More Japanese firms keen on Vietnam
More Japanese firms keen on Vietnam
An increasing number of firms from Japan and other countries are moving their production to Vietnam from neighboring China, said Kobayashi Yoichi, chairman of the Japan-Mekong Business Cooperation Committee, at a dialogue in Hanoi City today, February 25.
Held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Japan Chamber of Commerce and Industry (JCCI), the Vietnam-Japan Economic Dialogue was held within the framework of a working session of a delegation of Japanese businesses from February 24 to 27, reported news website BizLIVE.
These businesses discussed cooperation opportunities between Vietnam and Japan in various sectors, especially supporting industries.
Yoichi told the participants that with the China plus One strategy, the pace of moving low-cost manufacturing from China to Vietnam has recently picked up.
According to Yoichi, the number of Japanese firms currently making investments in China totals some 3,300, while that in Vietnam is some 1,900, with capital amounting to US48.6 billion. Some 70% of the participating Japanese firms expressed interest in further investment in the country.
“Not only Japan but also many other countries are moving their manufacturing from China to Vietnam in the hi-tech and other industries. We expect this investment shift to help develop Vietnam’s supporting industries,” said the Japanese official.
VCCI president Vu Tien Loc said that those firms, including transnational corporations and small and medium-d enterprises, are a driving force to boost investment cooperation between the two sides.
In fact, major investors and their joint ventures in the assembly sector mainly import parts from China, South Korea and Japan. However, the added value to Vietnam’s economy is low.
According to Loc, some major enterprises from Japan, Europe and the United States have already established a presence in Vietnam and have carried out business operations, but they have difficulty finding ways to localize the content of their products.
Therefore, Loc underlined the need to promote the development of small and medium-d enterprises in the country and call on their counterparts in supporting industries in advanced countries to set up shop in Vietnam. These firms can then work together to stimulate the industries’ development.
He suggested that the Government adopt coherent policies to prop up small and medium-d enterprises and supporting industries.
After 45 years of diplomatic ties, Japan has become a leading partner of Vietnam in multiple areas. Last year saw their two-way trade reach roughly US$40 billion.
