Japan helps 15 companies move factories to Vietnam
Wednesday, 22/07/2020 11:03 (GMT+7)
Fifteen out of more than 80 Japanese enterprises received support from the government to move factories to Vietnam, reported by the Japan External Trade Organization (JETRO).
Headquarters of Shin-Etsu Polymer Co., Ltd in Tokyo, Japan. (Photo: shinetsu.info)
JETRO said that this was a move to improve the gap in the Japanese supply chain since the COVID-19 pandemic had broken out and spread.
The project moving businesses to Asia also aimed to strengthen Japan-ASEAN economic and industrial cooperation.
Bloomberg said the Japanese government would start paying some companies to move factories out of China back to their home country or to Southeast Asia.
The move aims to improve supply chains and reduce dependence on manufacturing in China.
Nikkei also confirmed that the Japanese government would pay a total of 70 billion Japanese yen (653 million USD) for eighty-seven companies or groups to move production lines.
Thirty of these will receive money for investments in Southeast Asia including Vietnam, Myanmar, Thailand and others.
The other 57 projects would head to Japan, said Nikkei./.
CPV/VNA
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