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Friday, June 14, 2024

Vietnam emerges as top investment destination for Japanese companies – survey

The Saigon Times

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HCMC – A recent survey conducted by the Japan External Trade Organization (JETRO) showed that Vietnam continues to be a highly attractive market for Japanese businesses.

Data indicated that nearly 57% of Japanese companies surveyed are planning to expand their operations in Vietnam within the next 1-2 years, positioning it second only to Laos in terms of growth interest among Southeast Asian countries.

The number of Japanese enterprises operating in Vietnam reached 2,000 in 2023, the highest among ASEAN countries.

About 50.4% of Japan’s investors anticipate an improvement in business profit expectations in 2024.

JETRO stated that Japanese companies remain strongly committed to promoting local procurement and anticipate further development in the supporting industry.

However, the survey showed challenges faced by Japanese companies in Vietnam, with 42.7% reporting a shortage of human resources. This shortage is particularly evident in the non-manufacturing sector (45.2%) and industries such as retail, information and communications, finance, insurance, education, and healthcare (over 60%).

Japanese companies pointed out risks related to investment, including lengthy processing times in administrative procedures.

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