Vietnam expects strong investment from Japan

Vietnam has so far attracted more than 22,000 foreign direct investment (FDI) projects worth about US$300 billion from 116 countries and territories.

Japanese investors account for 3,300 of the total projects with a total registered capital of nearly US$42 billion, more than 14% of total FDI in Vietnam.

According to the Ministry of Planning and Investment, 1,600 Japanese firms are operating in 52 out of the 63 cities and provinces in Vietnam.

Japan is currently the biggest official development assistance supplier of Vietnam.

Two-way trade has recorded annual average growth of 13.9% in recent years, which is expected to hit US$60 billion by 2020.

At the end of January 2017, a delegation of 70 Japanese businesses explored the investment environment in Vietnam.

Chairman of the Japan Chamber of Commerce and Industry Akio Mimura, head of the delegation, said Vietnam was an attractive destination.

Japan will boost investment in the Southeast Asian country in infrastructure, agriculture, industry and manufacturing spare parts, he added.

A survey conducted by Japan’s Asian Nikkei Review in 2016 named Vietnam as the first choice for Japanese investors in ASEAN, with up to 53% of surveyed Japanese businesses planning to invest in Vietnam.

During his official visit to Vietnam in January 2017, Japanese Prime Minister Shinzo Abe agreed with Vietnamese counterpart Nguyen Xuan Phuc to expand trade and investment ties.

Vietnam drew over 175 FDI  projects capitalised at US$1.24 billion in January 2017, year-on-year respective increases of 37.8% and 23%.

Total newly-registered and increased capital reached US$1.4 billion in the first month of 2017, up 6.6% against the same period last year. FDI disbursement was estimated at US$850 million, a yearly rise of 6.3%.