return icon Vietnamnet.vn

Japanese capital moves towards trade sector

VietNamNet Bridge - Vietnamese trading companies are being eyed by many Japanese investors who are planning to join the domestic market.

VietNamNet Bridge - Vietnamese trading companies are being eyed by many Japanese investors who are planning to join the domestic market.


 

{keywords}

After 20 years of presence in Vietnam, Toyota is now wavering between maintaining its production activities in Vietnam or shutting down its factory and importing complete-built products for domestic sale.

The main issue is that Vietnam is going to cut the tariff on car imports from ASEAN to zero percent by 2018. 

The tariff barrier will prompt foreign investors, including Japanese, to shift to doing trade instead of continuing production because of expected higher profits.

The Ministry of Finance has made public the Vietnamese 2015-2019 preferential tariff within the framework of the ASEAN-Japan Comprehensive Economic Partnership Agreement. It shows that more than 3,200 tax categories on materials, machines and equipment, electronics and electronic parts from Japan have had a zero tax rate since early April this year.

The goods imported from regional countries will also be cheaper than domestically made products as a result of tax cuts within the framework of the ASEAN Trade in Goods Agreement (ATIGA).

With these agreements, the Japanese have more reasons to focus on trade development projects in Vietnam.

Many big Japanese names have been operating in the trade and service sector in Vietnam for years. These include Aeon and Family Mart (retail), Logistics MLC ITL (transport service), Ishikawa Seiko, Metalone and Forval (import/export & consultancy).

Osato Kazuhiko from the Japan External Trade Organization (JETRO) said there are 300 Japanese invested food shops in HCM City, while half of the 200 Japanese invested enterprises in the city operate in the retail and service sector.

Not only do they pour money into trade businesses, Japanese have also developed logistics, freight and forwarding firms to support trade activities. 

Japan Logistics System, for example, has spent big money to build storehouses in Hanoi, Da Nang and HCM City, while Nissin has cooperated with the Vietnam Railway Corporation to operate a cargo train specifically serving Japanese enterprises to satisfy Japanese increasing demand for cargo transportation.

Japanese are also present in the internet and finance sectors which have close relations to trade activities. SBI Holdings, Econtext ASIA and Beenos, three Japanese investors, hold 33 percent of shares of Sen Do Company, an e-commerce business.

More recently, Credit Saison has received approval from the State Bank to buy 49 percent of stakes of HDFinance, a finance company of HD Bank.

According to JETRO, while Japanese foreign direct investment in Vietnam dropped by 65 percent in 2014 to $2.05 billion, the number of investment projects in the trade and service sector increased significantly, though trade projects all are small scale. Eighty-five percent of Japanese-invested projects in 2014 were capitalized at below $5 million.

TBKTSG

MORE NEWS

Ngoc Linh ginseng helps Central Highlands locals out of poverty

Growers in the Central Highlands provinces dreamed of escaping poverty when they planted Ngoc Linh ginseng which has made an economic contribution to improving local farmers’ living conditions.

Soc Trang’s Khmer pagoda features giant Buddha statue

With the long-standing bonds of the Kinh, Khmer, and Hoa ethnic groups, Soc Trang boasts a special cultural identity that makes it an outstanding spiritual destination for tourists and Buddhist followers from far and wide.

Smart-homes getting cheaper in Vietnam

In Vietnam, a smart-home installation package costs VND14-25 million.

Vietnamese nationals account largest proportion of Japan’s foreign worker population

Vietnamese nationals account for 25.4% of the total 1.82 million foreign workers who were working in Japan as of the end of October last year, according to the Japanese Ministry of Health, Labour and Welfare (MHLW).

Mekong Delta develops more OCOP products

The Cuu Long (Mekong) Delta’s 12 provinces and the city of Can Tho are developing more products under the country’s “One Commune-One Product” programme.

Major Vietnamese paintings worth millions of dollars at global auctions

2022 represented a successful year for the Vietnamese painting market as three more pieces were auctioned at more than US$1 million each, bringing the total number of valuable paintings to 19. Let’s take a closer look at some of them.

Vietnamese American singer brings Tet Holiday joy to disadvantaged children

In hope to bring the children who lost their parents because of Covid-19 a warm spring holiday, Vietnamese American singer Ha Phuong spent a day to enjoy Tet with them.

How will the economy fare in 2023?

Vietnam’s economy had a prosperous year in 2022 with GDP growth rate of 8.02 percent, a one-decade high.

Female Vietnamese badminton star Thuy Linh placed 50th in world rankings

Vietnamese badminton star Nguyen Thuy Linh has risen to 50th position in the world’s latest singles women rankings, according to the Badminton World Federation (BWF).

Phin Ho ‘shan tuyet’ tea –specialty of Ha Giang

Apart from stilt houses and seemingly endless terraced paddy fields, “shan tuyet” tea, a famous specialty of Phin Ho village, is one of the special things visitors cannot forget once setting foot in Tay Con Linh Mountain in Ha Giang.

Discovering art of making vegetarian dishes in Tay Ninh

Religions and beliefs have made considerable contributions to the culinary culture of Tay Ninh.

Hoi An, HCM City among world's top 25 trending destinations in 2023: TripAdvisor

Germany’s famous travel site reisereporter.de has run an article highlighting the world’s top 25 trending destinations for 2023, including Vietnam’s Hoi An ancient city and Ho Chi Minh City, recently voted by readers of TripAdvisor.

Make-in-Vietnam sleeping machine developed by professor

FRENZ Brainband helps users have faster, tighter and deeper sleep. It can also be used for relaxing and enhancing concentration when working.

Paris Agreement: Lessons on independence, self-reliance, int’l solidarity

The signing of the Paris Agreement on ending the war and restoring peace in Vietnam on January 27, 1973, was a resounding victory of Vietnam’s revolutionary diplomacy in the Ho Chi Minh era.

PM: Lunar New Year comes with new energy

Prime Minister Pham Minh Chinh chaired a meeting of permanent Cabinet members in Hanoi on January 27, speaking of new energy of the nation following Tet (Lunar New Year), the biggest festival in Vietnam.
back_to_top