Vietnam-Japan Relations on the Rise as Japanese Investments Accelerate in 2023

The Chief Representative of the Japan External Trade Organization (JETRO) in Hanoi, Mr. Nakajima Takeo, recently met with the Minister of Planning and Investment, Nguyen Chi Dung, to discuss the current situation of Japanese businesses in the country. 

A survey by JETRO showed that 59.5% of Japanese enterprises are forecasted to be profitable in their operations in Vietnam in 2022, with 53.6% expecting to improve their business prospects in 2023.

In addition, the survey found that Vietnam's investment market ranks second after the US in terms of attractiveness to Japanese businesses.

This weekend, Aeon Mall is expected to begin construction of a new shopping center in Thua Thien Hue, with a total investment of more than $170 million. 

Meanwhile, Fujikin has just invested in building an R&D center in Da Nang, and other Japanese investors are looking to invest in Quang Ninh. 

However, administrative procedures, salary increases, and transportation costs remain hindrances to Japan's investment in Vietnam. 

Mr. Nakajima Takeo has expressed hope that the government will take action to improve these issues and allow for a restructuring of the supply chain.

Minister Nguyen Chi Dung acknowledged the need for improvement in administrative procedures and suggested that the Japanese side support Vietnamese enterprises to improve their capacity, which will help increase the localization rate for Japanese businesses. Both ministers are optimistic about the future of Japan-Vietnam relations and hope for more Japanese investment in the country in the near future.

Source: Bao Dau Tu