Vietnam Becoming Increasingly Attractive for Japanese Businesses

According to a survey by the Japan External Trade Organization, Vietnam has been the first choice for Japanese investors with such ideal investment conditions as socio-economic stability, low production cost, and huge workforce.

One major factor considered is low production cost. Another important factor is the high economic growth maintained in recent years with promising investment opportunities. As a result, Japanese investors tend to expand their investments or move from China to invest mainly in the production of transport and electronic parts. The Japan External Trade Organization predicts that Japanese investments will continue to increase and their first choice will be Vietnam.

 

A third factor is Vietnam’s attractive retail market. According to a market survey by AT Kearney (American leading consulting group), Vietnam has become the most attractive retail market ranking only after India and Russia. The “unprecedented” progress is due to the fact that half of the Vietnamese population is under 30 years old and fond of shopping. In addition, information technology and telecommunication are regarded as key for development in Vietnam, which strongly attracts foreign investors.

 

Representative of Japanese-ASEAN Centre (JAC) reaffirmed that Vietnam is a promising destination for Japanese investors. As a matter of fact, JAC has been asked by an increasing number of Japanese investors about the investment environment in Vietnam. 

 

For his part, Mr Kyoshi Ichikawa, senior adviser of Vietnam Ministry of Planning and Investment, confirmed the strong points of Vietnam as having socio-political stability, a huge and skilled workforce, and cheap labour. Besides, Vietnam and Japan share many similarities in culture and religion. However, Mr Ichikawa, also pointed out such constraints as complicated formalities.

 

Speaking on the occasion, Mr Phan Huu Thang, Head of Foreign Investment Agency (MPI), said that the legal framework for foreign investment in Vietnam will be further amended and Vietnam will comply with WTO commitments to attract more foreign investors to Vietnam. He also pointed out that in spite of the world financial and economic crisis in 2009, Vietnam continues to enjoy high economic growth. It is a good sign and foundation for stable development.