Vietnam’s stable social-political environment and a fast-growing market are the country’s advantages in attracting investment capital from Japan, said the head of JETRO in Hanoi.

Almost half of Japanese firms in Vietnam said they would expand investment in the country in the next one or two years.

Vietnam is the top choice for Japanese companies looking to diversify their supply chains, the Japanese Ambassador to Vietnam has said.

The Japanese business community has high expectation that Vietnam would manufacture high-added value products.

In addition to the ratification of new laws, Vietnam’s participation in high-standard FTAs ensures the country’s status among attractive investment destinations, Prime Minister Nguyen Xuan Phuc has said.

The issue was raised at a conference held between Vietnamese government agencies and major Japanese enterprises in Vietnam to address their issues.

The escalating tension between the US and China is diverting Japanese investment to Southeast Asia, with Vietnam being one of the favorite destinations.

Competition to attract FDI in Southeast Asia would be fiercer in the coming time.

While countries across the world are still in the fight against Covid-19, Vietnam has resumed business as usual and become one of the first countries to diversify the supply chains.