return icon Vietnamnet.vn

Vietnam is No 1 destination for Japanese investors

Of 81 businesses receiving support from the Japanese government, 37 have decided to invest in Vietnam, while 19 have chosen Thailand.

 

 

{keywords}

Minister and Chair of the Government Office Mai Tien Dung

 

 

Speaking at a conference with Japanese enterprises in Vietnam on December 21, Minister and Chair of the Government Office Mai Tien Dung said Vietnam has resumed economic activities in a new normal status and that FDI continues to flow into Vietnam.

He reported that the government has instructed ministries, branches and local authorities to implement solutions to recover the economy.

Vietnam estimates a GDP growth rate of 2.6-3 percent this year, becoming one of a few economies in Asia Pacific and the only economy in Southeast Asia maintaining a positive economic growth rate. It is one of the 16 most successful emerging economies amid the pandemic.

Impressed by the high GDP growth rate and the record import and export value of $489 billion, Japanese Ambassador to Vietnam Yamada Takio said the ‘prescription’ for Vietnam to quickly recover its economy includes resuming commercial flights, improving disbursement for public investment, attracting foreign investment and reforming administrative procedures.

Takio said the Japanese government is gathering strength to recover its economy in the post-Covid-19 period with a bailout of $2.3 billion.

Of 81 enterprises receiving support from the Japanese government, Vietnam is the biggest choice for Japanese investors with 37 businesses choosing Vietnam as the destination.

Thailand is the second favorite destination, chosen by 19 enterprises. As many as 55 Japanese enterprises have decided to set up head offices in Vietnam.

The figures, according to the ambassador, shows the high expectations that Japanese enterprises have put on Vietnam and their confidence in Vietnam’s development outlook in the time to come.

However, Japanese enterprises have also complained about the difficulties they have met in Vietnam.

Hiroyuki Ishige, finance director of Hoya Glass Disk Vietnam II, complained that the Hung Yen provincial Taxation Agency refused to recognize the corporate income tax (CIT) preferences that the company should have enjoyed.

As a result, the company may have to pay additional tax of up to $50 million for the next 10 years. Meanwhile, according to the investment license, the enterprise can enjoy preferential tax rate of 10 percent for 15 years, tax exemption for four years and 50 percent tax reduction in the next five years.

Other Japanese enterprises complained that the licensing procedures are complicated, which consumes time and money of enterprises.

Some enterprises complained about the strict requirements on environmental impact assessment (EIA) reports and problems in entry/exist procedures for specialists and investors.

In the case of Hoya Vietnam, Duong Duc Huy from the General Department of Taxation (GDT) explained that the products of the enterprise are magnetic discs, which do not belong to ' computer manufacturing, so they are not subject to a preferential CIT. 

Thu Ha

Hundreds of million of dollars pouring in from Japanese investors

Hundreds of million of dollars pouring in from Japanese investors

Many Japanese groups are investing in Vietnamese enterprises instead of setting up their production and business facilities in Vietnam.

FDI forecast to flow into supporting industries as investors set up new supply chains

FDI forecast to flow into supporting industries as investors set up new supply chains

Foreign direct investment in supporting industries is expected to spike in the coming months as more and more foreign companies establish production facilities in Vietnam and seek to develop supply chains here, experts said.

MORE NEWS

Vietnam to attend ASEAN Tourism Forum 2023 in Indonesia

Vietnam will participate in ASEAN Tourism Forum (ATF) 2023 themed “ASEAN: A Journey to Wonderful Destinations”, and the Travel Exchange (TRAVEX) trade fair in Yogyakarta, Indonesia from February 2 – 5.

Hanoi and Ho Chi Minh City among safest cities in Southeast Asia

Hanoi and Ho Chi Minh City have both been included in a list of the safest cities in Southeast Asia, as compiled by statistics site Numbeo.

Action plan issued to accelerate national anti-corruption strategy building

Deputy Prime Minister Le Minh Khai, head of the steering committee on building the national anti-corruption strategy by 2030, has signed a decision on the issuance of the committee’s action plan.

VIETNAM BUSINESS NEWS JANUARY 31/2023

Latest guidance on one-way money transfers from Viet Nam

HCM City proposes removing hindrances to develop real estate market

Ho Chi Minh City authorities made a proposal to clear bottlenecks for healthy and sustainable development of the real estate market.

More high-value foreign investment projects needed as tax policies change

Vietnam needs to improve FDI quality, attracting high-tech projects that promise to bring higher added value.

Khmer's ginger cake of love and faithfulness

The ginger cake of the Khmer ethnic group in Soc Trang Province is a beloved traditional treat that is often offered to ancestors on important anniversaries such as the Tet (Lunar New Year) festival.

HCM City promotes digital transformation in education

Digital transformation is considered key to improving education and training quality, as proven by the effect of HCM City actively applying digital transformation over the past five years.

Hanoi to close fruit shops lacking proper food safety preparations

The capital city of Hanoi encourages the expansion of safe fruit businesses while clamping down on fruit shops that do not comply with food safety protocols, specifically street vendors.

Dutch diplomat donates Vietnamese paintings to national museum

Vietnam National Fine Arts Museum has received two paintings from former deputy ambassador Ellen Berends of the Netherlands to Vietnam.

Hanoi's unique rice cooking contest in photos

On the 8th day of the first lunar month each year (January 29, 2023), Thi Cam village in Hanoi’s Nam Tu Liem district holds a rice cooking contest.

Hanoi proceeds with park revitalization program

The implementation of Hanoi leaders’ promise to revive parks has begun: admission to Thong Nhat Park is now free after the removal of the fence, and Con Coc Flower Garden has a new look. However, there are still many things that need to be done.

Vietnamese farmers on board the ‘digital agriculture train’

In the digital era, next-generation farmers can fertilize and water their fields in Binh Phuoc from afar, even in a different country.

Vietnam forecast to become second-largest economy in Southeast Asia by 2036

2023 is predicted to be the year of many challenges for the Vietnamese economy due to the gloomy outlook of the global economy and multiple crises.

Prenn Pass leading to Dalat to be closed for expansion

Vehicles will be banned from using the seven-kilometer-long Prenn Pass to travel to Dalat City as work on the pass upgrade and widening project begins on February 6.
back_to_top