Investing perception improving for Japan

Apr 16th at 18:58
16-04-2021 18:58:54+07:00

Investing perception improving for Japan

Vietnam’s GDP success so far this year has been highlighted by the business community, demonstrating the country’s drastic efforts to reach the dual goals of controlling the coronavirus pandemic while maintaining economic development. Nakajima Takeo, chief representative of the Japan External Trade Organisation in Hanoi and vice chairman of the Japanese Chamber of Commerce and Industry, discussed with VIR’s Minh Anh about how important the growth is, and highlights the Japanese  business expectations from the new leadership.

Investing perception improving for Japan
Nakajima Takeo, chief representative of the Japan External Trade Organisation in Hanoi and vice chairman of the Japanese Chamber of Commerce and Industry

Vietnam’s economy is estimated to grow 4.48 per cent on-year in the first quarter of 2021 despite the pandemic. How important is this to Japanese businesses?

The fight against COVID-19 continued in February and March across the country during the first quarter in 2021. My impression is that Vietnam just about managed to attain the same GDP growth as in the previous quarter.

Specifically, the manufacturing sector was the most active (up 9.5 per cent on-year), thanks to the limited production halt in some cities and provinces, while services are still sluggish (up 3.3 per cent).

Among cities and provinces, the northern province of Hai Duong is an important manufacturing hub in the north for the Japanese business operation. We should be cautious about how Hai Duong’s situation will impact the sector in the second quarter.

Could you compare Vietnam and other regional countries in terms of economic recovery in the period?

Last year was a challenging one for all. Only China and Vietnam attained positive GDP growth among the leading Asian economies, and the Vietnamese government’s priority to tackle the pandemic was obvious and determined.

The new leadership has been inaugurated since last week to make clear the direction of the country. The smooth power transition is another positive aspect of Vietnam to make “business as usual”.

The Japanese business community expects the new government to continue promoting foreign direct investment, improving business climates, and streamlining rules and regulations.

How does economic growth impact Japanese companies’ perceptions of the trade and investment environment in Vietnam now, and do they have any new plans for Vietnam in the post-vaccination landscape?

Firstly, Vietnam is one of Asia’s brightest spots in manufacturing and non-manufacturing for Japanese investors. For manufacturing, recovering export markets is encouraging.

Yet fragile, the United States, Japan, and European economies have witnessed positive results in recent months. Most of the final products of Japanese manufacturers target the US, Japan, and Europe. Domestic businesses have attracted Japanese interest in recent years as well.

A recent survey from the Japan External Trade Organization (JETRO) over Japanese enterprises in Vietnam revealed that 66 per cent of the surveyed businesses think an increase in their revenue in the domestic market is the main reason for their business expansion. In comparison, 49 per cent said an increase in export.

Secondly, the digital space opens new opportunities in Vietnam. Fintech, retail, transportation, healthcare, and education are just a few examples in which Japanese companies are starting to explore investment. JETRO has begun a series of online seminars to connect Vietnamese startups with the Japanese players, and more than 1,200 people joined the events last year.

Japan ranked second among foreign investors in Vietnam in the first quarter of 2021 with the total registered capital of nearly $2.1 billion, making up 20.8 per cent of the country’s total. The majority of Japanese investment in this period was new, accounting for 70.8 per cent of total Japanese registered capital.

Japan is among Vietnam’s four biggest trading partners. Textiles and garments, machinery, means of transport, and seafood are among Vietnam’s groups of “billion-US-dollar” goods exports to Japan.

VIR





NEWS SAME CATEGORY

Digital transformation to drive businesses' economic growth

To successfully implement digital transformation, local businesses will have to review their capabilities and needs as well as applying suitable solutions.

Thai investors scaling up presence with raft of activities

Thai investors are banking on the promising future of the Vietnamese market, with several large conglomerates further increasing their foothold in the country.

First Vietnamese businesswoman awarded prestigious French honor

Vietjet Air CEO Nguyen Thi Phuong Thao has become the first Vietnamese businesswoman to be conferred the Legion of Honor, the highest French order of merit.

Dong Thap steps up efforts for investment promotion

The Mekong Delta province of Dong Thap has set forth a plan for trade, investment, and tourism promotion with a total estimated budget of VND10 billion ($434,780).

M&A deals spur Vietnam’s retail market

Vietnam’s retail market is expected to rebound in 2021 thanks to the recovery of consumer confidence.

Teleconference boosts Belgian investment in Binh Duong

A teleconference was held on Wednesday to promote Belgian investment in the southern province of Binh Duong.

Quang Ninh leads in provincial competitiveness again

The northern province of Quang Ninh has led in provincial competitiveness among all 63 provinces and cities for four consecutive years, according to the ranking...

Dong Nai aims to attract 700 million USD in FDI to IPs this year

The southern province of Dong Nai plans to attract some 700 million USD in FDI to its industrial parks (IPs) this year.

Quang Ninh remains most competitive province for 4th straight year

Quang Ninh has topped the Provincial Competitiveness Index drawn up by the Vietnam Chamber of Commerce and Industry for a fourth time in a row.

Vietnamese more concerned about healthcare, economic growth amid pandemic: report

Vietnamese have grown increasingly concerned about health and economic development amid the Covid-19 pandemic, a 2020 report on governance and public administration...


MOST READ


Back To Top