Spare parts manufacturing in a Japanese factory in Ho Chi Minh City. (Photo: sggp.org.vn)
From the start of the year, Japanese businesses poured nearly USD9 million into Ho Chi Minh city, accounting for 82.39% of the total foreign investment in the hub. Accordingly, mechanical engineering attracted the biggest investment with USD3.84 million. It was followed by electronics, services, chemicals, rubber plastics, garments and textiles and other industries.
The Japan External Trade Organization (Jetro) said that in June, 30 Japanese businesses expanded investment and production scale in Vietnam. The survey results on investment trends of nearly 10,000 Japanese businesses showed that up to 41% of Japanese companies are considering operation expansion in Vietnam in the next 3 years, up 5.5% compared to the previous year.
The reason given by the enterprises is the tension in economic relations between China and the US, plus the complicated situation of COVID-19, that have broken many supply chains for Japanese supporting industrial products.
Therefore, the Japanese government assisted companies to cut production in China and increase production and business in ASEAN. Of which, Vietnam is assessed as a country of safe investment climate and good epidemic control./.