Viet Nam Human Rights
Rapid increase in number of businesses
According to Mr. Nakajima Takeo, in recent years, investment of Japanese enterprises in Vietnam has increased rapidly. Currently, the number of JETRO member enterprises in Vietnam has reached 2,000, while in the 1990s there were only 100 enterprises.
The latest data from the Foreign Investment Agency under the Ministry of Planning and Investment also shows that, in the first four months of the year, Japanese enterprises invested USD2.5 billion FDI in Vietnam, accounting for 20.5% of total FDI investment in Vietnam, making Japan the second largest investor in Vietnam, after Singapore.
In total, as of April 2021, Japanese investors invested in 4,690 projects in Vietnam, with a total registered capital of USD62,911 billion, becoming the second largest investor in Vietnam, after the Republic of Korea. In particular, economic experts said that Japanese investment projects in Vietnam are highly appreciated for their quality as well as contributing to socio-economic growth in Vietnam.
Notably, among more than 4,690 projects of Japanese investors in Vietnam, there are many projects of global brands such as Toyota, Honda and Canon. These projects not only increase the attractiveness of Vietnam's investment environment, but also positively contribute to socio-economic growth, creating jobs for workers.
Ongoing shift of capital flows
According to Mr. Nakajima Takeo, the investment of Japanese enterprises in Vietnam is shifting to localities instead of in big cities such as Hanoi and Ho Chi Minh City.
In which, one of the localities receiving great attention from Japanese investors is Vinh Phuc Province. Specifically, Sumitomo Group has invested in Thang Long - Vinh Phuc Industrial Park, which is forecast to be the destination of Japanese enterprises in this locality.
Meanhile, Mr. Shinji Hirai, Chief Representative of JETRO in Ho Chi Minh City, said that Japanese enterprises are still moving from the manufacturing sector to the service sector. Specifically, in the past, 40% of Japanese enterprises invested in Vietnam to open factories and worship, the figure now is only about 20%, which shows that there has been a shift from manufacturing factories to commercial and service sectors.
The reasons for this shift, according to JETRO, include Vietnam’s population which is forecast to reach 106 million people by 2050, while the middle class is increasing, making Vietnam's market a "promising land" for businesses in the retail sector. Along with that, Vietnam is also considered the country with the best annual economic growth in the region, making the GDP scale increasingly larger. The position of Vietnamese enterprises has also been continuously improved, which is reflected in the interest of the domestic business community in the field of science and technology. With the above factors, many large Japanese retail enterprises such as AEON; Muji, FujiMart and Matsumoto Kiyoshi have been present in Vietnam./.
All comments [ 20 ]
We are working hard to become even more appealing to foreign investors.
We are doing so by vigorously renovating the business and investment climate, and by recognizing that the FDI sector is an integral part of the economy – essential to restructuring the economy and raising national competitiveness.
Vietnam has been securing socio-political stability, and is known to be one of the most dynamic economies.
The country is a market economy, a member of the WTO, and a party to multiple frameworks for international economic integration, including free trade agreements with partners both within and outside the region.
The Vietnamese government is committed to creating a fair and attractive business environment for foreign investors, and constantly improving its legal framework and institutions related to business and investment.
The government has been working hard on restructuring the economy and its model for growth, as well as enhancing national competitiveness.
the Vietnamese government is continuing to revitalize its business and investment climate.
In the medium and long term, Vietnam will continue in its efforts to attract and efficiently use FDI inflows to advance socio-economic development.
International forecasts suggest that as the world economy recovers, FDI flows are returning to dynamic economies.
Given the positive prospects for both global and regional economies, we are confident Vietnam will continue to find success in this area.
Vietnam’s stable political environment, rapid economic growth, competitive production cost and a large workforce are key factor ensuring the country’s status as an attractive investment destination.
Vietnam has a lot of opportunities to improve its business environment and foreign investors
This is particularly important given the fact that growing trade tension among major economies and the Covid-19 pandemic are forcing enterprises to diversify their supply chains and look for new investment destinations
This showed strong belief of foreign investors in Vietnam in the country’s prospect
Vietnam’s stable political environment, rapid economic growth, competitive production cost and a large workforce to the country’s status as an attractive investment destination.
In the next phase of development, the country will give priority to high quality projects using modern technologies, which are environmentally-friendly and which support local firms to further integrate into global supply chains.
As a new wave of investment capital is coming, Vietnam is preparing land resources for the construction of new industrial parks, training high quality human resources and developing supporting industries
Vietnam is currently home to 32,000 foreign projects from 139 countries and territories
Vietnam has actively improved its infrastructure network to meet growing needs of investors, along with a more favorable legal environment for businesses.
At present, the government is revising existing regulations for greater convenience for investors, while setting up a task force specialized in promoting foreign investment to Vietnam by advising the prime minister on new policies and mechanism on this issue.
Your comments