Japanese firms shift investment to Vietnam
(VOV) - Vietnam has surpassed China as a prime overseas investment destination of Japanese business enterprises, according to a recent survey by Teikoku Databank released on October 16.
Teikoku Databank, a company specializing in collecting business information on companies in Japan reported 10.9% of 23,000 Japanese enterprises surveyed in September consider Vietnam the best investment destination abroad while the selection rate for China was just 6.9%.
Japanese firms have a keen interest in such areas as interior decoration, garments and textiles, information and technology in Vietnam. They chose Vietnam primarily due to low costs and its highly skilled young labour force.
The survey shows Vietnam ranked fourth in the list of the safe markets in which Japanese business enterprises have attached the most importance to, trailing China, the US and Thailand.
President of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said this is good news. The most important thing for Vietnam is to maintain a positive image in the eyes of Japanese investors and foreign investors alike, Loc said.
Recently, the Japan External Trade Organisation (JETRO) in Hanoi said up to 30% of Japanese enterprises are investing abroad and regard Vietnam as the primary option.
According to a JETRO report in February, Vietnam has become the top nation attracting Japanese investment, surpassing other rivals- Indonesia, Thailand and the Philippines.
Up to 70 Japanese firms in Vietnam unveiled their business expansion plans in 2014.