Many Japanese investors have recently said that they will chooseVietnam as a destination for their investments within the next 1-3years, although there remains some concerns over the quality of theworkforce and the country’s infrastructure.
The InvestmentReview, a local newspaper, cited a recent survey conducted this July bythe Japanese financial group Shokochukin, saying that Vietnam is thesecond choice in Asia for Japanese investors. Twenty-one percent of700 Japanese small and medium sized enterprises surveyed voted forVietnam while 30 percent opted for China .
For Japanesebusinesses, the country’s socio-politic stability, abundant and costeffective labour force, tax incentives and the potential for economicdevelopment give Vietnam a very competitive edge.
Thesefactors, said the paper, help investors feel secure when they decide toinject capital into this market and expand their businesses.
Accordingto the 2010 Vietnam Business Climate Report, 58 percent of Japaneseenterprises currently doing business in Vietnam said they would increasetheir investment, 40 percent would maintain their operations while 1.4percent would scale down and only 0.7 percent plan to withdraw from thecountry.
At a meeting with representatives of the Ministry ofPlanning and Investment in early July, the Executive Director of theInvestment and Tourism Division of Aichi province in Japan, MasanoriIto, said that many companies in his province had drawn up plans toinvest in Vietnam .
Aichi, one of the largest economic andindustrial centres in central Japan, has more than 70 investorsoperating in Vietnam, including Toyota, Honda, Suzuki and Yamaha.
However, some Japanese investors are concerned about electricity cuts and the quality of the workforce in Vietnam .
Tobecome more attractive as an investment haven, the Japanese ExternalTrade Organisation (JETRO) said that Vietnam needs to ensure stableand reliable electricity supplies, improve its workforce and re-adjustcost-related factors such as property taxes, transport costs andelectricity, water and communications fees.
The ForeignInvestment Agency (FIA) said that by the first half of this year, Japanranked third among 39 countries and territories having invested inVietnam with a total registered capital of 1.22 billion USD,accounting for 14.5 percent of all foreign direct investment in thecountry./.
The InvestmentReview, a local newspaper, cited a recent survey conducted this July bythe Japanese financial group Shokochukin, saying that Vietnam is thesecond choice in Asia for Japanese investors. Twenty-one percent of700 Japanese small and medium sized enterprises surveyed voted forVietnam while 30 percent opted for China .
For Japanesebusinesses, the country’s socio-politic stability, abundant and costeffective labour force, tax incentives and the potential for economicdevelopment give Vietnam a very competitive edge.
Thesefactors, said the paper, help investors feel secure when they decide toinject capital into this market and expand their businesses.
Accordingto the 2010 Vietnam Business Climate Report, 58 percent of Japaneseenterprises currently doing business in Vietnam said they would increasetheir investment, 40 percent would maintain their operations while 1.4percent would scale down and only 0.7 percent plan to withdraw from thecountry.
At a meeting with representatives of the Ministry ofPlanning and Investment in early July, the Executive Director of theInvestment and Tourism Division of Aichi province in Japan, MasanoriIto, said that many companies in his province had drawn up plans toinvest in Vietnam .
Aichi, one of the largest economic andindustrial centres in central Japan, has more than 70 investorsoperating in Vietnam, including Toyota, Honda, Suzuki and Yamaha.
However, some Japanese investors are concerned about electricity cuts and the quality of the workforce in Vietnam .
Tobecome more attractive as an investment haven, the Japanese ExternalTrade Organisation (JETRO) said that Vietnam needs to ensure stableand reliable electricity supplies, improve its workforce and re-adjustcost-related factors such as property taxes, transport costs andelectricity, water and communications fees.
The ForeignInvestment Agency (FIA) said that by the first half of this year, Japanranked third among 39 countries and territories having invested inVietnam with a total registered capital of 1.22 billion USD,accounting for 14.5 percent of all foreign direct investment in thecountry./.
