Vietnam becomes bigger source of earnings for Japanese firms

Vietnam has surpassed Malaysia to become a bigger source of earnings for Japanese firms, according to the Bank of Japan.

Bank statistics, cited by Japan’s Kyodo News Agency, show that Japan’s foreign direct investment in Vietnam generated a total of revenue of 1.74 billion USD last year, up 70 percent from 2014, on the back of a growing number of Japanese businesses in Vietnam and strong economic growth. The number of registered firms at Japanese business associations in Hanoi and Ho Chi Minh City has risen by 250 since 2014 to nearly 1,500, as rising labor costs in China have prompted them to open plants in Vietnam. According to a survey by the Japan External Trade Organization, nearly two-thirds of Japanese businesses in Vietnam are profitable.

Source: VOV5

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