25% of Japanese businesses leaving China have chosen Vietnam

Up to 25% of Japanese enterprises leaving China have chosen Vietnam to invest. In addition to cheap labor costs, Japanese enterprises believe that Vietnam's infrastructure has improved.

Processing dragon fruit for export. Photo: TT

Mr. Yasuzumi Hirotaka - Director of Jetro office in Ho Chi Minh City - said so at the 3rd annual investment conference in the Mekong Delta in 2015 organized by the Vietnam Chamber of Commerce and Industry (VCCI) Can Tho branch in Can Tho City on November 20.

According to Mr. Hirotaka, in addition to cheap labor costs, Japanese businesses also believe that infrastructure in Vietnam has been improved, many bridges and roads have been built to shorten travel time, so Japanese businesses want to expand investment, not just limited to Ho Chi Minh City...

However, a survey of Japanese enterprises investing in Vietnam shows that there are still many problems such as unclear information, labor costs starting to increase...

In particular, Vietnam's supporting industry is still weak. Enterprises need 100% of raw materials, but only 33% can be purchased in Vietnam, so tax support and other incentives are needed for supporting enterprises to develop.

Also at the conference, a representative of the Korean trade organization said that Korean businesses do not have much information about the agricultural economy in the Mekong Delta, so localities in the region need to provide more information and introduce to investors the areas in which they have strengths to attract more investors.

According to Tuoi Tre