A survey by the Japan Trade Promotion Organization (JETRO) published today in Hanoi shows that up to 70% of Japanese enterprises want to expand production in Vietnam, the highest rate among countries is survey object.
Specifically, if 69.8% of Japanese enterprises surveyed in Vietnam thought that they would expand business activities in Vietnam, this rate in China would be only 48.7% and Malaysia 54.0%. and Thailand at 52.2%.
This is also the second year in a row, the result of Vietnam ranked first in this index.
Assessing the above results, Mr. Hironobu Kitagawa, Chief Representative of Japan Trade Promotion Organization (JETRO) in Vietnam, said that even for businesses established before 2010, there were 67.1% of enterprises. The enterprise has the guideline to expand production, this is a relatively high rate, showing a very positive signal.
“It shows that Vietnam continues to be an important investment destination, Japanese businesses are doing well in Vietnam and have high expectations on the potential and growth potential of your country,” he said. Hironobu Kitagawa said.
In addition, the representative of JETRO also acknowledged that Vietnam still retains the advantages of the investment environment such as market size, growth ability or a very traditional advantage of cheap labor cost. However, there are also risks about the investment environment that Mr. Hironobu Kitagawa wants Vietnam to improve in the near future.
“Regarding the investment environment risks that Japanese enterprises investing in Vietnam face, 4 out of the top 5 have been improved. However, the Legal system item has not The number of localization in Vietnam reached 36.3%, the highest increase among the surveyed countries, which increased steadily in recent years. here but compared to China, Thailand and Indonesia is still low, this is increasing the production costs of businesses, “said Hironobu Kitagawa.
Attending the press conference announcing the Survey Results, Deputy Minister of Planning and Investment, Mr. Vu Dai Thang highly appreciated JETRO’s approach, science and objectivity in implementing this survey. The JETRO study also points out the advantages of Vietnam’s business investment environment and this advantage is consistent with the study of the Ministry of Planning and Investment when comparing Vietnam’s investment environment with China or Thailand.
“In the study of the Ministry of Planning and Investment, Japanese businesses are interested in Vietnam based on the advantages of labor prices, the level of support from the government as well as the people, the economic scale is constantly increasing. In particular, the fact that Vietnam becomes a partner in many free trade agreements is also a channel for Japanese enterprises to access new markets, “Deputy Minister Vu Dai Thang said.
Commenting on the survey results, Deputy Minister Vu Dai Thang said that, with nearly 70% of Japanese enterprises want to expand production in Vietnam, the highest rate among the surveyed countries clearly reflects the business environment. stable business, as well as the attractiveness of Vietnam to Japanese businesses.
In addition, the localization index has been on an upward trend in recent years, clearly demonstrating the Government’s policies in promoting Vietnam’s supporting industries to be effective initially for enterprises. In general, foreign-invested enterprises and Japanese enterprises in particular.
In addition, the number of Japanese businesses doing business with profits increased to 65.3% in the context that foreign-invested enterprises generally reported a loss of 52%, which is also very valuable.
Regarding the risks in the investment environment, Deputy Minister Vu Dai Thang also expressed his agreement with the JETRO survey, especially the incomplete legal factor, the operation was not transparent, as this was clearly shown in the process. enforcing laws on investment and enterprises over the past time.
“Looking ahead to 2019, the Government of Vietnam will submit to the National Assembly amendments to the Investment Law and the Enterprise Law, perfecting the legal corridor so that domestic and foreign enterprises can be assured to invest in business. We have also grasped and will have solutions to thoroughly handle in the near future, “Deputy Minister Vu Dai Thang said.