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More Opportunities for Japanese Companies in Vietnam

According to the Ministry of Planning and Investment, Japan has 2,237 projects and total registered capital of US$35.38 billion of investment in Vietnam up to now. That makes Japan the leading country in terms of Foreign Direct Investment (FDI) in Vietnam. Almost the projects from Japan have advanced technology and they have research in depth about Vietnamese policies and laws. Many Japanese large corporations have already been in Vietnam, including Toyota, Canon, Honda, and so on.

Japanese companies have invested in 48 out of 62 provinces and centrally-controlled cities in Vietnam. Thanh Hoa is the leading province receiving FDI from Japan. The capital investment is up to US$ 9.67 billion and that accounts for 27.3 percent of total FDI of Japan in Vietnam. Binh Duong Province ranks 2nd, with US$4.18 billion and accounting for 11.8 percent.

Though being the biggest investor in Vietnam, Japanese companies still have a lot of opportunities to invest more into the country market. Since Vietnam and Japan have political and diplomatic relations for more than 40 years, the similarity of culture, society have created very good conditions for Japanese companies investing in Vietnam. In other words, Japanese enterprises always see Vietnam as one of the most attractive countries for potential investment.

“Vietnam is extremely friendly for foreign investors and the wage levels are acceptable,” says Shoji Kono, the Corporate Vice President at Tamron, planning to build a Y1bn (US$13 million) factory near Hanoi and eventually hiring 2,000 employees.

As Japan External Trade Organization (JETRO) reported on Japanese investment trends in Vietnam, 60 percent of Japanese businesses in Vietnam have made profit and over 70 percent of them are planning to expand business in Vietnam in comparison with 66.4 percent in Indonesia, 66.2 percent in Thailand, 58.1 percent in the Philippines, 54.2 percent in China and 51.6 percent in Malaysia. This shows that Vietnam continues to be the most potential market not only for Japan but also other foreign nations.

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