According to the FY 2022 JETRO Survey on Business Conditions of Japanese Companies Operating Overseas (Asia and Oceania), up to 60 per cent of Japanese companies in Vietnam said they would “expand” their business in the next two years, up five percentage points from the 55 per cent recorded in the 2021 survey.

Japanese businesses expanding production and expecting improved profits indicates that Vietnam’s business and investment environment has changed for the better.

In southern Binh Duong province, Panasonic Electric Works Vietnam is constructing a new building at its factory to expand production systems, which is scheduled to be operational in 2023.

Another Japanese firm, Ajinomoto Vietnam, is also expanding its operations through the supply of new products with added value, in addition to its traditional products.

General Director of Ajinomoto Vietnam Tsutomu Nara said that despite the negative impacts of Covid-19 over the past three years, the company has attempted to overcome the difficulties and challenges to provide markets with quality products.

In early 2022, Japanese sanitaryware firm Toto Vietnam invested in a new faucet factory project in northern Vinh Phuc province with total investment capital of $100 million. It is expected to introduce the first batches of products in September.

With such positive developments among Japanese businesses in Vietnam, Co-Chairman of the Japan-Vietnam Economic Committee Hideo Ichkawa said that, since “Doi moi” (Renewal) was introduced in 1986, Vietnam has actively accelerated its market-oriented economy and expanded its infrastructure. It has now become an attractive market for Japanese firms in various fields.

Another JETRO survey conducted among parent companies in Japan pointed out that the appeal of the Vietnamese market is behind only the US, India, and Indonesia.

It is expected that the 50th anniversary of Vietnam-Japan diplomatic relations on September 21 will open up further prospects for increasing cooperation and exploiting new potential between the two countries.