Japan’s investment in Vietnam soars 90%
Japanese investors poured approximately US$3.4 billion into Vietnam from January to October 2021, soaring 90% compared with the same period last year.
|A man works at a Japanese-invested company in Vietnam. – SGT Photo: Hung Le|
According to the Ministry of Planning and Investment, Japan was Vietnam’s third-largest investor after Singapore and South Korea, accounting for 14.3% of the total foreign investment pledged in the country. In the period, investors from 97 countries invested in Vietnam.
Japanese investors gained approval for 150 new projects in Vietnam from January to October, with registered capital totaling US$2.43 billion, increasing by nearly US$2 billion from the same period last year.
Besides, 105 Japanese enterprises invested over US$741 million to expand their operations in Vietnam, up US$372 million from the same period last year.
However, Japanese investors conducted only 170 transactions to contribute funds and acquire shares in local firms with a total capital of some US$215 million, dropping sharply compared with 473 transactions worth US$943 million from January-October 2020.
The Japan External Trade Organization (JETRO) in Vietnam said Japan’s increasing investment would boost production and trade in Vietnam.
The latest report of the Ministry of Planning and Investment on economic cooperation between the two countries showed that Japan is one of the most important business partners of Vietnam.
According to the Foreign Investment Agency, as of late October 2021, Japan ranked second among 141 countries and territories investing in Vietnam, with 4,765 projects worth US$63.94 billion.
A Japanese project costs over US$13.4 million on average, higher than the average of US$11.7 million of foreign-invested projects in Vietnam.
Up to now, Japan has invested in 57 of 63 cities and provinces in Vietnam. Thanh Hoa Province attracted the most investment from Japan with US$12.5 billion, accounting for some 19.6% of the total.
Japan has invested the most in the manufacturing industry, power production and distribution and real estate.
Many leading Japanese firms such as Toyota, Honda, Canon, Panasonic, Yamaha, Suzuki, Mitsubishi, Marubeni, Sojitz, Idemitsu and Mitsui have invested in Vietnam.
Vietnam and Japan have launched Phase VIII of their Joint Initiative, focusing on 11 issues aimed at further improving Vietnam’s business and investment climate.
Japanese investors have poured billions of dollars to purchase stakes at Vietnamese businesses over the past decade.