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Japan Boosts Investment in Vietnam

Japanese investors are heading to Vietnam as the most attractive business environment, as Thailand is struggling with instability of political system and China is becoming less attractive with increasing labour cost.

Vietnam is a potential market, promising investment opportunities with high productivity, more profitability, and strong stability. In 2013, Japan flowed US$6.5 billion to China, less than half investment capital of last year 2012. Similarly, the amount of money Japan invested in ThaiLand dropped to US$2.5 billion.

On the other hand, Vietnam nowadays is becoming more and more attractive to Japanese investors. It could be said that in 2010, the capital from Japan was just about US$169 million, comparing to the amount of US$4.45 billion in 2013. It also included a number of high-profile projects backed by Japanese companies such as the project Nghi Son petrochemical oil refinery reached to US$2.8 billion, the Bridgestone’s project valued US$650 million and the Panasonic Industrial Devices project estimated US$175 million.

The major strength of Vietnam includes a peaceful environment and low cost labor force," said Atsusuke Kawada, the Chief Executive of Japan External Trade Organization (JETRO). “In Vietnam, Japanese could be able to find somethings that we cannot do the same in other countries. Vietnamese are very diligent and hardworking, which have reflected in the numbers of workers’ days-off in comparison with other countries,” Kawada added. “Besides, the recruitment process in Vietnam is also easier for employers so we do not need to pay high salary for workers.”

However, to maintain long-term relationship with Japanese investors, there will be a lot of things that need more government efforts, in order to help Vietnam simply access, easily operate and gain more profits.

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