Vietnam is among the countries in which Japanese companies have the highest motivation to expand.
According to a recent survey by the Japan External Trade Organization (JETRO), 69.5% of Japanese firms polled say they want to expand their businesses in Vietnam in the future.
Current increases in profits are their main motivator according to 88% of the companies. Potential market growth is another important factor mentioned by 46% of responders, Tuoi Tre reports.
According to Takimoto Koji, head representative of the JETRO's Ho Chi Minh City office, the percentage of Japanese businesses that were profitable is 65.1%, including 67.6% of those in manufacturing.
Despite being perceived as a potential market with a positive growth rate, social and political stability, and cheap labor, there are still many drawbacks such as language barriers, limited resources for raw materials, and an incomplete legal system which leads to a lack of transparency, increased labor costs, and bureaucratic tax procedures.
The survey – conducted from October 10 to November 10 last year – polled 4,630 Japanese companies across 20 countries from Southeast Asia, Southwest Asia, and Oceania. 1,345 of them are currently operating in Vietnam, from whom 652 valid responses are recorded.
Other countries that scored high on the business motivation rates are Pakistan (81.3%), Myanmar (70.7%), and India (69.6%).
[Photo via Thanh Nien]
