Many Japanese firms have a tendency to switch from China to Southeast Asian countries, with Vietnam being seen as a favorite destination, according to the mayor of Ishikawa Prefecture.
The prefecture has just done a survey of Japanese companies that are investing overseas, Mayor Tanimoto Masanori said on Tuesday at a meeting with a visiting delegation from the Vietnam Chamber of Commerce and Industry (VCCI) and Can Tho City.
Half of the companies surveyed said they had planned to move their business from China to Southeast Asia, Masanori said without specifying the sample of the survey.
Vietnam has emerged as a destination favored by these firms, he added.
The VCCI has carried out a similar survey of Japanese businesses, Vo Tan Thanh, the chamber’s vice-president, said at the meeting.
Sixty-five percent of the Japanese firms surveyed said they would invest in Vietnam instead of China, Thanh said without mentioning the total number of businesses polled.
Vietnam ensures stability and a safe investment environment for foreign companies in general, and Japanese firms in particular, amid an escalating U.S.-China trade war, he added.
Seventy percent of the Japanese companies in Vietnam said they had planned to expand their business, the VCCI vice-president quoted the survey.
|Many Japanese businesses, politicians, and environmental activists engaged in a forum on sustainable development in Ishikawa Prefecture, Japan, on August 6, 2019. Photo: Tien Trinh / Tuoi Tre|
“This shows Japanese businesses are achieving good results in Vietnam,” Thanh said.
Sony Corp has announced plans to close its Beijing smartphone plant, while Nintendo also wants to shift part of the production of its Switch gaming console to Vietnam from China, Reuters reported.
On the same day, a forum on sustainable development took place on Kanazawa, the capital of Ishikawa, located on Honshu Island, with the participation of many Japanese businesses, politicians, and environmental activists.
Nguyen Phuong Lam, director of the VCCI branch in Vietnam’s Mekong Delta region, introduced the potential and sustainable development directions of the region’s localities at the forum.
This is a dynamic region with strong purchasing power and a quality workforce, suitable for Japanese companies to do business here, Lam said.
VCCI will organize a Vietnam-Japan trade and cultural festival in Can Tho in late November in a bid to connect Japanese enterprises with the Mekong Delta region.
A charter flight will bring businesses from Tokyo and Osaka directly to Can Tho to attend the festival, Lam said.
VCCI is a national organization representing business communities, employers and business associations of all economic sectors in Vietnam.
One of its main functions is promoting trade and business relations with enterprises abroad.