More than 100 Japanese manufacturing and processing enterprises in Vietnam are facing a shortage of materials for production due to the Covid-19 outbreak, according to a survey on the impact of the epidemic on Japanese firms in Vietnam.
The survey was conducted by the Japanese Chamber of Commerce and Industry in HCMC and the Japan External Trade Organization (JETRO) on 209 manufacturing and 217 non-manufacturing Japanese firms in HCMC, Dong Nai, Binh Duong, Long An and Ba Ria-Vung Tau.
Most manufacturing enterprises reportedly found it hard to import materials from China, while 28% of non-manufacturing firms are facing the same fate, according to Hirai Shinji, head of the representative office of JETRO in HCMC.
They noted that they might be out of material reserves by the end of this month or the middle of next month.
Many enterprises have started seeking new sources of materials or even changing production sites.
In addition to the temporary closure of factories in China, Japanese enterprises in Vietnam have been affected by obstacles in logistics and the restriction of Chinese experts from entering Vietnam.
Nevertheless, only 1% of the respondents to the survey indicated that their revenues might plunge by half versus the figures recorded last year.
Meanwhile, 7% forecast their revenues would fall 20%-40% and 22% expected their revenues this year to drop 10%. SGT
Japanese investors continued to demonstrate their confidence in the Vietnamese real estate market with recent involvement in new large-scale projects.
Services and retail are forecast to attract a large amount of Japanese direct investment into Vietnam this year.