Deputy Prime Minister Hoang Trung Hai addresses the Vietnam-Japan Economic Forum. (Photo: vinanet.vn)
Vietnam expects the Japanese government and business community to continue beef up investment in Vietnam, with a focus on six sectors namely electronics, agricultural machinery, agro-seafood processing, shipbuilding, environment, energy efficiency, and automotive manufacturing, Mr. Hai said at the Vietnam-Japan Economic Forum in Hanoi on Wednesday.
The Vietnamese government will closely cooperate with the Japanese side to improve Vietnam’s business environment and make the country an increasingly attractive investment destination, the deputy prime minister asserted.
Speaking at the event, an executive of the Japan External Trade Organization (JETRO) pointed out that the low localization rate is hindering Japanese investors in Vietnam. The local content ratio for Japanese firms in Vietnam is 33%, lower than 55% in Thailand and 43% in Indonesia.
Vietnam needs to give priority to developing supporting industries and small- and medium-sized enterprises (SMEs). JETRO will bridge two countries’ firms that trade components and spare parts and introduce Japan’s cutting-edge agro-industrial technologies, the representative added.
Vietnam is increasingly attractive to Japanese businesses. According to a JETRO survey, out of the 521 SMEs that plan to do business in emerging countries, 130 firms are keen to invest in Vietnam, compared to 78 in Thailand.
Japanese firms have registered to invest in 2,661 projects worth a combined $37.7 billion in Vietnam so far. Some 1,500 Japanese firms are present in all key industries in Vietnam.
Bilateral trade reached $27.6 billion in 2014 and $19 billion in the first 8 months of 2015.