Over half of Japanese companies in Vietnam report 2023 profits: survey
Saturday, December 16, 2023, 11:05 GMT+7
The latest preliminary report from the Japan External Trade Organization (JETRO) revealed that, as a whole, Japanese enterprises are thriving in the Vietnamese market.
According to the "Survey on the International Operations of Japanese Firms 2023," released on December 12, over 50 percent of Japanese companies based in Vietnam reported profits in 2023.
According to the survey, among the nearly 900 enterprises that provided answers, 54.3 percent shared that they are projecting to end 2023 in the green.
This figure, however, is 6.6 percentage points lower than the average rate in the Association of Southeast Asian Nations (ASEAN).
In addition to those expecting profits, 50.4 percent of surveyed companies expressed a positive outlook for increased revenues in 2024.
Of the respondents, 32 percent reported that their profits had improved in 2023 compared to the previous year, a 15.6 percentage point decrease from 2022.
According to survey participants, there was a general consensus that "the increase in the need for manufacturing in export markets", and "the increase in the need for non-manufacturing in the domestic market” were amongst the major drivers of profits in 2023.
Additionally, "improving performance" and "cutting costs" ranked high among the factors contributing to a successful year.
Regarding intentions to expand operations in the next one to two years, 56.7 percent of them indicated expansion plans, a 3.3 percentage point decrease compared to 2022.
Among these, 62 percent of enterprises expanding their sales function were driven by an increased demand in the domestic market.
According to data released by the Ministry of Planning and Investment, Japan was among the top 10 countries or territories with the largest investments in Vietnam in the first 11 months of 2023.
In recent discussions with Tuoi Tre (Youth) newspaper, many Japanese enterprises expressed a positive outlook on the local business landscape, as well as plans to invest further in the Vietnamese market.
From August to September, JETRO conducted a survey over Japanese companies operating in Vietnam through emails and an online survey platform.
JETRO approached entities in the survey with at least a 10 percent capital investment from Japan, including Japanese company branches or representative offices in Vietnam.
A total of 849 enterprises provided eligible answers in the survey.
Additionally, JETRO conducted a survey of Japanese enterprises operating in 20 countries or territories in Asia and Oceania, allowing a comprehensive comparison of the current operations of Japanese companies in Vietnam and other regions through diagrammatic representations in the reports.
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