Japan, South Korea eye Vietnam as production bases

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Vietnam-TextileJapanese and South Korean companies are increasingly venturing into Vietnam. In the first ten months of 2013, Japanese investors made foreign direct investments (FDI) of $4.8 billion, staying firm as the biggest foreign investor in Vietnam. However, South Koreans have caught up, with $4 billion worth of registered FDI.

Firms from Japan came to Vietnam some years ago with industrial projects, from electronics, motorbikes, cars to cement and computers. The investment continues to flow, but new projects now mostly have small and medium scale.

Meanwhile, South Korean investors have recently invested on  a larger scale. For example, Samsung is now among the biggest foreign investors in Vietnam.

Analysts have noted that Japan and South Korea are looking at Vietnam as a production base with great potential, and that Vietnam should take actions to grab the opportunity.

However, the structure of Vietnam industries remains weak, though they, with Japanese support, have been trying to develop supporting industries over the last 15 years. So far, Vietnamese enterprises can only assemble products or provide simple accessories. Building up high-tech industries supporting industries is what Vietnam should be striving to.

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Japanese and South Korean companies are increasingly venturing into Vietnam. In the first ten months of 2013, Japanese investors made foreign direct investments (FDI) of $4.8 billion, staying firm as the biggest foreign investor in Vietnam. However, South Koreans have caught up, with $4 billion worth of registered FDI. Firms from Japan came to Vietnam some years ago with industrial projects, from electronics, motorbikes, cars to cement and computers. The investment continues to flow, but new projects now mostly have small and medium scale. Meanwhile, South Korean investors have recently invested on  a larger scale. For example, Samsung is now...

Reading Time: 1 minute

Vietnam-TextileJapanese and South Korean companies are increasingly venturing into Vietnam. In the first ten months of 2013, Japanese investors made foreign direct investments (FDI) of $4.8 billion, staying firm as the biggest foreign investor in Vietnam. However, South Koreans have caught up, with $4 billion worth of registered FDI.

Firms from Japan came to Vietnam some years ago with industrial projects, from electronics, motorbikes, cars to cement and computers. The investment continues to flow, but new projects now mostly have small and medium scale.

Meanwhile, South Korean investors have recently invested on  a larger scale. For example, Samsung is now among the biggest foreign investors in Vietnam.

Analysts have noted that Japan and South Korea are looking at Vietnam as a production base with great potential, and that Vietnam should take actions to grab the opportunity.

However, the structure of Vietnam industries remains weak, though they, with Japanese support, have been trying to develop supporting industries over the last 15 years. So far, Vietnamese enterprises can only assemble products or provide simple accessories. Building up high-tech industries supporting industries is what Vietnam should be striving to.

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