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|Japanese enterprises work with provinces in Vietnam via webminar|
"Promoting the economic co-operation between Vietnam and Japan and increasing technology transfer has helped to improve the production capacity of Vietnam," Vu Ba Phu, director of the Trade Promotion Department, said at the webinar.
The event was held by the Trade Promotion Agency under the Ministry of Industry and Trade and the Vietnam Trade Office in Japan, Trade Promotion Organisation Japan (JETRO), and the provinces of Vinh Phuc, Quang Ninh, and Nghe An on September 9.
Phu added that both high-profile and small and medium-sized enterprises are going to invest in other localities instead of concentrating only on Hanoi and Ho Chi Minh City as before, showing that the Vietnamese market has great potential in attracting Japanese enterprises to invest in business and production expansion.
The investment wave of Japan into Vietnam has seen consecutive increases in terms of quality and quantity. Notably, in 2018, Japan ranked first among the countries and territories having investment in Vietnam with $8.59 billion, making up 24.2 per cent of the overall capital inflows to the country.
By the end of last year, more than 2,000 Japanese firms had investments in Vietnam, with the accumulated capital of $59.3 billion, accounting for 16.7 per cent the total foreign direct investment capital.
JETRO’s survey of Japanese enterprises investing in Asia and Oceania in February 2020 reported that 63.9 per cent of Japanese enterprises doing business in Vietnam would continue to expand their operations. This is the highest rate in ASEAN and 3rd in the Asia and Oceania region.
Enterprises have time and again expressed their appreciation for Vietnam's socio-economic stability and success in controlling the pandemic. Besides, this country offers an ideal living environment for foreigners.
However, they are still concerned about increases in labour costs, overlapping regulations, and the limited capacity of the local supporting industries. In addition, they face difficulties in recruiting human resources, while the ratio of employees quitting is quite high.