Honda is one of the major Japanese brands present in Vietnam for a long time. (Photo: baodautu.vn)

Rapid increase in number of businesses

According to Mr. Nakajima Takeo, in recent years, investment of Japanese enterprises in Vietnam has increased rapidly. Currently, the number of JETRO member enterprises in Vietnam has reached 2,000, while in the 1990s there were only 100 enterprises.

The latest data from the Foreign Investment Agency under the Ministry of Planning and Investment also shows that, in the first four months of the year, Japanese enterprises invested USD2.5 billion FDI in Vietnam, accounting for 20.5% of total FDI investment in Vietnam, making Japan the second largest investor in Vietnam, after Singapore.

In total, as of April 2021, Japanese investors invested in 4,690 projects in Vietnam, with a total registered capital of USD62,911 billion, becoming the second largest investor in Vietnam, after the Republic of Korea. In particular, economic experts said that Japanese investment projects in Vietnam are highly appreciated for their quality as well as contributing to socio-economic growth in Vietnam.

Notably, among more than 4,690 projects of Japanese investors in Vietnam, there are many projects of global brands such as Toyota, Honda and Canon. These projects not only increase the attractiveness of Vietnam's investment environment, but also positively contribute to socio-economic growth, creating jobs for workers.

Ongoing shift of capital flows

According to Mr. Nakajima Takeo, the investment of Japanese enterprises in Vietnam is shifting to localities instead of in big cities such as Hanoi and Ho Chi Minh City.

In which, one of the localities receiving great attention from Japanese investors is Vinh Phuc Province. Specifically, Sumitomo Group has invested in Thang Long - Vinh Phuc Industrial Park, which is forecast to be the destination of Japanese enterprises in this locality.

Meanhile, Mr. Shinji Hirai, Chief Representative of JETRO in Ho Chi Minh City, said that Japanese enterprises are still moving from the manufacturing sector to the service sector. Specifically, in the past, 40% of Japanese enterprises invested in Vietnam to open factories and worship, the figure now is only about 20%, which shows that there has been a shift from manufacturing factories to commercial and service sectors.

The reasons for this shift, according to JETRO, include Vietnam’s population which is forecast to reach 106 million people by 2050, while the middle class is increasing, making Vietnam's market a "promising land" for businesses in the retail sector. Along with that, Vietnam is also considered the country with the best annual economic growth in the region, making the GDP scale increasingly larger. The position of Vietnamese enterprises has also been continuously improved, which is reflected in the interest of the domestic business community in the field of science and technology. With the above factors, many large Japanese retail enterprises such as AEON; Muji, FujiMart and Matsumoto Kiyoshi have been present in Vietnam./.

Compiled by BTA