Vietnam became Japanese investors favorite market in ASEAN
With Japan becoming the most active investor in Vietnam, the Southeast Asian country became the number 1 investment choice of Japanese businesses.
[Japan’s investments in the first half (H1) of 2018 reached $6.47 billion, which accounts for almost ⅓ of total investments in Vietnam during this period]
According to Keiichi Kadowaki, chairman of Japanese Chamber of Commerce and Industry in ASEAN*, during H1 of 2018, almost 1,800 Japanese businesses have invested in Vietnam. This number accounts for more than 24% of total Japanese investments in ASEAN countries.
In addition to strong investment inflow, Japan and Vietnam signed 36 memorandums of understanding in June 2018, worth in total $21 billion.
According to Mr. Kadowaki, Vietnam’s open business environment, and strong economic growth, incentivised Japanese investors to look more closely into the country’s economy.
In addition, new Japanese companies coming to Vietnam can be optimistic about their prospects in the new market due to the overall satisfaction on Japanese businesses currently operating in Vietnam. According to a recent survey implemented by Japanese Trade Organization (JETRO), the number of profitable Japanese-invested companies in Vietnam from 62.8% in 2016 to 65.1% in 2017. Also, 70% of the surveyed companies are planning to increase their investment in Vietnam.
According to the data of Vietnam Customs, Japan was Vietnam’s fourth largest trading partner, with trade amounting to $34 billion (a 13.8% increase compared to 2016).
*ASEAN - Association of Southeast Asian Nations