(VOVworld) – A new wave of Japanese investment will be made in Vietnam as Japanese businesses are turning their eyes to the Vietnamese market. Vietnam is an attractive destination for Japanese enterprises and Japan is Vietnam’s biggest foreign investor. This is what Japanese investors are saying at forums and seminars on economic cooperation between the two countries.
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| PM Nguyen Tan Dung meets with Japanese Economic and Fiscal Policy Minister Amari Akira. Photo: VNA |
Vietnam and Japan have witnessed remarkable progress in trade activities in recent years. This year the two will celebrate the 40th anniversary of their bilateral diplomatic ties - a firm foundation for economic cooperation.
According to a survey by the Japan External Trade Organization, JETRO, two-way trade turnover has grown. Vietnam’s exports to Japan earned 13 million USD last year. Vietnam’s main imports from Japan, fabric and automobile parts were worth more than 11 million USD. By the end of last month, Japan had invested in 1,990 projects with a total registered capital of 33 billion USD, making it the biggest direct investor in Vietnam.
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A section of the new National Highway 3, the first Japanese-funded project, linking the capital city of Hanoi and the northern province of Thai Nguyen opened for traffic on July 13
(Photo: qdnd.vn) |
Motonobu Sato, President of the Association of Japanese Enterprises in Vietnam, said as Japan thinks “Vietnam is Japan’s partner and Japan needs Vietnam and also Vietnam needs Japan. That’s why Japan’s trying to accelerate investment more in Vietnam. Japan is a developed country but cannot live alone. We are partners. Vietnam cannot live alone. We’re seeking partners. This is very important. We have to.”
Despite global economic difficulties, more and more Japanese enterprises have opened offices or branches in Vietnam, mainly in Hanoi. The Japanese Business Association in Vietnam has 1,100 member companies and the figure is rising.
A JETRO survey on the performance of Japanese enterprises in the Asia-Pacific region showed that 65.9% of Japanese companies prefer Vietnam for future investment. This means they believe in Vietnam’s investment environment. Shinichi Wakita, Director of Panasonic in Vietnam, said “the Vietnamese government has enhanced the environment for FDI and received a lot of investment from investors. It was very good. Thus the economic environment has changed so fast. Vietnam has not only just given incentives or prepared infrastructure, but created flexibility for enterprises. That’s good to motivate the enterprises to invest further in doing business in Vietnam. We have been doing business in manufacturing, but the company is planning to expand the business in details, eco-marts, or optimization. We are also changing our business itself as it’s a very potential market to grow.”
Because of Vietnam’s stable political climate and abundant human resources, Japanese investors consider IT, software, and chemical and medical products as high-potential sectors. Vietnam and Japan should work together more closely to boost the development of auxiliary industries and create a transparent business environment in which enterprises can grow.
Le Phuong