Survey says 70% of Japanese enterprises wish to expand business in Vietnam

70% of Japanese enterprises intend to expand their operations in Vietnam (illustrative image)

The survey covers the operations of Japanese enterprises in Asia and Oceania and its findings were announced by the Japan External Trade Organisation (JETRO) in Ho Chi Minh City on February 6.

Chief Representative of JETRO Office in Ho Chi Minh City Koji Takimoto said that the survey received valid responses from 4,630 Japanese enterprises in 20 countries and territories around the world, including 652 Japanese enterprises in Vietnam.

The survey showed that 65.1% of Japanese enterprises operating in Vietnam recorded a profit in 2017, up 2.3 percentage points from the previous year.

In addition, about 70% of Japanese enterprises expressed their intentions to expand their business in Vietnam, a slight increase compared to 2016. The rate is relatively high compared to other countries, indicating the attractiveness of the Vietnamese market.

Japanese enterprises mentioned key factors for their developments in Vietnam including the advantages of the investment environment, political and social stability, and the affordable cost of labour, among others.

However, the language barriers, incomplete legal system, complicated tax procedures, and limited sources of materials and components remain key obstacles for Japanese enterprises operating in Vietnam, the survey says.