Vietnam continues to be a prime investment destination for Japanese enterprises, according to a recent survey by the Japan External Trade Organization (JETRO). The survey revealed that nearly 57% of Japanese firms intend to expand their presence in Vietnam within the next 1-2 years, ranking it second only to Laos in growth interest among Southeast Asian nations.
The number of Japanese companies operating in Vietnam surged to 2,000 in 2023, surpassing all other ASEAN countries. Approximately 50.4% of Japanese investors anticipate improved business profit expectations for 2024.
While Japanese firms remain committed to enhancing local procurement and anticipate further development in the supporting industry, the survey identified challenges such as a shortage of skilled human resources, particularly in the non-manufacturing sector and industries like retail, information and communications, finance, insurance, education, and healthcare. Japanese companies also highlighted investment-related risks, including prolonged processing times in administrative procedures.
Despite these challenges, Vietnam’s growing economy and conducive business environment underscore its significance as an investment destination for Japanese enterprises. Addressing issues like human resource shortages and streamlining administrative procedures will be crucial for sustaining and enhancing Japanese investment in Vietnam’s dynamic market.
