Japanese investors are viewing Vietnam as a more attractive investment destination, with higher growth potential for industrial development, particularly in the textile and components industries, the Ho Chi Minh office of the Japan External Trade Organisation (Jetro) said.

Managing director Yoshida Sakae yesterday said compared to Thailand, Vietnam is like a child while Thailand is an adult with decades of industrial development.

At present, there are roughly 1,000 Japanese companies in Vietnam and around 7,000-8,000 firms in Thailand, said Sakae.

He said the Vietnamese government had a clear direction to develop the country's industry. Some companies are constructing steel-blast furnaces and refineries in Vietnam as they are basic manufacturing. The government has set the target to make Vietnam an industrial country by 2020.

The advantages of investing in Vietnam are low labour cost and a larger market than Thailand as the country has a population of 68 million people. Hence, consumption in Vietnam is growing every year.

via Japanese investors turn focus on VN.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Vietnam to Build First Hydrogen Plant, Coal to Still be Dominant Power Source

Despite the developments in renewable energy production, Vietnam will continue to rely on fossil fuels, especially coal.

Vietnam, China and Thailand are Cambodia’s top three export destinations

Cambodia’s total export to the Regional Comprehensive Economic Partnership (RCEP) member countries amounted to $1.95 billion in the first quarter of 2022, up 11 percent from $1.75 billion  over the same period last year, a Ministry of Commerce’s data showed on Thursday.

What role will ASEAN play in a shifting geopolitical landscape?

All eyes will be on ASEAN this year as it hosts several key global summits, including the G20 in Indonesia.