HCMC – The Government of Japan will support over 40 Japanese investment projects in Vietnam to diversify supply chains post Covid-19. Compared to other regional countries, Vietnam has the largest number of chosen investment projects.
This was announced by Nobuyuki Matsumoto, chief representative of the office of the Japan Trade Promotion Organization (JETRO) in HCMC, at a press conference on the organization of the METALEX Vietnam Exhibition and the Supporting Industry Exhibition 2022 held yesterday, August 5.
Since 2021, the Ministry of Economy, Trade and Industry of Japan has implemented an investment aid policy for Japanese firms abroad, aiming to diversify supply chains in the face of the pandemic, according to Matsumoto.
Of the 103 projects selected after five rounds of consideration, Vietnam has 41 projects, followed by Thailand with 25, Malaysia with 12 and Indonesia with 12.
Matsumoto said in the wake of stalled production activities due to supply chain disruptions, Vietnam has drawn the attention of Japanese businesses.
Last year, the survey by JETRO showed that 55.3% of the total number of businesses agreed to expand their business in Vietnam in the next one or two years, the highest rate in Southeast Asia.
Conversely, only 2.2% of businesses sought to scale down their business in Vietnam, the smallest number in Southeast Asia and the second smallest in Asia, after Pakistan.
Shifting to higher value-added products would be one of the major advancements in terms of the business orientations of Japanese companies, as well as sustaining their strength in multi-functional products, according to Matsumoto.
However, Vietnamese businesses have also faced several challenges. Matsumoto said domestic enterprises have to deal with issues including product quality and insufficient manufacturing processes, which hinders the procurement of components and materials in the country.
Vu Trong Tai, general director of RX Tradex Vietnam Company, the organizer of the METALEX Vietnam exhibition, said Vietnamese manufacturers should update new equipment and technologies, raise productivity, decrease consumables, improve human resources and enhance cooperation in industrial value chains to bolster their competitive advantage.
By doing so, domestic firms could tap the investment potential of international corporations and expand factories in Vietnam to enter global supply chains, according to Tai.
The Supporting Industry Exhibition 2022 is organized by RX Tradex Vietnam in collaboration with JETRO, the Investment and Trade Promotion Center of HCMC and the HCMC Centre for Supporting Industries Development. The event facilitates collaboration among industry enterprises between Vietnam and Japan.
The METALEX Vietnam Exhibition and the Supporting Industry Exhibition 2022 will take place from October 6 to 8 at the Saigon Exhibition and Convention Center in HCMC.
The event will provide opportunities for manufacturing, mechanical processing and supporting industries to connect with over 250 brands from 20 countries and regions.