With the Government’s open door policy, stable political environment andvast economic potential, many Japanese small-and medium-sizedenterprises (SMEs) have listed Vietnam as one of the most attractivedestinations for doing businesses in Southeast Asia, said radio theVoice of Vietnam (VOV) on July 22.
Approximately 30 percent ofJapanese firms have firmly considered Vietnam as top choice forexpanding their business activities overseas, VOV quoted AtsusukeKawada, Chief Representative of the Japan External Trade Organisation(JETRO) Office in Hanoi, as saying.
Vietnam’s investmentenvironment has been improving day by day. Provincial authorities havespent huge investment in building infrastructures in a bid to attractforeign businesses to their localities. They are also eager to offerattractive incentive packages to lure even highly demanding foreigninvestors to do business in their localities.
However, Vietnamshould remove quite a few of obstacles to attract more Japaneseinvestors, said Hirokazu Yamaoka, Director, Overseas Business SupportDivision under the JETRO.
Labour costs in some parts of thecountry are surging too rapidly (around 20 percent annually). Yet therise in labour costs did not go together with improved productivity.This has led to increase the prices of products, negatively affectingcompetitiveness in the global marketplace, Yamaoka said.
Thisphenomenon is leading many Japanese investors to pay more attention tonewly emerging markets like Cambodia and Myanmar and, if wages continueto rise too rapidly, it will be more difficult to call on foreigninvestment, Hirokazu said.
Some Japanese businesses are alsofinding it exceedingly difficult and costly to import input and otherraw materials from outside the country as the local support industry isfledgling.
Reliance on imported raw materials has brought inincreased production costs and reduced business competitiveness. Thissituation should be fixed. Meanwhile, a dministrative procedures needto be simplified.
Recently, a delegation comprised of 26 JapaneseSMEs operating in the support industry made a fact-finding tour ofVietnamese localities to seek investment opportunities. These businesseswhich supply products to major groups are facing numerous difficultiesat home, such as increased production costs and shrinking market. As aresult, they are eying their investment overseas.
At theend of April, 2014, Japan was the largest foreign investor in Vietnamwith 2,266 projects totaling 35.51 billion USD, according to the ForeignInvestment Agency.
Japanese firms are operating in 18 fields,mainly the processing and manufacturing industry (1,227 projects worth29.9 billion USD), real estate (30 projects worth 1.4 billion USD) andconstruction (56 projects worth 1.06 billion USD).
Investment isspread throughout 49 provinces and cities. Thanh Hoa province tops thelist with 9 projects capitalised at 9.68 billion USD, followed by BinhDuong, Hanoi, Ho Chi Minh City, Hai Phong and Dong Nai.-VNA
Approximately 30 percent ofJapanese firms have firmly considered Vietnam as top choice forexpanding their business activities overseas, VOV quoted AtsusukeKawada, Chief Representative of the Japan External Trade Organisation(JETRO) Office in Hanoi, as saying.
Vietnam’s investmentenvironment has been improving day by day. Provincial authorities havespent huge investment in building infrastructures in a bid to attractforeign businesses to their localities. They are also eager to offerattractive incentive packages to lure even highly demanding foreigninvestors to do business in their localities.
However, Vietnamshould remove quite a few of obstacles to attract more Japaneseinvestors, said Hirokazu Yamaoka, Director, Overseas Business SupportDivision under the JETRO.
Labour costs in some parts of thecountry are surging too rapidly (around 20 percent annually). Yet therise in labour costs did not go together with improved productivity.This has led to increase the prices of products, negatively affectingcompetitiveness in the global marketplace, Yamaoka said.
Thisphenomenon is leading many Japanese investors to pay more attention tonewly emerging markets like Cambodia and Myanmar and, if wages continueto rise too rapidly, it will be more difficult to call on foreigninvestment, Hirokazu said.
Some Japanese businesses are alsofinding it exceedingly difficult and costly to import input and otherraw materials from outside the country as the local support industry isfledgling.
Reliance on imported raw materials has brought inincreased production costs and reduced business competitiveness. Thissituation should be fixed. Meanwhile, a dministrative procedures needto be simplified.
Recently, a delegation comprised of 26 JapaneseSMEs operating in the support industry made a fact-finding tour ofVietnamese localities to seek investment opportunities. These businesseswhich supply products to major groups are facing numerous difficultiesat home, such as increased production costs and shrinking market. As aresult, they are eying their investment overseas.
At theend of April, 2014, Japan was the largest foreign investor in Vietnamwith 2,266 projects totaling 35.51 billion USD, according to the ForeignInvestment Agency.
Japanese firms are operating in 18 fields,mainly the processing and manufacturing industry (1,227 projects worth29.9 billion USD), real estate (30 projects worth 1.4 billion USD) andconstruction (56 projects worth 1.06 billion USD).
Investment isspread throughout 49 provinces and cities. Thanh Hoa province tops thelist with 9 projects capitalised at 9.68 billion USD, followed by BinhDuong, Hanoi, Ho Chi Minh City, Hai Phong and Dong Nai.-VNA
