Seventy percent of Japanese enterprises wish to expand business in Vietnam

14:28 | 08/02/2018 Economy

Approximately 70 pct of Japanese enterprises operating in Vietnam intend to expand their operations in future, an increase of 3 pct compared to 2016, according to a JETRO survey.

70 percent of Japanese enterprises intend to expand their operations in Vietnam - Illustrative image

The survey covers the operations of Japanese enterprises in Asia and Oceania and its findings were announced by the Japan External Trade Organisation (JETRO) in Ho Chi Minh City on February 6.

Chief Representative of JETRO Office in Ho Chi Minh City Koji Takimoto said that the survey received valid responses from 4,630 Japanese enterprises in 20 countries and territories around the world, including 652 Japanese enterprises in Vietnam.

The survey showed that 65.1 pct of Japanese enterprises operating in Vietnam recorded a profit in 2017, up 2.3 percentage points from the previous year.

In addition, about 70 pct of Japanese enterprises expressed their intentions to expand their business in Vietnam, a slight increase compared to 2016. The rate is relatively high compared to other countries, indicating the attractiveness of the Vietnamese market.

Japanese enterprises mentioned key factors for their developments in Vietnam including the advantages of the investment environment, political and social stability, and the affordable cost of labor, among others.

However, the language barriers, incomplete legal system, complicated tax procedures, and limited sources of materials and components remain key obstacles for Japanese enterprises operating in Vietnam, the survey says.

Japanese enterprises invested a record high of more than US$9.11 billion in Vietnam in 2017, in areas mostly similar to 2016.

Theo NDO