A trade centre invested by Japanese retail giant AEON in Hanoi (Source: VNA)
Hanoi (VNA) – Japanese businesses are stepping up investments in trade and services in southern Vietnam, said head of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City Takimoto Kogji .

Surveys conducted by Japanese firms reveal that southerners’ purchasing power is on the rise, Kogji said, according to Sai Gon Giai Phong (Saigon Liberated) newspaper.

Apart from trade and services, the 1,600 Japanese enterprises in Vietnam also invest in food, yarn, machinery and electricity-electronics in the country, according to JETRO.

In the support industry, Kogji said Vietnam has met only 32 percent of production demands and Vietnamese firms have yet to join the supply chain of their Japanese counterparts.

However, he noted, local businesses have begun using cutting-edge machines and equipment to provide complex products with precision.

The official suggested firms make greater efforts to revamp their operations to engage in the supply chain.-VNA