, Ishikawa Prefecture is very similar to Tay Ninh Province when compared to other provinces in Vietnam.

Komatsu itself has a population of approximately 110,000 and an area of approximately 371.1㎢.

Geography and Climate

Komatsu City is located in the northern part of central Japan, facing the Sea of Japan. To the east is Mt. Hakusan, one of the three most famous mountains in Japan, and the city is blessed with abundant nature.

The climate on the Sea of Japan side of Ishikawa Prefecture is cool, with relatively low sunshine rates. The average temperature in Komatsu City is 14.7°C, about 2°C lower than that of Tokyo. In Vietnam, the temperature in Komatsu City is similar to that of Sapa.

History

It is believed that people have lived in the place where Komatsu City is located for about 20,000 years. The name “Komatsu-shi” is said to have originated, according to one theory, from the fact that Emperor Hanayama (968~1008) visited the area during the Heian period in Japan and planted pine trees along the banks of the Ladagawa River, which he called “Sono-no-Komatsubara.

It was during the Edo period (1603-1867) that the foundation of Komatsu as a large town was laid. A military commander named Maeda Toshitsune lived in Komatsu Castle, and the area prospered as a castle town. Maeda Toshitsune also implemented a policy of promoting industrial development, and many craftsmen gathered in the castle area. This is the origin of Komatsu City as a manufacturing town, which will be discussed later.

In modern times, Komatsu was founded in 1921. Komatsu is a major Japanese manufacturer of construction and mining equipment and is a global company with the largest market share in Japan and the second largest market share in the world after Caterpillar Inc. in the United States.

Today, Komatsu City is not only home to Komatsu, but also to a number of related companies and factories that have developed manufacturing and heavy industry and shaped the city’s economy. In addition to manufacturing and heavy industry, Komatsu also has a thriving textile industry and traditional crafts such as Kutani ware, making it a true manufacturing town.

Thus, in Komatsu City, a manufacturing town with a long history, a new industrial park is being constructed that is suited to the businesses of the future. In the following sections, we will provide a comprehensive introduction to the “Ataka New Industrial Park,” which is the main topic of this report.

Overview of Ataka New Industrial Park

The Ataka New Industrial Park is a new industrial park adjacent to Komatsu Airport, scheduled for completion in 2024.

―Could you give us another overview of the Ataka New Industrial Park?

Mayor Miyahashi
We have several strengths and characteristics, but we believe that our greatest strength is our access to land, sea, and air. We are particularly confident that we are one of the best in Japan in this respect.

Location	Ataka Shinmachi, Komatsu City, Ishikawa Prefecture	selling price	Adjustment
Planned area	約32.1ha	Sub-joining possible area	Approx. 20 ha (planned)
用途地域	Industrial area (Building-to-land ratio: 60%, Floor-area ratio: 200%)	Height above sea level	Approx. 4m
Waterworks	Komatsu City water supply（3,000㎥/day）	Drainage system	Self-treatment (combined treatment septic tanks)
Storm drainage	Regulating reservoirs developed by companies moving into the area	Electric power	Hokuriku Electric Power Company (6kV, 22kV)
Access	Adjacent to Komatsu Airport, 4km from Komatsu IC, 4km from Komatsu Station, 20km from Kanazawa Port

Background Leading to The Development of The Industrial Park

ーCould you tell us about the background and purpose behind the development of this new industrial park in Ataka?

Mayor Miyahashi
In constructing the Ataka New Industrial Park, one of Komatsu City’s goals is to increase the permanent population. We believe that attracting both Japanese and foreign companies to Komatsu City will lead to an increase in the permanent population, which in turn will lead to an even more prosperous Komatsu City and better services for its residents.
Increasing the permanent population is not limited to Komatsu City, but is considered to be a major issue common to all regional cities in Japan. The Ataka New Industrial Park is one of Komatsu City’s proactive policies to increase the permanent population from the economic aspect of locating companies.

Strengths and Features of the Ataka New Industrial Park

Here, we asked Mayor Miyahashi again about the features and strengths of the Ataka New Industrial Park.

Excellent Access; Overland Route, Sea Route, and Air Route

One of the greatest strengths of the Ataka New Industrial Park is its very good land, sea, and air transportation access.

Air Route

―Could you provide details on air access to Ataka New Industrial Park?

Mayor Miyahashi
The Ataka New Industrial Park is adjacent to Komatsu Airport. Komatsu Airport is the busiest airport in Hokuriku, with approximately 10 round trips per day to and from Haneda Airport in Tokyo. Because Komatsu Airport is located in the center of the Japanese archipelago and the Sea of Japan, it has excellent access to the three major metropolitan areas of Kanto, Kansai, and Chukyo. On international flights, there are six round-trip arrivals and departures per week to and from Shanghai, China, which is one of the major advantages for manufacturing companies locating here.
The Ataka New Industrial Park has excellent access by land, sea, and air, but we believe that the air route is a particularly great advantage.

Sea Route

―How good are you about sea routes?

Mayor Miyahashi
With regard to sea transportation, the nearest port to the Ataka New Industrial Complex is Kanazawa Port, which is about 35 minutes away by car. It is mainly characterized by its regular shipping routes to and from Busan, Shanghai, and Dalian.
Kanazawa Port is particularly popular with South Korea, and the Busan transhipment provides access to all parts of the world. In addition, more than 250 ports around the world can be handled by LCL (Less than Container Load)

Overland Route

―Likewise, could you tell us what is excellent about the overland route?

Mayor Miyahashi
On the overland route, the Shinkansen bullet train and expressway are being developed.
Especially for the Shinkansen, the Hokuriku Shinkansen Komatsu Station is scheduled to open in the spring of 2024, enabling travel between Komatsu City and Tokyo in three hours.
The Hokuriku Shinkansen originally connected Tokyo to Kanazawa in Ishikawa Prefecture, but is currently undergoing extension work. This project will also extend the line not only to Komatsu Station but also to Tsuruga City in Fukui Prefecture. Subsequent extensions to Osaka are planned, and Komatsu’s transportation access is expected to continue to improve in the future.
In addition, Komatsu Airport and Komatsu Station are located within close proximity, approximately 10 minutes by car.
By expressway, it takes only 3 hours to reach Osaka and 2.5 hours to Nagoya. It takes only 5 minutes by car from the cargo area of Komatsu Airport to the nearest expressway IC, which is very close.

Such a high level of transportation access by land, sea, and air is rare in Japan, and is one of the greatest strengths of Komatsu City and the Ataka New Industrial Park.

Manufacturing Industries Are Concentrated Centered on Komatsu, A Construction and Mining Equipment Manufacture

―Could you tell us about the strengths of the Ataka New Industrial Park other than access?

Mayor Miyahashi
Komatsu City is one of the leading manufacturing cities in the Hokuriku region, a point of industrial concentration.
Komatsu City is home to many manufacturing companies, led by Komatsu Ltd. In addition to Komatsu, many other companies with the largest market share in Japan are located in Komatsu City.
Specifically, they are.
■J-BUS LTD：Bus manufacturing
■Kuma Lift Corp：Laggage lifting equipment
■Ltd Buildos：Manufacture of interior materials for JR trains and airplanes
■COMANY INC, Komatsu Wall Industry Co., Ltd：Manufacture of partitions
■Lion Power Co.Ltd.：Fully automatic wire processing machines
■SUNCORONA ODA co., ltd：Carbon fiber processing

Many excellent manufacturing companies support Japan in niche fields, such as
Komatsu and many of the above-mentioned companies with the largest market share in Japan, as well as related companies and factories, are concentrated in Komatsu City, forming a large industrial cluster.

The first advantage of locating a manufacturing company in Komatsu City is the city’s excellent industrial concentration. Combined with the excellent labor force, which we will discuss later, you can enjoy the benefits of industrial concentration, such as the concentration and sharing of skills, high efficiency in procurement of equipment and raw materials, and smooth labor availability.

Since a large industrial cluster has been formed in Komatsu City itself, the city is expected to benefit from the skill development of industrial clusters, high efficiency in procurement, and human resources.

If a Vietnamese manufacturing company were to locate in Vietnam, one of the advantages would be the ability to call itself “Made in Japan.
Consumers in Vietnam are increasingly concerned about safety, hygiene, and environmental impact, and traceability and product branding have become major trends. Therefore, “Made in Japan” brands are expected to remain promising in the Vietnamese market.

Low Electricity Cost

Mayor Miyahashi
As a supplement, electricity in Komatsu City is one of the cheapest in Japan. This is because Hokuriku Electric Power Company has the lowest electricity rates for each major private power company in Japan. When considered in conjunction with the subsidy system I will discuss later, a large cost cut can be expected. This is one of the advantages of locating your company in Komatsu City.

Fewer Disasters

―Could you tell us about the risk of disasters in the Ataka New Industrial Park?

Mayor Miyahashi
Japan is a country where disasters such as typhoons and earthquakes are relatively common. However, Komatsu City has very few disasters in Japan.
First, regarding typhoons, Ishikawa Prefecture has not experienced a typhoon in the past 50 years. The number of typhoons approaching the Hokuriku region itself is also relatively low, averaging 2.8 times per year.

Mayor Miyahashi
Regarding earthquakes, Komatsu City is not located on an active fault line and has not experienced an earthquake directly under the city for more than 100 years. In addition, the number of earthquakes of intensity 3 or higher is low, averaging 0.4 per year.

Mayor Miyahashi
We believe that the low number of disasters in Komatsu City is a very important indicator for companies establishing manufacturing bases from the perspective of BCP (Business Continuity Plan) measures.

The Nankai Trough earthquake, which has been reported for several years, a massive earthquake directly under the Tokyo metropolitan area, and climate change caused by global warming in recent years are major risks to corporate business activities in the mid- to long term. This is especially a matter of life and death for manufacturing companies that require large-scale factories and expensive equipment. Komatsu City is a disaster-free area in Japan.

Securing Human Resources

―You mentioned earlier that the aspect of securing human resources is also a strength of Komatsu City. What are the specific strengths of Komatsu City?

Mayor Miyahashi
First, Komatsu City has a high employment rate and an abundant labor force. The city is characterized by high employment rates in all categories, including youth, women, and the elderly. In particular, the employment rate for women is approximately 10% higher than the Japanese national average, and in the Minami-Kaga region, which includes Komatsu City, the paid employment rate for women raising children is approximately 16% higher than the national average.

We believe that what supports this high employment rate is Komatsu City’s “ease of working. Among Japanese cities with a population of 100,000 or more, Komatsu City ranks first in Japan as a “city with diverse work styles. This is due to short commuting times, a large housing area related to teleworking, and excellent nursing care and welfare services.
In addition, Komatsu City has the highest number of universities, junior colleges, and technical college schools per population in Japan, making it a treasure house of talented human resources.

Even More Livable Environment in Japan

―I believe that “ease of working” as a city is directly related to “ease of living,” but what about Komatsu City in terms of “ease of living”?

Mayor Miyahashi
You are right.
For example, in terms of measures for foreigners, Komatsu City provides tenancy support available to foreign companies and foreigners. We introduce real estate, tenants, and co-working spaces that meet your needs, offer free Japanese language classes in Komatsu City, and have a “Foreigner Support Desk” at City Hall as a dedicated contact point for foreign residents.
In addition, Komatsu City aims to provide the most generous support for child-raising in Japan, and has been providing free school lunches for elementary and junior high school students since 2023, and has achieved zero children on waiting lists for childcare by providing a full range of nursery schools and kindergartens.

In addition, Komatsu City is rich in nature and culture, and many people enjoy the view of Mt. Hakusan from Kiba Lagoon.
Komatsu City’s high attractiveness as a place to live will keep your employees motivated.

IT Industry and DX Are Progressing

―I believe that companies that are considering the Ataka New Industrial Park are also interested in the use of ICT and DX in Komatsu City. Do you have any examples in this regard?

Mayor Miyahashi
Komatsu City is focusing on IT industry and DX. For example, there is a project to operate an automated bus between Komatsu Station and Komatsu Airport with automatic operation level 2 (driver monitoring) scheduled to start in the spring of 2024, and to start regular operation of automated buses with automatic operation level 4 (system monitoring) after 2025.
In addition, Komatsu City has concluded a comprehensive alliance with SoftBank Corp. on ICT utilization and DX promotion, and intends to continue to focus on development in the IT field.

The creation of such an environment is a great benefit to the companies that locate there.

The Relationship Between Komatsu City, Ishikawa Prefecture and Vietnam

This chapter will introduce the relationship between Komatsu City and Vietnam.

Vietnamese Population in Ishikawa Prefecture and Komatsu City

According to statistics from the International Exchange Division of Ishikawa Prefecture, there were 14,412 foreign residents in Ishikawa Prefecture as of December 31, 2021. Of these, the most common nationality is Vietnamese, accounting for 4,120 or slightly less than 30% of the total.

There are 470 Vietnamese living in Komatsu City. In neighboring municipalities, 379 people live in Kaga City and 448 people in Nomi City, forming a Vietnamese community of a certain size.

In addition, Komatsu University, a public university located in Komatsu City, has a School of International Exchange, where active international exchange is conducted by students with a strong overseas orientation.

Other efforts to promote exchange between the two countries include the Hokuriku Vietnam Friendship Association, which aims to promote the development and goodwill between Vietnam and Japan; in August 2022, a business exchange meeting with Ho Chi Minh managers will be held in Ishikawa Prefecture, strengthening the relationship with Vietnamese companies more than ever.

Vietnamese restaurants and stores specializing in Vietnamese foodstuffs have also opened in Komatsu in recent years.

Subsidy Program from Komatsu City

―Are there any subsidies available for moving into the Ataka New Industrial Park?

Mayor Miyahashi
Yes, Komatsu City has a subsidy program for companies locating in the city. Of course, this subsidy is also available for moving into the Ataka New Industrial Park.
Komatsu City’s subsidy system for companies locating in the city is one of the best among local governments in Ishikawa Prefecture, including reduction or exemption of fixed property tax.
Various industries are covered by the program, but this time we would like to introduce the program for the manufacturing industry, information and telecommunications industry (IT field), and satellite offices.

Manufacturing Industry

Mayor Miyahashi
This table outlines Komatsu City’s subsidies for business location targeting the manufacturing industry.

Target Area	Manufacturing Industry Location Promotion District →Industrial sites for sale by Komatsu City, the national government, the prefectural government, or public organizations deemed appropriate by the mayor.
Grant Requirements	[Grant Requirement 1] All of the following two conditions; ・Total fixed assets of 500 million yen or more ・Total fixed assets invested are 500 million yen or more.	[Requirement 2] All three of the following; ・Total fixed assets of 100 million yen or more　　　　　　　　　 ・At least 5 full-time employees ・Small or medium-sized enterprise.
Subsidy Rate (newly established)	[Requirement 1] 10% of total fixed assets invested	[Requirement 2] 5% of total fixed assets invested
Subsidy Rate (addition)	[Requirement 1] 5% of total fixed assets invested	[Requirement 2] 2.5% of total fixed assets invested

Mayor Miyahashi
The following three requirements are also set for the subsidy rate.
・If an existing property is to be used, the subsidy rate will be halved.
・In the case of a business in Komatsu City that establishes an office in a new industry, it will be treated as a newly established business.
・Land must be newly established or expanded within 3 years after acquisition.

Optional subsidies for the establishment of new business facilities for the manufacturing industry are also available, including a subsidy for employment promotion.

employment adjustment subsidy	Number of new hires × 200,000 yen (conditions apply)
Subsidy for wastewater treatment facilities	Up to 20% of the installation cost (up to 30 million yen)
Subsidy for greening promotion	Up to 20% of the installation cost (up to 3 million yen)
Subsidy for introduction of smart energy equipment	Up to 20% of the installation cost (up to 100 million yen)

Mayor Miyahashi
The total amount of the above subsidies is limited to 500 million yen, 750 million yen, and 1 billion yen in three levels, depending on the amount of investment and the number of persons employed at any given time.
In addition, this subsidy from Komatsu City applies not only to the manufacturing industry, but also to the transportation/postal industry and the wholesale/retail industry.

IT Field

Mayor Miyahashi
The following table outlines Komatsu City’s subsidies for locating companies in the information and telecommunications industry (IT sector).

Target Area	Komatsu City
Delivery Requirements	Total fixed assets invested of 100 million yen or more and 10 or more new employees
Subsidy rate (newly established)	10% of total fixed assets invested
Subsidy rate (addition)	5% of total fixed assets invested

Mayor Miyahashi
The same three requirements are set for the subsidy rate as for the aforementioned subsidies for the location of manufacturing companies.
In addition, the same subsidies for employment promotion as for manufacturing companies are applicable to the ICT industry, but the subsidies for wastewater treatment facilities, greening promotion, and introduction of smart energy facilities are not applicable.

Satellite office location

Mayor Miyahashi
Komatsu City subsidies are also available for satellite office locations as follows.

Target Industry	Software, Internet related services, design, machine design, etc.
Delivery Requirements	Investment amount of at least 5 million yen and at least 3 full-time employees (net increase)
Subsidy rate1 (Newly established)	40% of eligible investment
Subsidy rate 1 (additional installation)	22.5% of eligible investments
Subsidy rate 2	Number of full-time employees (net increase) x 500,000 yen
Subsidy Limit	15 million yen for 1 and 2 combined
Subsidized Expenses	Acquisition cost of land/buildings, lease fee, relocation cost, rent of buildings (3 years), building renovation cost, etc.



Assistance programs for later years

―Are there any other subsidies or incentives available?

Mayor Miyahashi
In some cases, not only Komatsu City subsidy programs, but also Ishikawa Prefecture subsidy programs are available. These subsidy programs are also available to Vietnamese companies, and payment of subsidies will be made after occupancy and operation.

The support system introduced here is a part of the whole. Please refer to the Komatsu City website for the entire list.

For the entire Komatsu City Enterprise Location Support Program, please see below.

Upcoming Schedule

―-What is the schedule for the future of the Ataka New Industrial Park?

Mayor Miyahashi
The application period for the Ataka New Industrial Park is scheduled to begin in the summer of 2023.
Komatsu City has already received inquiries from several companies about the Ataka New Industrial Park, and in the event that there are too many applications, a third-party committee is expected to make the selection.

Summary

About the site. It is an excellent industrial park with many strengths such as accessibility by land, sea, and air, industrial concentration in the surrounding area, few natural disasters, and availability of human resources. In addition to the industrial park, Komatsu City is one of the most livable cities in Japan. Komatsu City is in the process of recruiting a wide range of new residents for the Ataka New Industrial Park, and both Japanese and foreign companies are eligible for subsidies and tax benefits before and after moving in. Komatsu City is in the process of recruiting new residents for the Ataka New Industrial Park. If you are considering moving into the park, please contact Komatsu City for more information.

For more information about the Shin-Ayake Industrial Park, please contact the following Komatsu City office.