Up to 70 percent of Japanese businesses said they want to expand operations in Vietnam (Illustrative image. Source VNA)

Hanoi (VNA) –
According to the latest survey conducted by the Japanese External Trade Organisation (JETRO), up to 70 percent of Japanese businesses said they want to expand operations in Vietnam, a year-on-year rise of 10 percent.

The survey revealed that more than two-thirds of the 652 Japanese enterprises operating in Vietnam have expansion plans, mainly due to the country’s rising revenue and high growth potential.

Hironobu Kitagawa, chief representative of JETRO in Hanoi, said the figure is higher than in other regional countries, indicating Vietnam continues to be an attractive investment destination.

The survey also showed that 65.1 percent of Japanese companies recorded profits in Vietnam last year, while 19.4 percent reported losses.

Vietnam is attractive to Japanese businesses thanks to market size and growth potential as well as socio-political stability and low labour costs.

However, Japanese firms suggested Vietnam tackle major issues such as rising labour costs, incomplete legal framework and vague implementation, and complicated tax and administrative procedures.

Despites these shortcomings, the JETRO chief representative believed that Vietnam remains an attractive destination for Japanese firms.

With current investment trends, businesses are likely to invest in consumption products, services and retail in 2018 and beyond, he said.

JETRO also pledged to support Vietnamese firms who want to invest in Japan, he noted.-VNA