Vietnam remains appealing destination for Japanese investors: survey

This proportion is up 4.7 percentage points from the previous year, Vietnam News Agency quoted a survey on Japanese investment in Asia and Oceania 2022 by the Japan External Trade Organization (JETRO) in Vietnam.

In a similar survey in China, the number of Japanese enterprises that have plans to expand their investment in China in the next one to two years is only 33.4%, the lowest level since the survey started in 2007.

The percentage of Japanese enterprises operating in Vietnam forecast to be profitable in 2022 is 59.5%, up 5.3 percentage points compared to 2021.

According to JETRO, the main reason for the improving business profits in Vietnam, in both manufacturing and non-manufacturing sectors, is due to the country’s strong socio-economic recovery from the pandemic.

Many firms said business this year improved compared to last year largely due to a strong recovery after the pandemic, especially in the consumer goods manufacturing industry and the service industry.

However, some businesses said they faced difficulties in purchasing raw materials due to increased labor costs and logistics costs, according to the survey.

Regarding prospects in 2023, 53.6% of surveyed Japanese businesses answered "improved", the highest in Asia and Oceania.

Meanwhile, 6.9% of surveyed Japanese businesses answered "worse" in terms of business profit prospects compared to 2022.

The survey was conducted in 20 countries and territories in Asia and Oceania and received responses from 603 Japanese enterprises operating in Vietnam.