Japan's Auto Spare Parts Producers Cut 70 per cent of Capacity in Vietnam
Many Japanese automobile spare parts companies operating in Vietnam have slashed up to 60 per cent-70 per cent of their capacity, said Norikazu Onishi, chairman of the Japan Entrepreneurs’ Association in Ho Chi Minh City.
He added that most of Japanese firms’ business and production activities have been on the downtrend since November 2008 due to export difficulties, according to a recent survey by the association.
The survey also indicated that Japanese companies in Vietnam have gained better business outcomes. Particularly, Japan’s household electronics businesses are very successful in Vietnam.
The situation is resulted from the global economic slowdown which has pushed many companies across the world into difficulties, the chairman said.
Not only Japanese companies, but also a large number of Vietnamese ones, are facing challenges due to the world economic crisis.
Up to 7,000 firms in Vietnam reportedly have closed so far this year while 3,000 others have halted operations due to impacts of the global downturn, the state-run newswire of VietnamNet said.
Meanwhile, 31 per cent of 864 Vietnamese businesses disclosed that they are encountering lots of difficulties but hope to overcome, according to a survey on 864 local companies by the Vietnam Chamber of Commerce and Industry (VCCI).
Only 15 per cent believed that they would be better than last year, the VCCI said. (Youth)
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