JETRO: 70 % of Japanese companies wish to expand in VN

Nearly 70% of Japanese enterprises in Viet Nam plan to expand their business and continue to view the country as an important investment destinationin future, an increase of 3% 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 Viet Nam including the advantages of the investment environment, political and social stability, and the affordable cost of labour, and others.

Japanese businesses appreciate the political and social stability in Viet Nam and consider it the greatest advantage in its investment environment.

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 Viet Nam, the survey says.

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

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.

The survey received valid responses from 4,630 Japanese enterprises in 20 countries and territories around the world, including 652 Japanese enterprises in the country.

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

                                                                                                                        By Vien Nhu