70 percent Japanese businesses to expand investment in Vietnam

Over 70 percent of Japanese businesses in a recent survey affirmed that they will expand investment, trading and production scale in Vietnam, said representative head of Japan External Trade Organization (Jetro) Takimoto Koji in HCMC at a meeting yesterday.
Workers at a Japanese firm in Linh Trung export processing zone, HCMC (Photo: SGGP)
Workers at a Japanese firm in Linh Trung export processing zone, HCMC (Photo: SGGP)

At the meeting announcing the investment situation of Japanese firms last year and tendency in 2018, Mr. Koji said that 88 percent of Japanese companies are profitably operating in Vietnam and 70 percent of respondents affirmed that they will broaden investment, trading and production scale in Vietnam.

The results have been drawn after a survey of 652 out of 2,540 Japanese businesses operating in Vietnam. Of these, two thirds are production and one third are service companies.

Japanese firms’ investment structure in 2017 posted changes compared to 2016. The number of companies investing in manufacturing and processing industry reduced from 59 percent in 2016 to 40 percent in 2017.

Investment in real estate field strongly increased from 7 percent to 23 percent and slightly hiked in other fields such as warehouse, transport, hotels, restaurants and construction.

The investment structure change is expected to continue in 2018.

Japanese firms commented that in short and long term, Vietnam will continue being an attractive investment country with advantages such as large market scale with the population of over 100 million people.

Stable political and social situation and the Government's strong reform policies have created advantageous conditions for businesses to invest and develop.

However, they said that investment environment in Vietnam still has many risks, focusing on wage increase and inconsistent and intransparent implementation of policies and state regulations in localities.