Illustrative image (Source: VNA)Hanoi (VNA) – Vietnamhas been an attractive destination for Japanese investors and experts predictedthat more Japanese firms will come to do business in the Southeast Asiancountry thanks to its economic growth and integration advantages.
At the Mergers & AcquisitionsForum 2019 that took place in Ho Chi Minh City in early August, Tamotsu Majima,senior director of Recof Japan, said that transactions of Japanese firms withVietnam reached a record figure, with 21 transactions in the first seven monthsof 2019.
A report issued by the JapanExternal Trade Organisation (JETRO) in early 2019 showed that 65.3 percent of787 Japanese enterprises in Vietnam enjoyed high profits in 2018.
The localisation ratio of thefirms rose from 23.7 percent in 2008 to 36.3 percent in 2018, showing their commitmentsfor long-term operations in Vietnam, according to the report.
Takimoto Koji, JETRO Chief Representativein HCM City, noted that in 2018, Japan was the biggest foreign investors inVietnam with combined registered capital of 7.98 billion USD in 630 projects.
As many as 70 percent of Japanesecompanies in Vietnam said that they will expand their operations in Vietnam in2019, mostly in the manufacturing, trade, service, retail and real estatesectors, he said.
Koji revealed that on September11, a delegation of 47 Japanese businesses in fisheries, manufacturing, wine,functional food, breeding, and confectionary will visit Vietnam to seek partners.
Japanese companies are focusingon mergers and acquisitions. According to the Ministry of Industry and Trade,of 755 million USD of Japanese investment in the first seven months of thisyear, 374 million USD was poured into M&A deals.
Masahiro Kotaka, CEO of KPMGJapan, said that the Vietnamese and Japanese economy are getting closer, givingmore chances for businesses of both sides to foster their partnerships.
At the M&A Forum 2019,Japanese firms also expressed their belief that the flow of Japanese investmentin Vietnam will continue to rise in the coming time.
Due to the fierce competitionfrom investors from other Asian countries in Vietnam, they should work harderto gain successes in the Vietnamese market, Kotaka stressed.-VNA
VNA
