Vietnam ranks 3rd in investment potential: Japanese Bank
Vietnam was chosen third most attractive business destination for business, according to a survey by the Japan Bank for International Cooperation (JBIC), up one place over last year.
JBIC recently unveiled the results of a survey conducted on Japanese manufacturers’ overseas business operations from July through September, targeting to identify the current and future trends of overseas business operations and foreign direct investment performances of Japanese investors.
The survey results attributed the rise to the inexpensive labor force, potential growth of market and less risk in the promising outlook of Vietnam and greater reorganization of Japanese community.
Vietnam’s third position, rising past Thailand this year, demonstrates the keen interest of Japanese businesses in the Southeast Asian nation.
According to the survey, small and medium-sized manufacturing enterprises viewed Vietnam as the second most promising country in the medium term just after its northern neighbor, China.
However Japanese firms said challenges that remain are poor infrastructure and an opaque and developing legal system.
Healthy bilateral trade
During a meeting between two leaders of the countries last October, both hoped bilateral trade would double to $15 billion by 2010.
The Vietnamese government also promised to continue to improve Vietnam’s investment environment to facilitate foreign businesses.
Japan is the number two market for Vietnamese exports after the US, according to Japanese statistics, and the fourth-largest exporter to Vietnam after China, Singapore, and Taiwan.
Bilateral trade is expected to reach $10 billion this year.
Japan is the largest official development assistance donor to Vietnam, having pledged $11 billion from 1992-2005, or about one-third of all international aid to the country in that period.
The 2006 survey of the Japan External Trade Organization (JETRO) showed that Vietnam ranked 4th on the list of Japan's 2005 overseas investment destinations after China, India and Thailand.
JETRO also reported that Japanese enterprises currently consider Vietnam as the best Southeast Asian country for mid and long-term investment.
Vietnam is popular partially due to its capacity to produce electronic components and equipment, JETRO said.
Source: VietNamNet – Compiled by Ha Dong |
