It’s now the mature timing for Vietnamese enterprises to make investments in Japan as the Northeast Asian nation’s economy is recovering and its tourism is booming, Shigeki MAEDA, executive vice president of the Japan External Trade Organization (Jetro
), said at a conference in Hanoi on July 5.
Mr. Maeda noted that foreign investment from Asia has risen steadily over the past five years, outperforming that from Europe and the United State.
After taking office for a second term in 2014, Prime Minister Shinzo Abe launched a package of measures called Abenomics to boost the local economy.
The Japanese government is striving to make the country more attractive to foreign investors by cutting the corporate income tax rate to 20%, liberalizing the retail electricity market and amending the Law on Medicine.
A view of the conference on doing business with Japanese firms. Photo: Minh Tuan/BizLIVE
The Jetro representative highlighted three major characteristics than can appeal to foreign players.
First, the Japanese market is huge and sophisticated. The GRDP of each of its regions is equivalent to that of major economies in the world, including the UK, Switzerland, Sweden and Indonesia.
“Therefore investing in Japan means making investment in many economies,” Mr. Maeda stressed.
Second, Japan’s tourism industry has grown fast over the past years, making the government revise its target to welcome 40 million foreign visitors in 2020 from the initial 20 million.
Around 670,000 Japanese people went on holiday in Vietnam while some 190,000 Vietnamese tourists traveled to Japan in 2015. These are the record highs for both sides.
The booming tourism opens up big opportunities for foreign investors to make roads into the hospitality, retail sales and restaurant industries in Japan, he noted.
Third, as Japan is developing into an information technology nation, the demand for Big Data and other services is increasing. Meanwhile, IT is a promising field for the Japanese-Vietnamese cooperation.
“If you ask me when to invest in Japan, I would say that now is the time. If you don’t invest in Japan now, when will you?” he concluded.
According to the Foreign Investment Agency (FIA
) under the Vietnamese Ministry of Planning and Investment, Vietnamese firms have made nearly 40 investments worth some $7 million in Japan, mostly in the IT sector.
When investing in Japan, Vietnamese companies can absorb Japanese know-how, cut production costs and export products to their home country and other nations that have trade accords with Vietnam, said Do Nhat Hong, head of FIA.