Everyone is preparing for a big shift in foreign companies due to the commercial war between the US and China. Vietnam is considered Asia’s bright spot
Vietnam’s investment environment praised by Japanese
Foreign enterprises including Japanese lauded Vietnam as a safe and successful country for investors.
Sagara Hirohide, CEO of Marubeni Vietnam, a Japanese investor, recently took part in the Vietnam-Japan online investment promotion conference held by the Ministry of Planning and Investment and Japanese Embassy in Vietnam.
According to Hirohide, since the COVID-19 Pandemic outbroke in China, Vietnam has proven to be a reliable investment destination.
He believes that Vietnam would offer attractive investment mechanisms that would help bring Vietnam to a new development turning point.
Vietnam-Japan online investment promotion conference Photo: Hanoi Times
Miura Nobufumi, chair of the Japan Chamber of Commerce and Industry (JCCI), asserted that Japanese businesses have serious interest in the Vietnamese market.
“Vietnam is the first country in the world showing the advantages of supply diversification. Japanese businesses have a high interest in Vietnam, viewing it as an investment destination in the new normal status of today”, he said.
A survey by JCCI (Japan Chamber of Commerce and Industry) indicated that up to 2,800 people said that they want to come to Vietnam to seek investment opportunities.
Nevertheless, JCCI also pointed out that Japanese businesses are concerned about many problems existing in Vietnam including poor infrastructure and complicated procedures.
Praising Vietnam’s achievements in fighting against Covid-19, Envoy Okabe Daisuke from the Japanese Embassy in Vietnam said with high-risk management administration, Vietnam has begun to revive its economy.
Vietnam is a safe and attractive investment destination
Okabe Daisuke also made a 4-point proposal to the Vietnamese government.
First of all, resuming travel between the two countries. In May and June, Vietnam allowed 500 Japanese specialists to enter Vietnam.
Secondly, improving the implementation of public investment projects. No economic stimulus measure can bring high efficiency as a public investment can. The subway No 1 Ben Thanh – Suoi Tien, the Ben Luc – Long Thanh Highway and Nhon urban railway are effective measures to stimulate the economy.
Thirdly, attracting foreign direct investors, including Japanese. The Japanese Ministry of Economy, Trade, and Industry is providing a $2.3 billion credit package to help businesses diversify their production chains. Meanwhile, Japan Bank for International Cooperation (JBIC) also has a financial support package to help businesses overcome the Covid-19 pandemic.
Last but not least, it is necessary to upgrade Vietnam’s credit rating and improve the disbursement and decision-making process.
Earlier, there were 15 Japanese enterprises funded to shift production from China to Vietnam.
Japan External Trade Organization (JETRO) released a list of 30 Japanese firms out of 100 companies registering for the diverse supply chain schemes that would be provided funds to shift their manufacturing from China to some Southeast Asian countries including Vietnam, Philippines, Malaysia, Thailand, and Laos.
The fund ranges from 100 million to 5 billion Japanese yen (US$ 932,000 – US$ 46.6 million), partially offset the costs needed to purchase and install machinery and equipment for production expansion.
Vietnam’s investment environment received a lot of praise during the Vietnam-Japan online investment promotion conference.
After the first half of 2020, Vietnam has become a bright spot for many foreign investors to head to. There have been over 90 countries invested in Vietnam.