Vietnam has emerged as a promising and large scale production hub for Japanese businesses in the Southeast Asia region after many factories in Thailand are out of service due to devastating floods in late 2011, said daily news Nikkei.
Many Japanese investors and enterprises are looking to invest in Vietnam after the March 11 earthquake and tsunami.
According to the Japan’s leading economic and business online newspaper, JS Group Corp has decided to invest 30 billion JPY to build a company specialized in window sash, Kobe Steel poured 100 billion JPY to construct a steel mill. Meanwhile, wholly-foreign-owned companies Canon and Honda are boosting their presence in the nation with a total investment of around 23.5 billion JPY.
Statistical figures from the Japan External Trade Organization (JETRO) showed that, last year, Vietnam was home to 208 valid Japanese projects with total registered capital of 145 billion JPY.
Workers at the Canon Vietnam Co., Ltd in the Dong Anh district-based
Thang Long Industrial Park. (Source: http://www.baohaiquan.vn)
Nikkei reported that Vietnam has a large potential in service sectors and industries, thanks to the country’s young population (75% under 40 years old), diligent workforce and low labor costs (as little as one-third of compared to China).
Vietnam, a country which firms saw as having a stable political climate and an attractive investment environment as well as possessing the advantage of being near Japan geographically./.