The improvement in the country’s business environment has been cited among most prominent factors that have contributed to this achievement.
This Japanese enterprise specialises in electrical wiring systems for vehicles. It started operating in Vietnam in 2008 and has so far built 2 factories in Hà Nam and Nam Định provinces. The Nam Dinh plant provides jobs for about 2,300 local workers.
"Our operations rely on people, not machines. That’s why we need quality workers. Workers in Nam Định Province meet our requirements", said Koichi Hamaguchi - General Director of Sumi-Hanel Wiring System Co., Ltd.
Vietnam is well-known for its low cost workforce. The country has also underlined its determination to improve its investment and business environment.
"In 2006, we decided to invest in Vietnam because of the low labour costs. The current business environment has encouraged us to increase our investment here", said Hiroshi Watabe - General Director of Usol Vietnam Co., Ltd.
According to the provincial competitiveness index, 11% of FDI firms in 2015 furthered their operations in Vietnam and 62% recruited more workers, the highest figures recorded in the past 5 years.
However, recent studies in the FDI sector showed that Vietnam’s business environment still has some limitations in terms of corruption, red tape and poor infrastructure.
Many investors have chosen Vietnam instead of China, Thailand or Indonesia. Despite some difficulties, Vietnam is still a stable and safe business environment in the eyes of investors.
