HCMC – Investment of Japanese enterprises is forecast to increase further in 2013, with a focus on the items for domestic consumption and export to Asia.
Japan is the biggest investor in Vietnam last year with newly-registered and additional capital reaching US$5.13 billion, accounting for 40% of total investment commitments to the country.
At a recent meeting on investment promotion with localities, Japanese Consul General in HCMC Harumitsu Hida said that while foreign direct investment (FDI) in Vietnam in general continued to decline, investment of Japanese firms would keep surging.
The yen appreciation, labor shortage, rising labor costs and shrinking market due to population aging, plus the impacts of earthquake and tsunami, make it less favorable to do business in Japan. Therefore, Japanese enterprises are shifting their investment overseas to Vietnam, Indonesia and Thailand among others.
Vietnam should take advantage of this opportunity by further improving the investment environment, said Hida.
Sharing this view, Mitsuhiro Mori, chairman of the Japan Business Association of HCMC (JBAH), believed that in the near future JABH would grow larger than or equal to its counterparts in Thailand and Singapore as Japanese firms tend to boost investment in Vietnam.
Atsushi Uehara, general director of Long Duc Investment Co. Ltd., developer of Long Duc Industrial Park in Dong Nai, said Japan’s investment in industrial parks in Vietnam in general and in Long Duc Industrial Park in particular would at least be equal to 2012. Japanese manufacturers are seeking ways to lower production costs and expand the market, especially in the ASEAN region, he explained.
In 2013, Long Duc Industrial Park continues to focus on attracting investment from Japan. “To do this, in Long Duc Industrial Park and in Japan, we have been organizing meetings with the investors who intend to make investments abroad,” said Uehara.
According to the Japan External Trade Organization (JETRO) in Vietnam, after a period of time searching for investment opportunities in China, Japanese investors are heading to Southeast Asia and Vietnam is considered a potential destination.
According to a number of Japanese investors, Vietnam is eyed for its cheap labor, great potentials in the domestic market and a platform for export to third countries.
Previously, Japanese investors mainly focused on industrial manufacturing, processing and assembly for export in order to make use of young, abundant and low-cost labor force. However, in recent two years, Japanese investors have been present in almost all areas that Vietnam calls for investment, especially the small and medium enterprises in spare part production.
Yasuzumi Hirotaka, director of JETRO in HCMC, said Japanese firms tended to invest in supporting industries for manufacturing and service sectors. In addition, they no longer focus on processing for export, but are trying to meet the demand of the Vietnamese market and ASEAN.
Source: english.thesaigontimes.vn