About 66 percent of the 458 Japanese firms based in Vietnam, plan toexpand their business during the next one or two years, a recent surveypointed out.
The survey was conducted by the Japan External Trade Organisation (JETRO).
TheJETRO survey of Japan-affiliated companies in Asia and Oceania in 2014showed that 32.4 percent of the enterprises want to maintain theirexisting level of business, while only 1.3 percent want to scale backtheir operations.
The most common reason forbusiness expansion is expected sales growth of 85 percent, followed bysizeable growth potential of 45 percent and greater receptivity forhigh-value added products at 17 percent, the survey said.
It alsonoted that 51.4 per cent of Japanese firms in Vietnam expected theiroperating profits to surge in 2014, compared with the year before, while54.8 per cent hoped their profits in 2015 would surpass those reportedin 2014.
When asked to identify the problems or challenges ofdoing business in Vietnam, most Japanese firms outlined wage increasesas the top concern. This was followed by difficulty in procurement ofraw material and spare parts, complicated customs' clearance proceduresand the challenges involved in ensuring quality control and quality ofemployees.
Meanwhile, Japanese enterprises in Vietnam also expectsimplified customs clearance and they want to avoid double taxation andcorrect irregular withholding tax rates.
Japanese firms inVietnam are also seeking mutual duty exemption among Cambodia, Laos,Myanmar and Vietnam, integration of interpretation and managementconcerning the rules of origin and a reduction in non-tariff barriers,such as license requirements and mandatory standards, as the ASEANEconomic Community is expected to be assembled by the end of this year.
The survey, which was conducted from October 10 toNovember 14 last year, was intended to understand the businessactivities of Japan-affiliated companies in Asia and Oceania.
Thesurveyed firms operate in wide range sectors, including automobiles,machinery, chemical and pharmaceutical, as well as food, textile, retailand transport, ICT and finance.-VNA
The survey was conducted by the Japan External Trade Organisation (JETRO).
TheJETRO survey of Japan-affiliated companies in Asia and Oceania in 2014showed that 32.4 percent of the enterprises want to maintain theirexisting level of business, while only 1.3 percent want to scale backtheir operations.
The most common reason forbusiness expansion is expected sales growth of 85 percent, followed bysizeable growth potential of 45 percent and greater receptivity forhigh-value added products at 17 percent, the survey said.
It alsonoted that 51.4 per cent of Japanese firms in Vietnam expected theiroperating profits to surge in 2014, compared with the year before, while54.8 per cent hoped their profits in 2015 would surpass those reportedin 2014.
When asked to identify the problems or challenges ofdoing business in Vietnam, most Japanese firms outlined wage increasesas the top concern. This was followed by difficulty in procurement ofraw material and spare parts, complicated customs' clearance proceduresand the challenges involved in ensuring quality control and quality ofemployees.
Meanwhile, Japanese enterprises in Vietnam also expectsimplified customs clearance and they want to avoid double taxation andcorrect irregular withholding tax rates.
Japanese firms inVietnam are also seeking mutual duty exemption among Cambodia, Laos,Myanmar and Vietnam, integration of interpretation and managementconcerning the rules of origin and a reduction in non-tariff barriers,such as license requirements and mandatory standards, as the ASEANEconomic Community is expected to be assembled by the end of this year.
The survey, which was conducted from October 10 toNovember 14 last year, was intended to understand the businessactivities of Japan-affiliated companies in Asia and Oceania.
Thesurveyed firms operate in wide range sectors, including automobiles,machinery, chemical and pharmaceutical, as well as food, textile, retailand transport, ICT and finance.-VNA
