Vietnam Still Attractive to Japanese Investors

Vietnam remains an attractive destination for Japanese companies to invest in and expand production, affirmed President of the Japan Management Association (JMA) Yoshio Tomisaka.

 

Young workforce, cheap labor, and political stability are Vietnam&rsquos outstanding advantages, he said in a speech to the 9 th JMA Group Global Seminar in Hanoi on July 3.

Chairman of the Vietnamese Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the seminar will be a chance for Vietnamese businesses to further improve their managerial ss and competitiveness for deeper international integration and boost cooperation with Japanese partners.

At the meeting, two successful Japanese companies in Vietnam, Acecook Vietnam and Canon Vietnam, disclosed a plan on investment expansion in the Southeast Asian country.

 

Acecook Vietnam is a leading instant noodle producer in Vietnam with eight plants and over 4,000 workers. It is now makes up 70 per cent of the local market share.

 

Meanwhile, Canon Vietnam operates three plants and plans to make Vietnam a link of its global supply chain. The company has set an ambitious target of ing US$1.2 billion export revenues this year.

 

The Japanese side also noted at the meeting that Vietnam should pay more attention to building infrastructure and developing human resources to lure more foreign investors.

 

A recent survey by the Japan External Trade Organization (JETRO) showed that up to 92.6 per cent of Japanese manufacturers in Vietnam said they plan to expand their investments in the country in the next two years.

 

The survey, which interviewed 1,745 Japanese firms operating in 11 countries and territories in Asia, also showed that 88 per cent of Japan&rsquos non-production companies plan to expand operations in the Southeast-Asian markets.

 

To date, Japan has injected US$9 billion in FDI in Vietnam, becoming the fourth largest foreign investors in Vietnam, behind South Korea, Singapore and Taiwan. However, it tops others in terms of capital disbursement with roughly US$5 billion, said Vietnam News Agency. (VNA)