Vietnam is Still a Favorite Destination for Japanese Investors

Survey of Japan External Trade Organization (JETRO) published today in Hanoi shows that there are up to 70% of Japanese enterprises want to invest in Vietnam and expand their production in Vietnam, the highest rate among surveyed countries.

Specifically, if 69.8% of Japanese enterprises surveyed in Vietnam think that they will expand their business in Vietnam, this rate in China is only 48.7%, Malaysia is 54% and Thailand is 52.2%.

This is also the second year in a row, the result of Vietnam ranked first in this index.

Evaluating the above results, according to Chief Representative of JETRO in Vietnam, even for enterprises established before 2010, there were 67.1% of businesses with the motto of expanding production, this is a relatively high rate, showing very positive signals.

It shows that Vietnam continues to be an important investment destination, Japanese businesses are doing business effectively in Vietnam and putting high expectations on the potential and growth potential of this country.

In the study of the Ministry of Planning and Investment, Japanese enterprises are interested in Vietnam based on the advantage of labor costs, the level of support from the government as well as the people, the economic scale is constantly increasing. In particular, the fact that Vietnam becomes partner in many free trade agreements is also a channel for Japanese businesses to access new markets.

Commenting on the survey results, according to Deputy Minister of Planning and Investment, with nearly 70% of Japanese enterprises want to expand production in Vietnam, the highest rate in the surveyed countries have clearly reflected the stable economic environment, as well as the attractiveness of Vietnam for Japanese businesses.

In addition, the number of Japanese businesses that make profits has increased to 65.3% in the context of foreign invested enterprises generally reported a loss of 52%.

Towards 2019, the Government of Vietnam will submit to the National Assembly for amendments to the Investment Law and the Enterprise Law, perfecting the legal corridor for domestic and foreign enterprises to invest in business.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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