Vietnam viewed as good destination in SEA by Japanese investors

VOV.VN - The nation has been chosen among a range of leading Southeast Asian destinations by Japanese investors, according to Nakajima Takeo, chief representative of the Japan External Trade Organisation (JETRO) in Hanoi.

Moving forward Vietnam's population is anticipated to reach 106 million by 2050, whilst a growing middle class will turn the Vietnamese market into a favourable one for retail businesses, according to JETRO.

Torben Minko, vice chairman of the European Chamber of Commerce in Vietnam (EuroCham), said that European firms remain confident on the country’s efforts to prevent and control the spread of the novel coronavirus (COVID-19) pandemic. This can be seen as industrial parks maintain operations, the number of laid-off workers is kept to a minimum, and the supply chain is maintained.

A recent survey conducted by EuroCham revealed that the Business Climate Index (BCI) hit 73.9 points during the first quarter of the year, the highest level since Q3 of 2019, before the pandemic initially broke out.

When asked about the prospects of the Vietnamese business environment moving into the next quarter, 67% predicted it would be either “excellent” or “good”, marking a 12% increase compared to the previous survey.

Furthermore, Alain Cany, chairman of EuroCham, said that while COVID-19 wreaks havoc in countries worldwide, Vietnam can be certain that firms can operate their business locally without facing any interruptions.

For her part, Michele Wee, chief executive officer at Standard Chartered Bank Vietnam, said that the foreign direct investment (FDI) influx to the nation will be maintained ahead in the medium term.

The country posted a GDP growth rate of 2.91% last year, thereby being among the economies with the highest level of economic expansion.

Foreign investors also poured roughly US$14 billion into the country as of May 20, an annual rise of 0.8% according to figures given the Ministry of Planning and Investment.

Disbursed FDI in the nation reached US$7.15 billion in the first five months of the year, representing an increase of 6.7% compared to the same period from last year.

This comes following global credit rating agencies such as Moody’s, S&P, and Fitch recently raising the Vietnamese outlook to “positive”.