Small, medium Japanese enterprises inclined towards Vietnam

Small and medium Japanese enterprises consider Vietnam as an attractive investment destination and are always on the lookout for investment opportunities in the country, said a representative from the Global Promotion Committee of the Tokyo Business Association.

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Formerly, most of the Japanese investors overseas were larger groups and corporation, while small and medium firms did not venture out abroad, the representative said. However, now they are investing abroad, though in small projects only.

In 2011, the total number of invested projects in this sector doubled in Vietnam, compared to the year before. However, the total capital registered in 2011 was far less.

Many small and medium Japanese enterprises are paying attention to additional components in car and motorbike manufacturing because of the existing business in this field in Vietnam.

Representatives from the Tokyo Business Association want Vietnam to offer more advantageous conditions so as to attract foreign firms in general and Japanese companies in particular.

There are currently 283 industrial parks in 58 provinces and cities nationwide, but around 35 per cent of the space still remains unoccupied.

Japan is the 4th biggest foreign investor in Vietnam with over 1,600 projects worth US$23.6 billion, according to the Ministry of Planning and Investment.

By Yen Lam – Translated by T.Huong

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