Vietnam attractive to Japanese investors

Wednesday, 04/05/2022 16:55
President of the Japan External Trade Organization (JETRO) Nobuhiko Sasaki has said that Vietnam is showing the attraction of a potential market that can be capable of obtaining growth for Japanese investors. Up to half of surveyed enterprises said they wanted to continue expanding investment in Vietnam.

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Automobile production at the Toyota Vietnam (Photo: Toyota Vietnam)

According to Mr. Nobuhiko Sasaki, trade and investment cooperation between Vietnam and Japan has made much progress in recent years. According to statistics, a total of 4,935 investment projects from Japan into Vietnam have been approved with a total investment capital of up to USD64.5 billion.

In terms of trade, Vietnam's exports to Japan ranked 4th and imports from Japan to Vietnam ranked 3rd (in 2021), with both being important partners of each other.

People-to-people and business-to-business exchanges between the two sides are also taking place actively. There are about 450,000 Vietnamese people living and working in Japan, contributing significantly to Japan’s economy.

Notably, the number of Japanese companies expanding into Vietnam is increasing, and the number of member companies of the Japan Business Association in Vietnam has also increased to 2,000 enterprises.

According to survey results, 55% of Japanese companies operating in Vietnam have business expansion plans in the next 1-2 years. This is also the highest rate among Southeast Asian countries.

Japanese investors all appreciate that Vietnam has potential both in terms of production and market. “I think it would be great if the two countries could build a relationship on which to complement each other's strengths and weaknesses,” said Mr. Nobuhiko Sasaki.

“We are also considering boosting cooperation between the two countries in the field of innovation - a field of cooperation where demand between the two sides is rapidly increasing.”

Japan is still affirming its position as one of the leading foreign direct investors (FDI) in Vietnam. Giving a forecast on FDI flows from Japan to Vietnam in the near future, especially after the visit of Prime Minister Kishida Fumio, Mr. Nobuhiko Sasaki reaffirmed the result of a survey that up to half of the Japanese enterprises have plans to expand investment in Vietnam. The reason given by Japanese investors is that Vietnam is showing the attraction of a market with growth potential.

Japanese businesses wish to be able to use the abundant human resources of Vietnam and develop further together with the country.

“With such positive results, I expect FDI inflows from Japan to Vietnam will increase in the coming time, especially after the visit of Prime Minister Kishida Fumio,” he added./.

Compiled by BTA