Vietnam tops ASEAN in luring Japanese investment

Vietnamese workers at a construction site in Hanoi. Photo by Reuters/Kham

Almost 1,800 Japanese businesses have invested in Vietnam in the first half of the year, the highest among ASEAN countries.

This number accounts for 24.6 percent of total number of Japanese firms investing in ASEAN countries, said Keiichi Kadowaki, chairman of Japanese Chamber of Commerce and Industry in ASEAN (FJCCIA).

He was speaking at the 11th Dialogue between the Secretary General of ASEAN and the Federation of the Japanese Chamber of Commerce and Industry in ASEAN (FJCCIA) in Ho Chi Minh City on Monday.

Japan and Vietnam also signed 36 memorandums of understanding worth $21 billion last month.

“This shows that Vietnam is becoming more attractive to Japanese firms,” Kadowaki said.

Vietnam’s open business environment and robust economic growth of 5-6 percent each year has increased its attractiveness in recent years, he added.

Up to 70 percent of Japanese firms in Vietnam plan to expand their business in the country, as most of them believe that revenue will continue to increase, according to a recent survey by the Japan External Trade Organization (JETRO).

Over 65 percent of surveyed firms said they have been profitable in Vietnam.

Japan was the fourth largest trading partner of Vietnam last year, with a total turnover of almost $34 billion, up 13.8 percent from 2016, according to Vietnam Customs.