Japanese SMEs poised to flock to Việt Nam

The number of Japanese small and medium-sized enterprises (SMEs)  investing in Việt Nam will likely more than double in one year’s time, said Toshio Nakamura,  president of the Japan Chamber of Commerce & Industry.

“I believe the number of Japanese SMEs coming to Việt Nam will be more than double in the next one year,” Nakamura told the business matching session with Vietnamese enterprises held in Hà Nội on Monday.

The event jointly organized by the Việt Nam Chamber of Commerce and Industry (VCCI) and Japan Chamber of Commerce and Industry attracted up to 120 representatives who are executives of 100 Japanese groups and firms.

The SMEs delegation is active in the areas of trade, electronics, software, banking-finance, communications and manufacturing among others in Japan.

VCCI chairman Vũ Tiến Lộc said this is one of the biggest Japanese business missions to Việt Nam.

He pinned high hopes on an influx of Japanese SMEs investment into the country afterward.

Japanese SMEs had accompanied larger compatriots in previous times but now they want to seek business opportunities in Việt Nam by themselves, Nakamura said.

At an investment promotion seminar hosted earlier this year, Hideo Okubo, chairman of the Supporting Committee for Globalization of SMEs and the Tokyo Business Association, said up to 97.3% of Japanese SMEs in the manufacturing sector only operated within Japan.

Japan’s outbound investment is rather huge but it is mostly carried out by giant groups as smaller companies are not accustomed to investing outside the country, he clarified.

Besides, Nakamura explained to the Daily that the aftermaths of the disastrous earthquake in March 2011 have made the Japanese economy stagnant and the country’s Government has begun supporting SMEs in making outbound investment to cope with the situation.

The Japanese government realized that many industrial parks for supporting industries have been built in Việt Nam to pave the way for Japanese investment, he said.

And Việt Nam is always a favorable destination for Japanese investors, he noted.

Đinh Mạnh Hùng, deputy director of the SupportingCenter for SMEs, said Japan is one of Việt Nam’s most important partners, with total two-way trade last year worth over US$21.12 billion and pledged investment capital of more than US$26 billion.

Data of the Foreign Investment Agency indicates as of late last month, Japan had over 1,729 valid direct investment projects in Việt Nam with total registered fund of US$28.2 billion, topping 96 nations and territories investing in Việt Nam.

In the first eight months of the year, Japan also took the lead in terms of the number of projects and registered investment amounts among foreign investors in Việt Nam.

 Source: The Saigon Times Online

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