Many Japanese investors “rush” into Vietnam
VietReader 11-09-2020, 19:10

Many Japanese investors “rush” into Vietnam
The webinar

Speaking at the webinar “Vietnam – Japan Investment Connection 2020”,jointly held by the Trade Promotion Agency (Ministry of Industry and Trade) and the Vietnam Trade Office in Japan, Trade Promotion Organization Japan (JETRO) and the provinces Vinh Phuc, Quang Ninh and Nghe An on September 9, Director of Trade Promotion Department Vu Ba Phu said Japan is always one of the top countries with large investment in Vietnam in both the number of projects and total investment capital.

The Japanese investment wave into Vietnam is constantly increasing in both the number of enterprises and investment capital. Specifically, in 2018, Japan was top of counties investing in Vietnam with US$8.59 billion, accounting for 24.2% of the total investment capital among 112 countries and territories investing in Vietnam.

By the end of 2019, more than 2,000 Japanese enterprises invested in Vietnam and FDI inflows from Japan continued to increase strongly.

“Accumulated FDI attraction by the end of 2019, Japan ranked second with total registered capital of US$59.3 billion, accounting for 16.7%. This shows that Japan is always an important investment partner after 47 years of establishing diplomatic relations,” Mr. Vu Ba Phu said.

JETRO’s survey of Japanese enterprises investing in Asia and Oceania in February 2020 reported that 63.9% of Japanese enterprises doing business in Vietnam would continue to expand their operations. This is the highest rate in ASEANand 3rd in the Asia and Oceania region.

Vietnam is defining the target of focusing on attracting and cooperating with foreign investment and considering quality, technology and environmental protection as the main assessment criterion. Photo: Internet

Not only large enterprises and corporations, but now Japanese small and medium enterprises have also promoted their investment in Vietnam.

Notably, Japanese enterprises are going to invest in other localities instead of concentrating only in Hanoi and Ho Chi Minh City as before.According to many experts, the Vietnamese market has great potential in attracting Japanese enterprises to invest in business and production expansion.

In fact, the global Covid-19 pandemic has made global trade in goods face many difficulties and significantly affected the production and business activities of enterprises.

The Covid-19 pandemic has seriously affected most economies in the world, including Vietnam’s major trading partners such as the US, the EU, Japan and ASEAN. Vietnam’s import-export market is significantly affected by this crisis.

In the current context, the leader of the Trade Promotion Agency said that promoting economic cooperation between Vietnam and Japan is increasingly important.

The increase in attracting Japanese investment in the near future, together with the measures to encourage technology transfer, will help improve the technology level and production capacity of Vietnam, contributing to realizing the objective of helpingVietnam become a modern industrialized country.

In the near future, Vietnam will continue to improve institutions and policies to improve the quality and efficiency of foreign investment cooperation with the aim of concentrating on attracting and cooperating with foreign investment selectively, considering quality, efficiency, technology and environmental protection as the main assessment criterion.

Also, Vietnam prioritizes projects with advanced technology, modern administration, high added value, spillover effects, and global production and supply chain connection.

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“This is also the strength of Japanese enterprises. This investment cooperation will be complementary to each other and develop together. The Trade Promotion Agency is always ready to support and facilitate Japanese enterprises to expand investment and business relations with Vietnam in the future,” Mr. Vu Ba Phu said.

The World Trade Organization (WTO) has warned that the global crisis caused by the Covid-19 pandemic threatens to cause international trade in 2020 to drop to a record level. The impact of this crisis is likely to far exceed the global financial crisis of 2008-2009.

It is estimated that global trading volume could decline 13% – 32% in 2020, after reaching a 2.9% increase in 2018 and a 0.1% decrease in 2019.

By Uyen Nhu/ Huyen Trang