ASEAN KEY DESTINATIONS
Vietnam ranked third in Japanese business survey
Vietnam is ranked third in a list of countries showing promise for Japanese foreign direct investment (FDI) success in the medium term, according to a survey conducted by the Japan Bank for International Cooperation (JBIC).
The survey on “Overseas Business Operations by Japanese Manufacturing Companies” in 2008 was presented to Vietnam’s Ministry of Planning and Investment (MoPI) on February 11, reported Vietnam News Agency.
MoIP reported that the survey included 982 Japanese companies that operate abroad, 620 of which returned effective responses. Most of the surveyed companies invest in electronics, chemicals, mechanical engineering, garment-textiles, transport and food processing.
The Japanese companies attributed Vietnam’s bright business prospects to its inexpensive source of labour, the future growth potential of its domestic market, its suitability as destination for diversification of investments, its qualified human resources professionals and its use as a supply base for assemblers.
However, these firms also pointed out a number of issues hindering foreign investment in Vietnam, such as the nation’s underdeveloped infrastructure, difficulties in hiring managerial and technical/engineering staff, rising labour costs and the often muddled execution of its complex legal system.
The survey demonstrates Japanese businesses’ continued interest in Vietnam’s electrical and electronic equipment manufacturing, automobile, general machinery and chemicals industries.
Japan is considered one of Vietnam’s largest investors, and was listed third out of 70 countries and territories investing in the Southeast Asian country during the 2006-2008 period, accounting for 11.1 percent of the total amount of registered FDI.