|Illustrative image (Source: VNA)
At the Mergers & Acquisitions Forum 2019 that took place in Ho Chi Minh City in early August, Tamotsu Majima, senior director of Recof Japan, said that transactions of Japanese firms with Vietnam reached a record figure, with 21 transactions in the first seven months of 2019.
A report issued by the Japan External Trade Organisation (JETRO) in early 2019 showed that 65.3 percent of 787 Japanese enterprises in Vietnam enjoyed high profits in 2018.
The localisation ratio of the firms rose from 23.7 percent in 2008 to 36.3 percent in 2018, showing their commitments for long-term operations in Vietnam, according to the report.
Takimoto Koji, JETRO Chief Representative in HCM City, noted that in 2018, Japan was the biggest foreign investors in Vietnam with combined registered capital of 7.98 billion USD in 630 projects.
As many as 70 percent of Japanese companies in Vietnam said that they will expand their operations in Vietnam in 2019, mostly in the manufacturing, trade, service, retail and real estate sectors, he said.
Koji revealed that on September 11, a delegation of 47 Japanese businesses in fisheries, manufacturing, wine, functional food, breeding, and confectionary will visit Vietnam to seek partners.
Japanese companies are focusing on mergers and acquisitions. According to the Ministry of Industry and Trade, of 755 million USD of Japanese investment in the first seven months of this year, 374 million USD was poured into M&A deals.
Masahiro Kotaka, CEO of KPMG Japan, said that the Vietnamese and Japanese economy are getting closer, giving more chances for businesses of both sides to foster their partnerships.
At the M&A Forum 2019, Japanese firms also expressed their belief that the flow of Japanese investment in Vietnam will continue to rise in the coming time.
Due to the fierce competition from investors from other Asian countries in Vietnam, they should work harder to gain successes in the Vietnamese market, Kotaka stressed.