Japanese firms expect to expand operations in Vietnam
Some 64% of Japanese enterprises participating in a survey intend to expand their business in Vietnam, the highest proportion among the ASEAN countries, heard attendees at a press briefing on February 14.
Speaking at the press conference to announce the results of the 2019 survey of the business conditions of Japanese firms in Asia and Oceania, Takeo Nakajima, chief representative of the Japan External Trade Organization in Hanoi, noted that the intention to expand remains strong among Japanese firms in Vietnam.
The reason for this is that they expect their profits to improve in the country, the chief representative stated.
Speaking at the event, Do Nhat Hoang, head of the Foreign Investment Agency, under the Ministry of Planning and Investment, explained that Japanese firms still believe in the Vietnamese business market.
In 2019, the number of Japanese firms visiting Vietnam to research and study the investment and business climate rose by 30%, Nguoi Lao Dong newspaper reported, citing Hoang.
Nakajima pointed out that projects related to power and smart cities have drawn the most interest from Japanese firms.
Apart from this, the number of tourists exchanged between Vietnam and Japan has reached 1.4 million each year, revealing the great potential of the tourism sector in Vietnam, thereby attracting more Japanese investors.
The survey indicated that 42.3% of 122 respondents plan to move their production bases to Vietnam in the coming years, while over 62% of these surveyed companies aim to move out of China.
Nakajima revealed that many firms prefer to open production facilities in Vietnam or other countries while maintaining operations in China to disperse business risks in China due to high production costs.