More than half of Japanese firms plan to expand in Việt Nam: survey
More than half of Japanese firms plan to expand in Việt Nam: survey
More than 56 per cent of the Japanese companies currently operating in Việt Nam have said they plan to expand their operations in the next year or two, according to the latest survey by the Japan External Trade Organisation (JETRO).
This figure solidifies Việt Nam's position in the top group of ASEAN markets where Japanese firms prioritise expanding their operations, driven by growing export demand and a robust recovery in the domestic market.
The survey also revealed that 64.1 per cent of Japanese enterprises in Việt Nam expect profits in 2024.
Looking ahead to 2025, optimism persists, with 50.4 per cent of businesses forecasting improved conditions, while only 9.2 per cent anticipate a downturn. For 2024 alone, 48.8 per cent of firms expect profitability to improve, up 16.8 per cent points from 2023.
Manufacturers attributed profit growth to increased export demand, while non-manufacturing businesses cited the recovery of domestic consumption.
Many Japanese firms aim to expand their sales functions in Việt Nam, with 62.2 per cent driven by growth in export demand and domestic purchasing power. It reflects the dual role of Việt Nam as a production hub and a growing consumption market for Japanese products and services.
Although Việt Nam's salaries are in the average range for the region, the 5.4 per cent salary growth in 2024 stands out as one of the highest. It signals competition for top talent, especially in the non-manufacturing sector where regional salary gaps are narrowing.
JETRO noted that this preliminary report focuses on business profit outlooks, future expansion plans and wages. Additional details, including production shifts, competitive dynamics and trade activities, will be released in January 2025.
According to the Ministry of Planning and Investment, Japan ranked fifth among 110 countries and territories investing in Việt Nam in the first 11 months of 2024, with registered capital exceeding US$3.61 billion, accounting for nearly 11.5 per cent of total foreign investment.
