Up to 70 percent of Japanese businesses investing in Vietnam plan to expand their operations in the country, considering it a key location for their investment.

A Japan External Trade Organisation (JETRO) survey announced in Ho Chi Minh City on February 24 revealed that 90 percent of respondents said their business expansion aims to raise turnover.

Non-manufacturing businesses added that Vietnam has attracted them with its growth capacity and potential.

The country is ranked fourth among 15 countries which have an abundant labour source and stable political and social situation, other of its advantages, according to the survey.

However, the Japanese businesses also expressed their concerns regarding policies, administrative procedures, tax and labour costs in the Southeast Asian country.

Yasuzumi Hirotaka, Managing Director of JETRO’s Ho Chi Minh City Office, suggested Vietnam accelerate policy and institutional reform, which is of great concern to Japanese businesses.

He also called on the country to provide more assistance to domestic and foreign firms operating in the support industry by offering low interest rates and personnel development.

The survey, which questioned nearly 1,000 Japanese firms in 20 countries and territories in Asia and Oceania, aims to evaluate businesses’ performance to improve the investment environment in the two regions.-VNA