Vietnam continues to attract foreign investors
A recent survey carried out by the Japan External Trade Organization (JETRO) revealed great business performance of Japanese enterprises in Vietnam in 2016 and a bright future for Vietnam’s investment conditions.
66.6% of Japanese businesses investing in Vietnam are planning to expand their business and continue to consider Vietnam as an important investment destination. This is the result from the ‘Survey on the status of Japanese enterprises in Vietnam’ which was recently announced by JETRO. Overall, the survey showed a positive view of the Japanese business community on investment conditions in Vietnam.
According to the survey, almost 90% of the Japanese enterprises believed that the main reason to expand the business in Vietnam is to increase revenues, while 46% based their reasoning on the ‘high growth potentials’. Particularly, 63% of the participants reported that they were profitable in 2016, up by 4% as compared to the previous year, while the figure for those who made loss only accounted for 25%.
The better result in business activities as compared to the previous year was only a part of the reasons why the Japanese enterprises decided to expand their business. JETRO’s survey highlighted that, Vietnam’s ranking in terms of business risks is declining, which suggests improving investment conditions. The only risk factor that are unfavorable for Vietnam is the increase of labor cost. However, JETRO also noted that Vietnam ranking in this factor is not high as compared to other nations in the Asia – Pacific region.
With a bright prospect and reduction in the level of risk, Vietnam continues to be a favorite choice for the Japanese enterprises in specific and for the foreign investors in general in the upcoming years.
Source: 1, 2