Japanese businesses keen on investing in Vietnam

Despite the adverse impacts caused by the COVID-19 pandemic, Japanese investors have continued to inject their money into the nation, according to industry insiders.

Most notably, the local retail and service industries have recently become more attractive to financiers from the East Asian country with a large capital inflow being poured into these fields.

This comes after Japanese global fashion retail brand Uniqlo officially opened its largest store in the country, thereby bringing the number of stores in the nation to nine just after two years after initially entering the Vietnamese market.

Furthermore, Japanese brand MUJI also opened its first store in Ho Chi Minh City last year and officially launched another shop in Hanoi in early July.

Tetsuya Nagaiwa, general director of MUJI Vietnam, said the company has chosen the nation as it is a promising  market, adding that it plans to open between eight and 10 stores locally in the future.

Japan’s AEON Group has also moved to expand its shopping malls in six provinces and cities across the country, with further intentions to start new investment plans soon.

Takeo Nakajima, chief representative of the Japan External Trade Organization (JETRO) in Hanoi, revealed that Japanese capital inflows have continued to pour into the nation, especially with the COVID-19 pandemic being brought under control.

May saw Japanese investor Fujikin Inc begin construction on an Research and Development (R&D) centre in Da Nang, with the site featuring a total investment of US$35 million.

Moreover, Sumitomo Group has continued implementing the second phase of the Thang Long Industrial Park in the northern province of Hung Yen, while also proceeding with the Van Phong 1 BOT Thermal Power Project.

Japanese firm NSG Vietnam Glass Industry Co., Ltd have also injected US$626 million into deploying two production lines featuring a total capacity of 500 tonnes per day in the southern province of Ba Ria - Vung Tau, while there are also plans to operate the third production line, scheduled to be put into operation by the end of 2025.

According to experts, the launch of the eighth phase of the Vietnam-Japan Joint Initiative, coupled with the upcoming official visit to Japan by Prime Minister Pham Minh Chinh from November 22-25, are anticipated to create a wealth of opportunities for promoting economic, trade, and investment co-operation between the two sides.

On the sidelines of the 26th UN Climate Change Conference of the Parties (COP26) in the UK recently, PM Chinh and his Japanese counterpart Kishida Fumio agreed to maintain business and investment activities as the pandemic is gradually brought under control.

Japanese enterprises have invested approximately US$3.4 billion in the Vietnamese market during the 10-month period, representing a year-on-year rise of 89.9% and increasing total registered capital in the country to nearly US$64 billion so far.

Source: VOV