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Dinh Vu


Last updated: Friday, October 19, 2018


Vietnam Remains Attractive to Japanese Investors

Posted: Friday, December 01, 2017

Economic and political stability, opportunities brought back from mergers and acquisitions (M&A) promotion together with large state-owned enterprises equitisation in fields of transportation, infrastructure, food and agriculture, telecommunication, trade and service, tourism and construction are the top attractions for Japanese investors, according to a representative from Ministry of Planning and Investment after attending the Nikkei Review Forum on “Hanoi – A highlight in Vietnam’s growth prospect” held in mid November.

In recent years, Japanese corporations have been very active in the equitisation of Vietnamese enterprises and have become strategic partners of many large enterprises in such key sectors and fields as finance, banking, aviation, energy and pharmaceuticals. The number of Japanese enterprises present in Vietnam increased sharply in the period of 2005-2016, from 194 enterprises in 2007 to 1,716 in 2016, resulting in the increase of FDI capital to nearly 1.7 trillion yen, compared with 820 billion yen in 2007.

At present, the Government of Vietnam is focusing on improving legal framework to facilitate the implementation of public-private partnership (PPP) model in infrastructure development, in which attracting domestic and foreign investors is given special attention, with flexible capital contribution and mechanism. This is the field in which Japanese investors have strength, thus it will be attractive opportunities to Japanese corporations, said Mr Shosuke Mori, Deputy General Director of International Banking Unit, Sumitomo Mitsui Bank.

Since 2016, the Vietnamese Government has paid special attention to the promotion of the environment for start-ups, connecting regional and global start-ups. Policies produced and actions taken by the Government in this area have paved the way for foreign investors and foreign-invested economic organisations to invest in Vietnamese start-ups by simplifying their capital transfer and overseas profit transfer procedures. That is very attractive to Japanese investors.

Another attractive factor to Japanese investor in particular and foreign investors in general is that the number of enterprises registered on the stock market will sharply increase in one to two years when the Government has made a good implementation of equitisation of State owned enterprises. Moreover, some products which will be put into trading on the stock market will increase in attractiveness, investment opportunities such as: security warranty expected to be put into trading by the end of 2017; bond futures in derivatives market put into trading in 2018. Several other derivatives are being researched to enter into trading in 2019 and 2020.

In addition, there remain some Vietnamese traditional attractive factors to Japanese investors and enterprises such as the high proportion of working population, hard-working labourers, near geopolitical position to Thailand and China, the increasingly improved and eco-friendly business environment, the cultural similarities between the two countries and particularly the economic and political stability.

Nguyen Thanh

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