Japanese firms rate Vietnam as top investment destination

09:19 | 04/03/2020 Investment

(VEN) - In 2019, Japan became the second biggest foreign investor in Vietnam (after the Republic of Korea) with 4,385 projects totaling more than US$59.33 billion in registered capital. Big Japanese names, including Toyota, Honda, Panasonic, Canon, FujiXerox, and Sumitomo, have succeeded in Vietnam with numerous large-scale projects.

japanese firms rate vietnam as top investment destination
Japanese investment in Vietnam keeps growing

Last year, foreign investment continued to be a bright spot on Vietnam’s economic landscape, totaling US$38 billion, including US$20.4 billion in disbursed capital. Japan became the second biggest foreign investor in Vietnam with 4,385 projects totaling more than US$59.33 billion in registered capital. Big Japanese names, including Toyota, Honda, Panasonic, Canon, FujiXerox, and Sumitomo, have succeeded in Vietnam with numerous large-scale projects.

Apart from industry, Japanese investors now have increasing presence in retail, finance and banking, and food, among other sectors in Vietnam. Giant Japanese retailers AEON and Uniqlo are present in the country, while Mizuho has purchased shares of Vietnam’s leading bank - Vietcombank, and Sumitomo Mitsui Banking has become a shareholder of Vietnam’s Eximbank.

According to a survey by NNA - a Japanese news agency, Japanese enterprises rate Vietnam as the most promising investment destination in Asia in 2020, surpassing India and other countries in Southeast Asia.

In 2020, the government of Vietnam is interested in improving the national competitiveness and renovating investment and business models with the goal of advancing 10 places on the investment environment index. Along with building a development strategy for the next 10 years, the government is submitting to the National Assembly the Law on Investment and the Law on Enterprises for revision, aiming to institutionalize Politburo Resolution 50-NQ/TW. In this regard, the government emphasizes that the foreign-invested economic sector is an important part of Vietnam’s economy, whose long-term development is encouraged and facilitated; and the state respects and protects the legitimate rights and interests of investors, and harmonizes interests of the state, investors and employees in enterprises.

At a recent Japanese-Vietnamese economic, tourism and labor forum, Deputy Prime Minister Vuong Dinh Hue emphasized that Vietnam is willing to create favorable conditions for investors, including Japanese businesses. The Vietnamese government wants Japan not only to become a leading investor but also the best investor in Vietnam, he said.

Vietnam is a member of the Mekong Sub-region that has agreed to cooperate with Japan in transport and energy infrastructure, soft institutional infrastructure, trade facilitation, investment, and digitization. These are the cores of bilateral cooperation in the future.

According to the Japan External Trade Organization (JETRO), 66 percent of Japanese enterprises in Vietnam made a profit in 2019, and 64 percent of them said they would expand their business in Vietnam.

Thu Phuong