According to the results of the survey on the situation of production operations and business of Japanese enterprises in Vietnam which are made by the Japan External Trade Organization (JETRO) and announced on February 23rd 2016, currently, there is more than 60% of Japanese businesses in Vietnam which have a trend to expand business operations. This is high percentage in comparison with other countries, reflecting the investment attractiveness of Vietnam in the period of integration.
Japanese enterprises is one of the most important investors of Vietnam.
Under Mr Atsusuke Kawada, Chief of JETRO Representative Office in Ha Noi, among 557 Japanese enterprises in Vietnam participating in the survey, in 2015, there was 58,8% of businesses making profits and 26,2% of businesses reporting a loss, up 1,3% as compared to 2014.
However, over 60% of enterprises confirmed that they will continuously expand business and production and continuously consider Vietnam as an important place for investment. 85% of enterprises said that raising turnover is one of the main reasons for enlarging investment. Meanwhile, the percentage in China, Thailand and Malaysia only reached 38,1%, 49% and 44,6% respectively.
Assessing the advantages of investment environment, Japanese enterprises said that Vietnam have a strength of cheap labor costs, the stability in political and social situation, large market scale and a high potential growth.
Nevertheless, besides the need of investment in Vietnam and such advantages in Vietnam, Japanese enterprises in Vietnam still have to face up to many risks such as uncompleted and continuously changing legal system, lack of transparency in law enforcement and complicated administrative procedures. These risks make a number of Japanese enterprises meet difficulty in the process of increasing investment capital and opening production scale.
With many years of experience in consulting on foreign investment, Vietthink has been believably chosen as the legal consultancy by Japanese enterprise and we has advised successfully several transaction for Japanese enterprise which are investing inside and outside industrial parks in Vietnam, such as Sumitomo Electric Industries, Ltd, Electronic components SEI Vietnam (SEEV), JSC consulting Yanoken, HUMA Medical, Sumiden and so on. PhD- lawyer Le Dinh Vinh - Director of Vietthink Law Firm, Commissioner of Executive Committee of Vietnam- Japan Friendship Association, has a clear understanding about the culture, human and business habits of Japanese enterprises because of his long time being trained in Japan. Therefore, Japanese enterprises have confidence in the legal advice and support of Vietthink.
Japanese enterprises in Vietnam hope to continuously receive active support from Vietnamese Government, focusing on facilitation in trade, customs and administrative procedures, especially when TTP took effect.