According to Chief Representative of the Japan External Trade Organization (JETRO) in Hanoi Takeo Nakajima, the Japanese Government launched a support program for businesses to diversify their supply chains in ASEAN countries.
30 businesses have registered to participate in the program so far, including 15 enterprises want to open new factories in Vietnam.
From February, the Covid-19 pandemic has spread to China, Japan, the Republic of Korea, European countries, the United States and many countries in the world. Due to the pandemic outbreak, the supply chain of components and accessories has been interrupted affecting many sectors of automobile manufacturing, mobile phones, machinery, etc.
Japanese enterprises are in the lack of components and unable to perform their productions.
Mr. Takeo Nakajima emphasized that the Japanese manufacturers want to diversify their supply chains into other countries, but not completely shift their factories from Japan to other countries.
Vietnam has proven to remain an attractive investment destination for Japanese enterprises thanks to the numerous Japanese-speaking workers.
With a population of 95 million people along with improvement in living standard, Vietnam is expected to quickly become an attractive business market.
In addition to exporting, Japanese goods are produced in Vietnam in the process of supply chain expansion which will also serve the domestic market.
However, in addition to advantage of low-cost labor, Vietnam also needs to create more advantages as well as improve localization rate and develop its supporting industry.
The commercial flights between Japan and Vietnam have not been resumed due to the Covid-19 pandemic which is expected to significantly impact on the investment process, especially some businesses involved in diversification plans of supply chain in Vietnam.
