Japan, South Korea eye Vietnam as production bases

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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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