(MPI) - Many Japanese enterprises intend to expand their investment in Vietnam, Chief Representative of the Japan External Trade Organisation (JETRO) in Hanoi Nakajima Takeo affirmed while working with the Minister of Planning and Investment Nguyen Chi Dung on February 6.

JETRO Chief Representative in Hanoi Nakajima Takeo. Photo: MPI

In the JETRO survey on Japanese investment in Asia and Oceania 2022, Vietnam’s economy continues to recover and its business expansion intend to rank first in the ASEAN.

The survey received responses from 603 Japanese enterprises operating in Vietnam and most of them wished to expand their business and operation in Vietnam.

The percentage of Japanese enterprises operating in Vietnam forecast to be profitable in 2022 is 59.5%, up 5.2 points compared to 2021, and those to be unprofitable is 20.8% (down 7.8 points). The proportion of profitable businesses in Vietnam tends to increase and becomes higher than other countries in the ASEAN since 2016.

Regarding business prospects, in 2022, 47.6% of surveyed Japanese businesses answered “improved”, and in 2023 the percentage was 53.6%.

Meanwhile, 22.6% of surveyed Japanese businesses answered “worse” in terms of business profit prospects, and in 2023 only 6.9% of those answered “worse”, compared to 2022.

According to JETRO, the main reason for the improving business profits in Vietnam, especially the manufacturing and consumption industry and service industry, is due to the increase in exports and domestic’s consumption. Both manufacturing and non-manufacturing sectors are forecast to improve by 50% in 2023.

In addition, 60% of Japanese enterprises said they would expand their investment in Vietnam in the next one to two years, up 4.7 points from the previous year. It was the highest among Southeast Asian countries, after India (72.5%) and Bangladesh (71.6%).

Another survey by JETRO showed that Vietnam is the second appealing destination for Japanese investors, just after the U.S.

According to Nakajima, the main reasons is that Japanese businesses believe in Vietnam’s exports and its potential with high economic growth. He expressed his hope that the Ministry of Planning and Investment will soon remove difficulties and obstacles facing Japanese investors, creating confidence for them to feel secure in production and expand their business through dialogues in the time to come.

At the working session. Photo: MPI

For his part, Minister Dung said that the JETRO survey will help the Government of Vietnam in policy making and to understand the operation as well as proposals of Japanese enterprises investing in Vietnam.

The minister hailed JETRO’s role in contributing to policy making in Vietnam as well as promoting Japanese businesses to explore opportunities and invest in Vietnam. Vietnam is committed to create a favourable, safe and transparent business and investment environment for FDI enterprises, including those of Japan, to invest successfully and expand business in Vietnam.

He highlighted the motto “Vietnam is the priority destination for Japanese enterprises to invest abroad", and encouraged Japanese investors to be more proactive and make investment decisions. This is an opportunity to bring Vietnam-Japan cooperation on par with the extensive strategic partnership for peace and prosperity in Asia, he added.

The host asked JETRO to support Vietnam in improving production and business capacity for small and medium-sized enterprises, transfer  technology, and promote Japanese companies to participate innovation and research and development (R&D) activities in Vietnam./.

Bao Linh

Ministry of Planning and Investment