return icon

Number of profitable Japanese firms operating in Vietnam rises

The proportion of Japanese enterprises operating in Vietnam forecast to be profitable in business activities last year is 54.3 percent, up 4.7 points compared to 2020.

Number of profitable Japanese firms operating in Vietnam rises hinh anh 1

A view of AEON - Tan Phu Celadon shopping mall in HCM City. (Photo: AEON Vietnam)


This figure is part of a survey on Japanese investment in Asia and Oceania 2021. Chief Representative of the Japan External Trade Organisation (JETRO) in Hanoi Takeo Nakajima presented the figure on January 19.

In this 35th survey, the programme received responses from 702 Japanese enterprises operating in Vietnam.

Notably, the survey period was from August 25 to September 24 last year, coinciding with the time when Vietnam implemented strict social distance measures due to the COVID-19 pandemic.

Therefore, it affected the response results of enterprises, said Nakajima.

However, the number of Japanese businesses investing and operating in Vietnam saying their profit improved reached 31.4 percent, an increase compared to the last survey in 2020.

On the other hand, due to the impact of the COVID-19 pandemic, the recovery of businesses is slower than in other countries.

In particular, in the South and Central regions, more than 40 percent of businesses answered that their operating profit "declined" due to the decrease in operating rates.

As for the manufacturing industry, the proportion of enterprises reporting a profit is 57.5 percent; while non-manufacturing is 51.5 percent.

Towards the new year, 56.2 percent of surveyed businesses answered "improved" in terms of business profit prospects compared to last year.

The percentage of enterprises that intend to expand their business in Vietnam in the next one to two years is 55.3 percent, up 8.5 points from the previous year, ranking first in ASEAN and fourth in 20 countries in the survey, only behind India, Bangladesh and Pakistan.

The percentage of businesses wanting to expand operations in Vietnam has decreased compared to before the pandemic, said Nakajima. However, this was the general trend in other markets, not only Vietnam, due to the impacts of COVID-19.

Vietnam was also a country where the rate of enterprises expanding production was higher than that of the ASEAN region, he added.

In terms of investment environment advantages, market capabilities, development potential; stable political and social situation; and high-quality staff are the highlights of Vietnam compared to other ASEAN countries.

Although the minimum wage last year did not increase, wages in Japanese businesses grew by an average of 5.4 percent.

JETRO's report also shows that businesses in Vietnam are most interested in "saving energy and saving resources" in the trend of efforts to reduce greenhouse gas emissions.

There are few enterprises co-operating with Vietnamese start-ups (5 percent) and enterprises intending to co-operate (3 percent) but enterprises interested in co-operation is 30 percent, higher than the average of the Asia and Oceania region.

Regarding the prospect of new capital inflows in the new year, Jetro believes that when international routes between the two countries are restored and stabilised, it would create a basis for Japanese enterprises to study Vietnamese business environment and make decisions.

Source: VNS


Press agencies should collect user data instead of relying on digital platforms

Newspapers need to collect reader data to produce articles and personalize content rather than depend too heavily on digital platforms, said Nhan Dan (People) Editor-in-Chief Le Quoc Minh.

New generation FTAs fuel US$750 billion trade hope in 2022

Vietnam has signed 15 free trade agreements (FTAs), including several new generation FTAs, a move which is anticipated to create a breakthrough in trade and produce a large trade surplus in the year ahead.

Vietnamese firms’ outbound investment doubles in five months

Vietnamese enterprises poured over US$293 million into their new projects abroad over the past five months, double the investment made in the same period last year, according to statistics of the Ministry of Planning and Investment.

It’s time to promote the development of REITs: association

Vietnam needs to improve the legal framework to promote the development of real estate investment trusts (REITs) to add capital to the property market while bank credit and corporate bond issuance were being tightened.

How much can doctoral degree holders earn in Vietnam?

A monthly income of VND8 million revealed by a lecturer at the Hanoi National University has stirred up the public.

Joining world logistics passport to facilitate VN's trade

Joining the world logistics passport (WLP) initiative could help enterprises reduce logistics costs and increase competitiveness for exports.

Vietnamese female director’s film project invited to Cannes Film Festival

Tam van phong dao (Knife Throwing Board ) of female director Nguyen Phan Linh Dan is the only developing film project from Southeast Asia invited to attend La Fabrique at the 2022 Cannes Film Festival scheduled to take place from 17 to 28 May 2022.

Real estate brokers scramble to get licences to avoid big fines

The number of real estate brokers flocking to get licences to avoid punishment has skyrocketed.

Experts argue about history requirement, teachers and students wait for decision

History teachers and headmasters of high schools said they are impatient to know the results of the arguments about the teaching of history as the new academic year nears.

Japan to welcome back foreign tourists but not from Vietnam

The Japan National Tourism Organization (JNTO) announced that the Japanese Government had decided to welcome back international visitors from June 10, but Vietnamese will still be restricted from traveling to Japan.

Glass-walking bridge in Moc Chau wins Guinness world record

The Guinness World Records has announced that the Bach Long (White Dragon) glass walking bridge in Vietnam's northern province of Son La is the world's longest glass-bottomed bridge.


Tan Son Nhat airport flights delayed due to rain


FDI disbursement up 7.8 percent in five months

High costs and legal impasses hinder LNG energy development in Vietnam

Too many variables and over-reliance on imports have been hindering Viet Nam's plan to build power plants running on liquefied natural gas (LNG), industry experts have said.

Three Vietnamese military officers awarded UNHQ medal

The United Nations on May 26 awarded its medal to three officers of the Vietnam People’s Army who are working at this organization’s headquarters in New York, USA, on Peacekeeper’s Day (May 29).