Making news

Vietnam becomes more attractive to Japanese enterprises

With a young population, great potential and increasing trade growth, Vietnam is offering big opportunities for Japanese firms to expand their market, according to the Japan External Trade Organisation (JETRO).

In fact, many Japanese enterprises have invested or expanded investment activities in Vietnam, focusing on the fields of food processing, agro-forestry-aquaculture, consumer goods, electronic components, industrial products, construction, transport and environmental protection.

Not only big firms, small and medium-sized enterprises are also increasing their investments in international markets.

JETRO has provided Japanese firms with advertisement costs and market information, and helped them to connect with Vietnamese investors, thus making it easier for them to operate in Vietnam.

At present, as many as 70 percent of Japanese enterprises operating in Vietnam have committed to expanding their investment, production and business in the country in the coming time. This proved that Vietnam continues to be an important destination for Japanese firms.

JETRO Chief Representative in Ho Chi Minh City Takimoto Koji said the Vietnamese government and Japanese enterprises should pay attention to training high-quality human resources, who can control robots.

Priority should be also given to developing energy and infrastructure, especially transport infrastructure, he said.

Vo Tan Thanh, Director of the Vietnam Chamber of Commerce and Industry’s Branch in HCM City, said Vietnam is accelerating reformd to attract investment, and supporting investors in all fields, especially in handling administrative procedures and reducing taxes.

The Vietnamese government has devised many solutions to improve the country’s investment and business environment in a bird to lure more foreign investors, especially those from Japan, he said.

To cooperate sustainably with Japanese partners, Vietnamese firms need to invest more in science and technology to better the quality of their products and make their production more professional, Thanh suggested.

They should also boost linkages to meet the demand for materials from Japanese businesses, he stressed.

Economic and trade relations between Vietnam and Japan have recorded rapid development in recent years. Japan is now the fourth largest trade partner of Vietnam after China, the US and the Republic of Korea. The two countries strive to lift their trade turnover to 60 billion USD by 2020.

By the end of 2018, Japan topped the list of foreign investors in Vietnam with combined registered capital of 9.5 billion USD. Around 1,800 Japanese enterprises are operating in the Southeast Asian country, some 1,000 of which are in Ho Chi Minh City.