JETRO: FDI capital flows into VN to soon be recovered in post-COVID-19 period

VGP - Chief Representative of the Japan External Trade Organization (JETRO) in Ha Noi Takeo Nakajima stated that the Foreign Direct Investment (FDI) poured into Viet Nam will be soon recovered as the COVID-19 pandemic is put under control.

September 09, 2020 6:37 PM GMT+7

The FDI capital flows into Viet Nam slow down due to the outbreaks of COVID-19, however, the capital flows will be soon resumed in the post-COVID-19 period.

Takeo Nakajima made that statement at the Viet Nam-Japan investment matching seminar on September 9.

The FDI capital flows into Viet Nam have slowed down due to the outbreaks of COVID-19, however, the capital flows will be soon resumed in the post-COVID-19 period, he said.

A lot of Japanese enterprises are facing difficulties due to COVID-19 that have led to the slowdown in the FDI capital from Japan, Nakajima said, adding that the JETRO survey shows that 65% of Japanese firms reported that their revenues sharply decreased due to COVID-19.

Meanwhile, he emphasized that only 5% of Japanese enterprises operating in Viet Nam announced the reduction in revenues exceeding 50%.

He spoke highly of the Vietnamese Government’s policies to attract and create favorable conditions for foreign investors, including those from Japan.

Viet Nam has also taken part in many free trade agreements and economic partnership agreements and gradually joined the global chain value, he confirmed.

Also all international financial organizations, including the International Monetary Fund, forecasted that Viet Nam will be the only nation in Southeast Asia gaining positive growth this year, Nakajima stressed.

Viet Nam-Japan investment matching seminar, held in form of online teleconference, was jointly organized by the ASEAN-Japan Centre (AJC), Viet Nam Trade Promotion Agency (VTPA) under the Ministry of Industry and Trade and representatives from three provinces of Vinh Phuc, Quang Ninh and Nghe An.

In 2018, Japan took the lead among 112 nations and territories investing in Viet Nam with US$8.59 billion, accounting for 24.2%.

As of the end of 2019, more than 2,000 Japanese firms launched operation in Viet Nam. Japan ranked second among investors in Viet Nam with registered capital worth US$59.3 billion, making up 16.7%.

By Thuy Dung