Japanese enterprises are expanding investment in Vietnam. (Photo: congthuong.vn)
In 2019, the foreign investment sector continued to be a highlight in Vietnam’s economic picture, with a total investment capital of USD38 billion and disbursement of USD20.4 billion for the first time. Japan ranked second in the list of foreign direct investors to Vietnam, with 4,385 investment projects worth over USD59 billion in registration capital. Many Japanese enterprises have been closely connected in Vietnam's economy, notably big names such as Toyota, Honda, Panasonic, Canon and Sumitomo.
Apart from the industrial sector, Japanese investors have entered other areas such as retail, finance - banking and food, with notable names like AEON and Uniqlo. It proves that Japanese investment is gradually expanding and increasingly visible in the Vietnamese economy. .
According to a survey conducted by Japan’s NNA Company, Vietnam was voted by Japanese enterprises as the most promising investment destination in 2020 in Asia, surpassing both India and other countries in Southeast Asia.
In 2020, the Vietnamese Government is interested in improving national competitiveness, renovating investment and business models with the goal of increasing the investment and business environment by 10 levels. It is submitting to the National Assembly to revise the Investment Law and the Corporate Law to institutionalize Politburo Resolution 50-NQ/TW which reconfirms the viewpoint that the foreign-invested economic sector is an important component of the Vietnamese economy, and it is encouraged and facilitated for long-term development in cooperation and healthy competition with other economic sectors.
The Vietnamese State respects and protects the legitimate and legal rights and interests of investors; and ensures harmony of interests between the State, investors and employees in enterprises.
At the recent Japan - Vietnam economic, tourism and labor forum, Deputy Prime Minister Vuong Dinh Hue emphasized that Vietnam is ready to create favourable conditions for investors, including Japanese businesses. In particular, the Vietnamese Government not only wants Japan to be the leading investor, but also the best investor in Vietnam. On a larger scale, Vietnam is a member of the Mekong sub-region that has agreed to cooperate with Japan in three connections: transport infrastructure, energy; soft infrastructure and institution, trade and investment facilitation; and human connectivity in connection with digital connectivity.
According to a report of the Japan External Trade Organization, in 2019, 66% of Japanese enterprises investing in Vietnam were profitable; and 64% of enterprises said that they had plans to expand their business in Vietnam./.