Japanese SMEs make inroads into Vietnam
09:34, 2015/09/16
A delegation of small- and medium-sized enterprises (SMEs) from Japan’s Ehime prefecture will tour Vietnam in early November to scope out the local market and seek investment opportunities in the country.
The businesses are among Japanese SMEs interested in investing in the Southeast Asian country, especially in the support industry, amidst the Japanese yen’s depreciation.
Yanagawa, a representative of Business Innovation Partners Co., Ltd. which has been backed by the Japanese Government to bring SMEs to Vietnam, said the companies are seeking partners in the production and distribution of cosmetics, tissues and kitchen detergent.
Several are calling for cooperation in sea water desalination, fuels, solar energy and electric equipment, among others, he said.
Masashi Mochizuki, Deputy Director of the Vietnam Export-Import Bank (Eximbank), said the yen’s devaluation has pushed up material prices and labour costs in Japan, weakening SME competitiveness and forcing them to find new markets.
Despite the wave of Japanese SMEs, many groups such as Honda and Suzuki, which have operated in Vietnam for tens of years, are narrowing their investments as a result of the yen’s depreciation and Japan’s aging population.
Statistics show that Japan’s investments in the Southeast Asian nation dropped from 317.7 billion JPY (2.6 million USD) in 2013 to 141.8 billion JPY (1.1 million USD) in 2014.
According to Japanese Vice Consul General to Ho Chi Minh City Yakabe Yoshinori, the locality is currently hosting 787 Japanese firms.
He noted that Vietnam’s present economic growth rate and the pending Trans-Pacific Partnership (TPP) agreement would facilitate the operation of Japanese businesses, especially the SMEs.
Quach Van Duc, General Director of Tin Nghia Corporation, said the company has partnered with Japan’s Forval Group to build warehouses across 18.3 hectares at the Nhon Trach 3 Industrial Park in the southern province of Dong Nai, creating a basis for the formation of a Japanese SME centre.
With support from the Bank for Investment and Development of Vietnam (BIDV) and provincial authorities, the Japanese SME Development JSC was established to manage and operate the centre, he said.
HCM City is also constructing warehouses for lease at industrial parks such as Tan Thuan, Linh Dong, Hiep Phuoc and Dong Nam at a cost of about 600 billion VND (26.4 million USD). The project has received enthusiastic responses from Japanese investors.
Yanagawa, a representative of Business Innovation Partners Co., Ltd. which has been backed by the Japanese Government to bring SMEs to Vietnam, said the companies are seeking partners in the production and distribution of cosmetics, tissues and kitchen detergent.
Several are calling for cooperation in sea water desalination, fuels, solar energy and electric equipment, among others, he said.
Masashi Mochizuki, Deputy Director of the Vietnam Export-Import Bank (Eximbank), said the yen’s devaluation has pushed up material prices and labour costs in Japan, weakening SME competitiveness and forcing them to find new markets.
Illustrative image
|
Statistics show that Japan’s investments in the Southeast Asian nation dropped from 317.7 billion JPY (2.6 million USD) in 2013 to 141.8 billion JPY (1.1 million USD) in 2014.
According to Japanese Vice Consul General to Ho Chi Minh City Yakabe Yoshinori, the locality is currently hosting 787 Japanese firms.
He noted that Vietnam’s present economic growth rate and the pending Trans-Pacific Partnership (TPP) agreement would facilitate the operation of Japanese businesses, especially the SMEs.
Quach Van Duc, General Director of Tin Nghia Corporation, said the company has partnered with Japan’s Forval Group to build warehouses across 18.3 hectares at the Nhon Trach 3 Industrial Park in the southern province of Dong Nai, creating a basis for the formation of a Japanese SME centre.
With support from the Bank for Investment and Development of Vietnam (BIDV) and provincial authorities, the Japanese SME Development JSC was established to manage and operate the centre, he said.
HCM City is also constructing warehouses for lease at industrial parks such as Tan Thuan, Linh Dong, Hiep Phuoc and Dong Nam at a cost of about 600 billion VND (26.4 million USD). The project has received enthusiastic responses from Japanese investors.
16:42, 2025/01/12
AI set to drive Vietnam's economic growth in 2025
In 2024, Vietnam's digital economy saw a major uptick in interest in artificial intelligence (AI).
22:38, 2025/01/11
AEON Vietnam opens another department store in Hanoi
Vietnam remains AEON's second most important market in its medium- and long-term strategic plans.
22:32, 2025/01/09
Support measures to strengthen Hanoi's small businesses and local industries
In 2025, the geopolitical and economic landscape is expected to remain complex, affecting production, investment and trade activities.
17:17, 2025/01/08
European companies endorse Vietnam as investment destination
A large number of European companies foresee an improvement in the macroeconomic outlook for Vietnam in the first quarter of 2025.
10:47, 2025/01/08
Hanoi's flower market flourishes ahead of Tet 2025
The city is working to promote the sale of flowers and ornamental plants during Tet.
22:26, 2025/01/07
All-time high for Vietnamese FDI in 2024
In 2024, Vietnam's foreign direct investment (FDI) primarily targets high-value sectors such as electronics and green technology.
- Mechanisms matter to promote energy efficiency in Vietnam's industrial sectors
- Hanoi targets to become nation’s logistics hub
- Vietnam's textile industry braces for tougher competition in 2025
- Vietnam needs 2,400 professionals to operate Ninh Thuan nuclear power projects
- Vietnam's 2025 digital economy to thrive on AI-powered solutions
- Recruitment trend for 2025 with AI integration