VGP – About 60% of Japanese businesses plan to expand their future operations in Viet Nam, according to a survey conducted by the Japan External Trade Organisation (JETRO).
It is part of four major points Japanese firms are considering when investing in Viet Nam, according to the results of JETRO’s survey on the business situation of Japanese firms operating in Asia and Oceania in 2014.
Regarding the assessment of market expansion in Viet Nam, more than 60% of surveyed businesses in Japan said they want to continue to expand in Viet Nam as the country is considered an important investment destination in the region.
Despite the improvements in the Vietnamese investment environment, half of the surveyed Japanese enterprises consider the increasing labour cost and complicated administrative and tax procedures to be the major risks they face.
The Vietnamese Government has been called on to continue assisting domestic businesses to develop the support industry and increase their competitive edge in production cost, given the rate of using locally-produced components in Vietnam in 2014 only increased by 2.5 percent against the previous year.
The annual survey has been conducted since 1987 by the JETRO to understand the business activities of Japan-affiliated companies in Asia and Oceania, including Vietnam.
The surveyed firms operate in wide range sectors, including automobiles, machinery, chemical and pharmaceutical products, food, textiles, retail, transport, ICT and finance.
In an evaluation of the JETRO survey results at a recent meeting in Ha Noi, Minister of Planning and Investment Bui Quang Vinh said the survey will not only help the Japanese government but also regional governments to know about the opinions of Japanese firms.
In 2014, the Government of Viet Nam drastically improved the business and investment environment of Viet Nam with the revised Investment Law and amended Business Law, which were all approved by the National Assembly, he said.
However, the new laws will only take effect on July 1, 2015, so they were not reflected in the results of this survey, Vinh said.
By Vien Nhu
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