JETRO: 70 pct of Japanese firms want to expand business in Vietnam
Updated : Friday, February 09, 2018 9:02 AM (GMT+0700)

 Accordingto the latest survey conducted by the Japanese External Trade Organisation(JETRO), up to 70 percent of Japanese businesses said they want to expandoperations in Vietnam, a year-on-year rise of 10 percent.

 
Up to 70 percent of Japanese businesses said they want to expand operations in Vietnam
- Illustrative image. Source: VNA

The survey revealed thatmore than two-thirds of the 652 Japanese enterprises operating in Vietnam haveexpansion plans, mainly due to the country’s rising revenue and high growthpotential.

Hironobu Kitagawa, chief representativeof JETRO in Hanoi, said the figure is higher than in other regional countries,indicating Vietnam continues to be an attractive investment destination.

The survey also showed that65.1 percent of Japanese companies recorded profits in Vietnam last year, while19.4 percent reported losses.

Vietnam is attractive toJapanese businesses thanks to market size and growth potential as well associo-political stability and low labour costs.

However, Japanese firmssuggested Vietnam tackle major issues such as rising labour costs, incompletelegal framework and vague implementation, and complicated tax andadministrative procedures.

Despites these shortcomings,the JETRO chief representative believed that Vietnam remains an attractivedestination for Japanese firms.

With current investmenttrends, businesses are likely to invest in consumption products, services andretail in 2018 and beyond, he said.

JETRO also pledged tosupport Vietnamese firms who want to invest in Japan, he noted.

Source:VNA

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