Vietnam market big enough for Japanese business ambitions: PM

By Dat Nguyen September 8, 2020 | 02:08 am PT

Workers assemble cars in a factory of Toyota Vietnam in the northern province of Vinh Phuc. Photo courtesy of Toyota Vietnam.

The Vietnam market is big enough for Japanese companies to implement ambitious investment plans and shift supply chains, says PM Nguyen Xuan Phuc.

Through Vietnam, Japanese companies can access the ASEAN bloc with a population of nearly 650 million, he said at a Monday meeting with 15 Japanese companies that plan to expand their business in Vietnam.

These 15 companies are part of 87 companies that the Japanese government is paying to shift production out of China.

Japanese ambassador to Vietnam Yamada Takio said that many Japanese investors are interested in Vietnam as a "new normal" investment destination amidst the ongoing Covid-19 pandemic.

He proposed that Vietnam resumes travel between the two countries and improves the disbursement of public funds for major projects to attract more foreign investors and increase the country’s credit ratings.

Representatives of the Japan Chamber of Commerce and Industry (JCCI) suggested that Vietnam creates an incentive mechanism for infrastructure construction using the public-private partnership model and allows Japanese companies to increase ownership in state-owned corporations.

As big Japanese companies often get supplies from smaller ones, the JCCI proposed that Vietnam attracts the whole chain to the country instead of only inviting key companies.

Japan was the fourth largest foreign direct investor in Vietnam in the first eight months of this year with a total registered capital of $1.64 billion, behind Singapore, South Korea and mainland China.