60% of Japanese firms want to expand investment in Vietnam: JETRO

21 Dec '22

2 min read

Pic: Shutterstock

Three-fifths of Japanese enterprises want to expand their investment in Vietnam in the next one to two years—up by 4.7 points from the previous year and the highest among the Association of Southeast Asian Nations (ASEAN), according to a survey this year on Japanese investment in Asia and Oceania by the Japan External Trade Organisation (JETRO) in Vietnam.

The percentage of Japanese enterprises operating in Vietnam projected to be profitable this year is 59.5 per cent—up by 5.3 points compared to the 2021 figure.

The primary reason for rising profits in all sectors in Vietnam is due to the country’s strong socio-economic recovery from the pandemic, JETRO noted.

Some businesses, however, faced difficulties in purchasing raw materials due to increased labour costs and logistics costs, the survey found.

Regarding prospects in 2023, 53.6 per cent of surveyed Japanese businesses answered ‘improved’, the highest in Asia and Oceania, a news agency reported.

The survey was conducted in 20 countries and territories in Asia and Oceania and received responses from 603 Japanese enterprises operating in Vietnam.

In a similar survey in China, the number of Japanese enterprises that have plans to expand their investment in that country in the next one to two years is only 33.4 per cent, the lowest since the survey started in 2007.

Fibre2Fashion News Desk (DS)

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