Japanese businesses prioritize investment in Vietnam

June 03, 2016 | 14:30

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Around 53.5% of the surveyed Japanese businesses chose Vietnam as their investment destination in ASEAN, up 4.9% over last year, according to a survey conducted by Mizuho Research Institute on 1,100 businesses.

japanese businesses prioritize investment in vietnam hinh 0

Being a member of Trans-Pacific Partnership (TPP) Agreement is one of Vietnam’s advantages, said Japanese investors.

Relating to plans to expand investment in 12 TPP member countries, 12.8% of the surveyed businesses chose Vietnam, 10.7% chose Japan while 4.9% chose the US.

Another survey conducted by the Japan External Trade Organization (JETRO) early this year showed that more than 60% Japanese businesses operating in Vietnam planned to expand their investment and considered it an important investment destination.

Japanese businesses named low labour cost, social and political stability, good investment environment and growth ability as Vietnam’s advantages.

The survey also said that Japanese businesses put a high hope on the establishment of the ASEAN Economic Community (AEC) with simplification of customs procedures, tax removal and unity in certificate of origin (C/O).

JETRO conducted the survey on 1,027 Japanese businesses, 364 of which invested in manufacturing and 193 others in non-manufacturing industries and services in Vietnam.

Around 58.8% of the surveyed businesses said they gained profits, down 3.5% while 26.2% suffered loss, up 1.3%, according to the survey.

In general, Vietnam has remained a trusted destination of Japanese investors. Japan’s investment in Vietnam will help the country improve its competitiveness in fields requiring highly qualified workers like engineering, manufacturing and electronics.

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