About 70 percent of Japanese businesses in Vietnam plan to expand their businesses. Most of the companies believe the expansion will boost commerce and economic growth.
Japan has recognized Vietnam as a good country for investment, according to the Japan External Trade Organization (JETRO). Vietnam is ranked fourth place out of 15 countries for easiest investments. Some of the issues for investment include administrative formalities, strict policies, complex taxes and incomplete laws.
Domestic material usage ratio is 32.2 percent for Japanese companies. This is lower than China (64 percent), Thailand (53 percent), Malaysia (42 percent) and Indonesia (41 percent).
Vietnamese enterprises should expand markets to meet foreign investment, said Executive Director of JETRO Yasuzumi Hirotaka.