JETRO: Japanese firms intend to expand business in Vietnam
Over 60% of Japanese firms in Vietnam have plans to expand their business, according to Atsusuke Kawada, head of the Hanoi office of the Japan External Trade Organisation (JETRO).
The survey examined business operation of Japanese companies in Asia and Oceania in 2016. It was carried out in Vietnam in October and November 2016, involving 639 valid respondents.
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| Vietnamese firms talk with Japanese firms |
Over 60% of the responding firms said they earned profits from investment in Vietnam (up 4 percentage point from 2015), while 25.1% reported loss (up 1.1 percentage points).
Besides, 80% said they expanded their business prompted by revenue increases while 63% of firms in non-manufacturing industries cited “high growth potential” as reasons for their expansion plans.
Vietnam’s investment environment is being improved, according to many businesses.
However, 58.5% of them said the labour cost was increasing, while around 40% considered incomplete infrastructure facilities and complicated taxation procedure risks.
was ranked fourth among 15 nations with underdeveloped support industry, according to 34.9% of the surveyed firms.
Over 60% complained about increasing salary for local employees and difficulties in procurement of raw materials and parts locally.
The rate of applying Free Trade Agreement (FTA) and Economic Partnership Agreement (EPA) among Japanese firms in Vietnam reaches 47.2%, up 2.2 percentage points from the previous year.
