More than 60 percent of Japanese businesses plan to expand their future operations in Vietnam, according to a survey conducted by the Japan External Trade Organisation (JETRO).

The figure was revealed at a seminar in Ho Chi Minh City on February 12.

Managing Director Yasuzumi Hirotaka said Japanese firms based in Vietnam hope to receive more active support from the Vietnamese Government; close to 70 percent of the firms specifically expect the host to simplify customs clearance formalities and push forward with reform programmes.

Despite the improvements in the Vietnamese investment environment, half of the surveyed Japanese enterprises consider the increasing labour cost and complicated administrative and tax procedures to be the major risks they face.

The Vietnamese Government has been called on to continue assisting domestic businesses to develop the support industry and increase their competitive edge in production cost, given the rate of using locally-produced components in Vietnam in 2014 only increased by 2.5 percent against the previous year.

The annual survey has been conducted since 1987 by the JETRO to understand the business activities of Japan-affiliated companies in Asia and Oceania, including Vietnam.

The surveyed firms operate in wide range sectors, including automobiles, machinery, chemical and pharmaceutical products, food, textiles, retail, transport, ICT and finance.