Japanese companies expand investment and business in Vietnam

Approximately 64% of Japanese companies plan to continue expanding their businesses in Vietnam due to their favorable investment environment. As part of a study by the Japan External Trade Organization (Jetro) regarding investment in Asia and Oceania in 2019, JETRO Hanoi has shown that Japanese companies are expected to increase their revenue growth, development capacity, stable production and consumption distribution network, and low cost. , Said it will continue to grow its business in Vietnam based on workforce, regulations and business procedures.

According to this survey, 65.8% of the Japanese companies doing business in Vietnam are profitable. When it comes to manufacturing, 80% of companies are profitable.

Therefore, we are recording an increase in the number of Japanese companies that are newly expanding into Vietnam.

However, JETRO Hanoi expressed concern that Vietnamese companies still have various risks in Vietnam, including rising labor costs, complicated administrative procedures, and tax laws.

It shows that Japanese companies are increasing the purchase of raw materials from Vietnamese companies since 2010. However, 56.2% of Japanese companies still focus on purchasing accessories and raw materials from local companies.

Improve productivity through cooperation between Vietnam and Japan

JETRO says Vietnam and Japan can promote cooperation in the future to improve productivity, such as robots, IoT and AI applications.

It is expected that start-up companies in both countries will support cooperation.

JETRO urged the Vietnamese government and the Ministry of Industry and Trade to solve the existing problems and issues of Japanese investors in order to create favorable conditions for Japanese companies. Vice Minister Do Thang Hai says the ministry and other ministries will create more favorable conditions for production, business and investment of Japanese companies.

On the other hand, Vietnamese companies need to be further coordinated with Japanese companies in order to use the Free Trade Agreement (FTA). Vice Minister Do Thang Hai hopes that Japan will promote further cooperation in supporting industries to improve production capacity and increase localization in Vietnam.

He now hopes that Vietnam's presence in trade relations with Japan will improve as the coronavirus epidemic seriously affects Vietnam's exports to China.