The Japan External Trade Organization (JETRO) released a survey on February 13 on Japanese enterprises investing abroad in 2022, including in Vietnam.

More than 600 of the 1,816 Japanese enterprises with investment in Vietnam took part in the survey. Regarding business direction in the next one or two years, 60 per cent of respondents said they will expand in Vietnam and only 1.1 per cent said they will lessen their investment or move to a third country. Japanese enterprises also see that the Vietnamese market has high growth potential and can increase their revenue by expanding markets and increasing exports.

They also noted that Vietnam’s business environment has the potential to grow but also faces many challenges, including ineffective administrative procedures and incomplete policies and regulations in foreign investment.

According to Mr. Matsumoto Nobuyuki, Chief Representative of the JETRO Office in Ho Chi Minh City, it is clear that Japanese enterprises are concerned about wasting time and cost on new business and investment procedures. “JETRO continues to work with the government to promote the efficient implementation of administrative procedures and contribute to supporting administrative procedure reform.”

The survey also noted that 59.5 per cent of Japanese enterprises investing in Vietnam were expected to have been profitable in production and business in 2022, up from 2021’s result and indicating post-pandemic recovery.