Vietnam Remains Attractive for Japanese Investors: JETRO
Vietnam remains the most attractive destination for Japanese firms, at least for the next two years, despite high office rentals, the Japan External Trade Organization (JETRO) said in a recent survey.
The survey released at Vietnam Business Forum held by the World Bank in Hanoi last week indicated that up to 85% of Japanese companies operating in Vietnam said that they plan to expand their business in the country in 2011.
This is the highest rate in the Southeast Asian region, compared to just 50.9% in Thailand and 31% in the Philippines, according to the JETRO survey.
The labor costs in Vietnam remain much lower than those in Thailand, India and Indonesia, which is an advantage to attract foreign firms, JETRO said, adding that the national boasts potentials for the development of telecommunications, software and construction sectors.
However, JETRO suggested that rentals for office space in Vietnam should be lower to draw more foreign investors, including Japanese firms.
Rentals for office building in Ho Chi Minh City and Hanoi are the highest in the Southeast Asian region with $57/s.q.m and $42/s.q.m, respectively, even higher the rentals of $46.4 in Singapore and $19.8 in Bangkok.
Japanese companies have to date poured $19.3 billion into 1,211 projects in Vietnam, ranking the 3rd among the countries and territories making investment in the country. (VNS)
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