Vietnam is 2nd most appealing region for Japanese investors: JETRO

Many Japanese enterprises intend to expand their investment in Vietnam, Takeo affirmed in a meeting with the Vietnamese minister of planning and investment, Nguyen Chi Dung, on February 6, 2023.

Vietnam’s economy continues to recover, and its business expansion intends to rank first in the Association of Southeast Asian Nations (ASEAN), as per JETRO’s survey on Japanese investment in Asia and Oceania 2022.

The percentage of Japanese enterprises operating in Vietnam forecast to be profitable in 2022 is 59.5 per cent, up 5.2 points compared to 2021, and those to be unprofitable is 20.8 per cent (down 7.8 points). The proportion of profitable businesses in Vietnam tends to increase and becomes higher than other countries in the ASEAN since 2016.

According to JETRO, the main reason for the improving business profits in Vietnam, especially the manufacturing and consumption industry, is due to the increase in exports and domestic consumption. Both manufacturing and non-manufacturing sectors are forecast to improve by 50 per cent in 2023.

In addition, 60 per cent of Japanese enterprises said they would expand their investment in Vietnam in the next one to two years, up 4.7 points from the previous year. It was the highest among Southeast Asian countries, after India (72.5 per cent) and Bangladesh (71.6 per cent).

Takeo expressed his hope that the ministry of planning and investment will soon remove difficulties and obstacles facing Japanese investors, creating confidence for them to feel secure in production and expand their business through dialogues in the time to come.

Fibre2Fashion News Desk (DP)