Japanese businesses to choose Vietnam in the China-Plus-One strategy
Vietnam is chosen by a majority of Japanese businesses operating in Thailand and China as a place to locate their manufacturing facilities within the Thailand-Plus-One and China-Plus-One strategies thank to abundant labour resources and low costs, as well as the improved investment climate.
This information was heard by Hirotaka Yasuzumi, Managing Director of the Japan External Trade Organisation (JETRO) office in HCM City at the recent 2015 Vietnam-Japan trade and investment promotion forum in HCM City.
Recently, a delegation of 30 businesses from the Japan Business Federation (Keidanren) attended the 2015 Vietnam-Japan trade and investment promotion forum which was held in HCM City to explore the investment and business environment.
Participating at the forum, Senior Managing Director of Keidanren Mukuta Satochi said Vietnam is considered a gateway for Japan to enter the ASEAN market. Once the ASEAN Economic Community forms at the end of this year, Vietnam ’s role as a business venue in the global supply chain strategy will increase, he stated.
At the forum, according to Hirotaka Yasuzumi, Managing Director of the Japan External Trade Organisation (JETRO) office in HCM City a study by JETRO showed that Vietnam is chosen by most of Japanese enterprises operating in Thailand and China as a place to locate their manufacturing facilities within the Thailand-Plus-One and China-Plus-One strategies.
The Japanese business trend of shifting to a third country from China is increasing, mainly targeting ASEAN countries, especially Vietnam, he said.
Hirotaka added that the JETRO survey also reported that most enterprises have been restructuring their facilities abroad for two-three years while 595 out of the 3,471 firms involved in the survey plan to restructure in the next two-three years. About 780 projects are scheduled to change locations. Vietnam is considered to be the most attractive destination for Japanese businesses in the China-Plus-One strategy.
Through meeting with many Japanese companies, Hirotaka said abundant labour resources and low costs are among Vietnam’s attractive characteristics.
According to statistics from the Foreign Investment Agency under the Ministry of Planning and Investment, in the first seven months of this year, Japan was the fifth largest FDI investor in Vietnam with 176 new and 82 expanded projects with combined capital of 716 million USD.
Recently, a delegation of 30 businesses from the Japan Business Federation (Keidanren) attended the 2015 Vietnam-Japan trade and investment promotion forum which was held in HCM City to explore the investment and business environment.
Photo for illustration
|
At the forum, according to Hirotaka Yasuzumi, Managing Director of the Japan External Trade Organisation (JETRO) office in HCM City a study by JETRO showed that Vietnam is chosen by most of Japanese enterprises operating in Thailand and China as a place to locate their manufacturing facilities within the Thailand-Plus-One and China-Plus-One strategies.
The Japanese business trend of shifting to a third country from China is increasing, mainly targeting ASEAN countries, especially Vietnam, he said.
Hirotaka added that the JETRO survey also reported that most enterprises have been restructuring their facilities abroad for two-three years while 595 out of the 3,471 firms involved in the survey plan to restructure in the next two-three years. About 780 projects are scheduled to change locations. Vietnam is considered to be the most attractive destination for Japanese businesses in the China-Plus-One strategy.
Through meeting with many Japanese companies, Hirotaka said abundant labour resources and low costs are among Vietnam’s attractive characteristics.
According to statistics from the Foreign Investment Agency under the Ministry of Planning and Investment, in the first seven months of this year, Japan was the fifth largest FDI investor in Vietnam with 176 new and 82 expanded projects with combined capital of 716 million USD.
15:12, 2024/11/14
North-South high-speed railway to open up new economic opportunities
The government proposes a design speed of 350 km/h for the railway to ensure a modern, integrated, and forward-looking infrastructure appropriate to Vietnam’s geographical and economic conditions.
17:25, 2024/11/07
Prime Minister calls on China to pilot border economic cooperation zone
This economic cooperation zone is an initiative proposed by China and has been under negotiation with several countries, including Vietnam, since 2007.
17:29, 2024/07/23
State-owned corporations set to pilot offshore wind power projects
Private and foreign investors are currently not being considered for pilot projects due to unresolved legal and security issues.
06:12, 2024/07/17
AIIB ready to fund Hanoi’s urban railway projects
Hanoi expects the AIIB to assist with planning, implementation methods, and financing strategies to rapidly deploy metro projects.
15:33, 2024/07/02
S.Korea’s industrial conglomerates to expand investment activities in Vietnam
Prime Minister Pham Minh Chinh welcomed the proposals, which are consistent with Vietnam’s green growth strategy.
11:29, 2024/05/08
Intel boosts Vietnam’s semiconductor workforce for ambitious goals
Kim Huat Ooi, Vice President of Manufacturing, Supply Chain and Operations and General Manager of Intel Products Vietnam, spoke to The Hanoi Times about Vietnam's semiconductor ambitions and Intel's contribution to making the country a global manufacturing and R&D hub.
- Vietnam among top investment destinations for SEA investors
- Vietnam looks to support FDI firms as global minimum tax looms
- Factors unlocking Vietnam’s potential in FDI attraction: HSBC
- Opportunity at hand: Leveraging global minimum tax for FDI attraction
- Vietnam: Leading destination for sustainable investment
- Vietnam targets to draw investment in hi-tech industries: Prime Minister