Illustrative image (Source: thoibaotaichinhvietnam.vn) Hanoi (VNA) - Up to 70 percent ofJapanese businesses have announced that they want to expand operations in Vietnam,especially in manufacturing, trade and service, and retail sector, according tothe Japanese External Trade Organisation (JETRO).
Findings of the latest survey conducted by JETROon investment trend of Japanese firms operating in Vietnam in 2019 show that asmany as 65.3 percent of the 787 Japanese companies recorded high profits inVietnam in 2018.
The majority of these companies said the marketscale and growth are the greatest advantages of Vietnam’s investmentenvironment.
Other positive factors include low labour cost, political stability, and improvementof customs and administrative procedures.
Vietnam ranked fourth in political and social stability and cheap labour cost;sixth for market size and growth; and 12th for language barrier in theASEAN, Southwest Asia and Oceanian regions.
Japanese companies are getting the best out of the advantages from free tradeagreements that Vietnam have joined.
According to Takimoto Koji, chief representative of the JETRO Office in Ho ChiMinh City, Japan was the biggest foreign investors in Vietnam in 2018 with 630projects worth nearly 8 billion USD.
Besides focusing their investment in Hanoi and HCM City, Japanese firms haveexpanded operation to many adjacent localities.
Speaking at a press conference in HCM Cityrecently, Takimoto said in 2019, the manufacturing industry remains the mostattractive field to Japanese businesses.
Each year, the office receives representativesof around 6,000 Japanese firms seeking investment opportunities in Vietnam,with many keen to expand the provision of services.
Some operating in the fields of pharmaceuticalsand cosmetics also invest in Vietnam through purchasing stakes in local firms.
With a population of over 90 million people,Vietnam has a large-scale consumption market with high growth potential. Therefore,several Japanese enterprises specialising in production for exports are likelyto tap into the market.
Japanese enterprises recommended that Vietnam improve its legal system toattract more foreign investors in the coming time.-VNA
VNA
