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Wednesday, June 19, 2024

Over half of Japanese firms want to expand operations in Vietnam: JETRO

The Saigon Times

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HCMC – More than 55% of Japanese enterprises in Vietnam are seeking to expand their operations in the country in the next one or two years, according to a survey conducted by the Japan External Trade Organization (JETRO).

JETRO has revealed the results of its survey conducted on 4,600 Japanese enterprises operating in 20 foreign markets, including 700 firms doing business in Vietnam, from August 25 to September 24 last year, when Vietnam applied strict mobility restrictions, news site VnExpress reported.

According to the survey, 42.5% of Japanese enterprises in Vietnam wanted to maintain their current scale.

Despite the long social distancing period, only 2% of Japanese firms in Vietnam sought to reduce their business scale and less than 0.5% of respondents planned to move to other countries.

At a press briefing on January 19, Takeo Nakajima, chief representative of JETRO Hanoi, said the proportion of Japanese enterprises wanting to expand their operations in Vietnam had fallen compared to the pre-pandemic period. However, this is also an issue of concern in many other markets.

Vietnam has advantages in its market scale, potential and laborer quality, according to the survey.

The poor laborer quality is a problem facing many Japanese enterprises in other markets; it is not an issue of Japanese firms in Vietnam, however. They highly valued the quality of laborers in Vietnam, Nakajima added.

Over the past few years, Japanese companies have spoken highly about the transparent law system and administrative procedures of Vietnam, but seemed to have had second thoughts over the past two years, probably due to Vietnam’s anti-pandemic policies.

Nakajima said Japanese enterprises expected an improvement in policies in the long term.

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