Japanese companies encouraged to open factories in Vietnam
Japanese companies are becoming eager to relocate their manufacturing facilities to Vietnam, according to the Japan External Trade Organisation (Jetro).
In a recent programme initiated by the Japanese government for businesses to diversify their supply chains in ASEAN countries, fifteen out of more than 80 partaking enterprises received financial support from the government to move factories to Vietnam.
The project of moving Japanese businesses to Southeast Asia was aimed at strengthening the Japan-ASEAN economic and industrial cooperation, according to Jetro’s chief representative in Hanoi, Takeo Nakajima. He said that it was also a move to reduce the gap in the Japanese supply chain since the Covid-19 pandemic had broken out and to reduce the dependence on China with regards to production facilities.
Vietnam as attractive investment destination
Nakajima noted that Vietnam has become an attractive investment destination for Japanese enterprises thanks to many Japanese-speaking workers and the comparably low labour costs.
With a population of 95 million people along with improvement in living standards and spending power, Vietnam is also expected to quickly become an attractive market for Japanese goods that are produced in the country.
Overall, the Japanese government will pay a total of 70 billion yen ($653 million) for 87 companies or groups to move production lines. A third of these will receive money for investments in Southeast Asia including Vietnam, Myanmar, Thailand and elsewhere in the region.
Japanese companies are becoming eager to relocate their manufacturing facilities to Vietnam, according to the Japan External Trade Organisation (Jetro). In a recent programme initiated by the Japanese government for businesses to diversify their supply chains in ASEAN countries, fifteen out of more than 80 partaking enterprises received financial support from the government to move factories to Vietnam. The project of moving Japanese businesses to Southeast Asia was aimed at strengthening the Japan-ASEAN economic and industrial cooperation, according to Jetro’s chief representative in Hanoi, Takeo Nakajima. He said that it was also a move to reduce the gap in the...
Japanese companies are becoming eager to relocate their manufacturing facilities to Vietnam, according to the Japan External Trade Organisation (Jetro).
In a recent programme initiated by the Japanese government for businesses to diversify their supply chains in ASEAN countries, fifteen out of more than 80 partaking enterprises received financial support from the government to move factories to Vietnam.
The project of moving Japanese businesses to Southeast Asia was aimed at strengthening the Japan-ASEAN economic and industrial cooperation, according to Jetro’s chief representative in Hanoi, Takeo Nakajima. He said that it was also a move to reduce the gap in the Japanese supply chain since the Covid-19 pandemic had broken out and to reduce the dependence on China with regards to production facilities.
Vietnam as attractive investment destination
Nakajima noted that Vietnam has become an attractive investment destination for Japanese enterprises thanks to many Japanese-speaking workers and the comparably low labour costs.
With a population of 95 million people along with improvement in living standards and spending power, Vietnam is also expected to quickly become an attractive market for Japanese goods that are produced in the country.
Overall, the Japanese government will pay a total of 70 billion yen ($653 million) for 87 companies or groups to move production lines. A third of these will receive money for investments in Southeast Asia including Vietnam, Myanmar, Thailand and elsewhere in the region.
