Japanese firms mull over expansion plans in Vietnam

Việt Nam maintained its position as an important investment destination for Japanese companies, with some 70 per cent of operational Japanese-invested firms making plans for business expansion here.

This information was revealed by Hironobu Kitagawa, chief representative of Japanese External Trade Organisation (JETRO), in Hà Nội, at a meeting with the Ministry of Industry and Trade on January 29.

According to the latest survey conducted by JETRO on the operation of Japanese firms in Asia and Oceania, 65.1 per cent of Japanese businesses operating in Việt Nam reported profits, up 2.3 points over the 2016 survey.

Some 70 per cent of Japanese firms have mulled over expansion schemes in Việt Nam given the country’s market size, growth, stable political and social state of affairs, and cheap labour cost.

This was a high rate in comparison with other countries where JETRO conducted the annual survey, Kitagawa said. “Việt Nam continues to be an important investment destination for Japanese businesses.”

However, the head of JETRO in Hà Nội also pointed out the risks in the investment climate, concerns and obstacles that Japanese enterprises are facing during the investment process in Việt Nam.

The latest survey was conducted with nearly 12,000 Japanese enterprises in 20 countries and territories in Asia and Oceania from October 10 to November 10, 2017. In Việt Nam, 1,345 Japanese firms participated in the survey.

The full report will be made available next week.

According to Deputy Minister of Industry and Trade Đỗ Thắng Hải, the survey provides comprehensive and objective information to help the Vietnamese Government and ministries to make effective and practical policies.