Japan to boost investment in Vietnam’s manufacturing industry

06/03/2019    86

Japanese companies highly evaluate Vietnam’s business climate and tend to boost investment in the  manufacturing industry, heard a press conference held by the Japan External Trade Organisation (JETRO) Office in Ho Chi Minh City on March 4.

In 2018, Japan poured the largest amount of foreign direct investment (FDI) into Vietnam with total registered capital of nearly 8 billion USD, making up 31 percent of the Southeast Asian country’s total FDI.

In particular, investment in the manufacturing sector during the year increased 3.6 times against 2017 to reach over 1.67 billion USD.

Takimoto Koji, head of the JETRO Office in HCM City, said Japanese businesses highly evaluate the business environment in Vietnam as well as the country’s political and social stability.

In 2019, the manufacturing industry remains the most attractive field to Japanese businesses, he said.

Each year, the office receives around 6,000 Japanese firms seeking investment opportunities in Vietnam, with many keen to expand the provision of services.

Some operating in the fields of pharmaceuticals and cosmetics also invest in Vietnam through purchasing stakes in local firms.

With a population of over 90 million people, Vietnam has a large-scale consumption market with high growth potential. Therefore, several Japanese enterprises specialising in production for exports are likely to tap into the market.

According to a JETRO survey, 2018 was the third consecutive year in which Vietnam received a record number of new Japanese investment projects, standing at 630. It was also the fourth consecutive year that 70 percent of Japanese businesses operating in the country revealed that they will expand their investment in Vietnam.

Japanese enterprises recommended that Vietnam improves its legal system to attract more foreign investors in the coming time.

Source: VNA