New wave of Japanese investment in Vietnam

A new wave of Japanese investments in Vietnam have recently risen from business merger and acquisition (M&A) transactions, according to experts at a forum on mergers and acquisitions that took place in Ho Chi Minh City on June 7.

The country saw 345 merger and acquisition deals worth US$1.7 billion and 400 transactions in 2011 valued at $4.7 billion. Foreign investors represent 66 per cent in all deal values.

Among them, Japan is one of the leading countries implementing merger and acquisition deals with 19 transactions worth $596 million.

Japan has also taken the lead among countries and territories investing in Vietnam with total investment capital of $23.6 billion in the first months of 2012.

According to experts, Japanese investors will reduce investment time and capital if they carry out merger and acquisition activities. Local partners will help Japanese enterprises to sell products in Vietnam. On the other hand, the country will be production base to provide goods to the Japanese market.

Japanese investment potential in Vietnam has risen sharply in various fields including retail, real estate, service, IT and domestic consumption.

Additionally, local authorities should strengthen competitiveness in investments, improve administrative formalities, upgrade infrastructure and train human resources to attract investors.

By Thuy Hai – Translated by Kim Khanh

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