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Friday, June 21, 2024

Half of Japanese firms in Vietnam expect profit this year

The Saigon Times

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HCMC – More than 50% of Japanese companies active in Vietnam are optimistic about turning a profit this year, according to a recent report by the Japan External Trade Organization (JETRO).

A survey conducted by JETRO showed that among 850 Japanese firms conducting business in Vietnam, 54.3% of them expressed confidence in their profitability for the current year. This percentage surpasses that of Japanese companies in neighboring countries, with 44.4% in Laos, 43.9% in Cambodia, and 32.9% in Myanmar anticipating profit.

However, compared to their counterparts in other ASEAN countries, such as Indonesia, Malaysia, Singapore, Thailand, the Philippines, and Malaysia, the percentage of Japanese businesses in Vietnam showing optimism about their business results is lower.

In Indonesia, for instance, 71.4% of Japanese firms believe they will achieve profits this year, marking the highest figure among the surveyed countries. Similarly, 67.6% of Japanese companies in Malaysia and Singapore share this positive outlook, while the percentage of Japanese businesses with such expectations is 63% in Thailand and 56.5% in the Philippines

JETRO’s report also indicated that the expectations of Japanese companies in Vietnam are 6.6 percentage points below the average for the ASEAN region.

Around 32% of the respondents who anticipate profits in Vietnam believed that their profits will improve although this figure is down by 15.6 percentage points compared to the previous year. This optimistic outlook for profit increase is attributed to the growth in exports of manufactured products and increased domestic demand in the non-manufacturing sector.

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