Viet Nam rated as second most attractive investment destination: JETRO
VGP - Japanese businesses consider Viet Nam as the second most attractive and potential investment destination, only behind the U.S.
Nobuyuki Matsumoto, chief representative of JETRO in Ho Chi Minh City - Photo: VGP/Huy Thang
A survey on the status of Japanese firms investing abroad in the fiscal year 2023 was announced on January 26 by the Japan Trade Promotion Organization (JETRO) in Viet Nam.
Accordingly, the rate of Japanese firms expecting profit from their business in Viet Nam in 2023 was 54.3 percent, some 6.6 percentage points lower than the Southeast Asian average.
Around 50.4 percent of surveyed Japanese companies said profits would improve in 2024.
Among Southeast Asian countries, 56.7 percent of Japanese companies target Viet Nam for business expansion in the next 1-2 years, ranking behind Laos in regional growth interest.
Regarding sectors, 47.1 percent of surveyed Japanese manufacturing firms wanted to expand operations in Viet Nam, and the respective rates for non-manufacturing companies and retailers were 65.5 percent and 100 percent.
More Japanese businesses are investing to expand and dominate the Vietnamese market. Information technology businesses are tending to invest more, said Nobuyuki Matsumoto, chief representative of JETRO in Ho Chi Minh City.
Japanese businesses evaluate the attractiveness of Viet Nam as a growing and potential market in the future. Its other strength is the stable socio-political situation and cheap labor costs, he added.
Currently, more than 2,000 Japanese enterprises are operating in Viet Nam, the highest number compared to other nation in ASEAN.
According to the General Statistics Office, Japanese investors poured US$6.57 billion into Viet Nam, accounting for 17.9 percent of total FDI in 2023, an increase of 37.3 percent against 2022, ranking second among countries and territories investing in the country./.
