Vietnam to continue to attract Japanese investors

An economist from Waseda University in Japan said Vietnam has become an attractive destination for Japanese investors thanks to the country’s improved investment climate in recent years.

Professor Tran Van Tho, who is also member of the Economic Advisory Group for the Vietnamese Prime Minister, said cultural similarities between the two countries also help promote their economic cooperation. Japan was Vietnam’s largest foreign investor last year with over 2,500 companies operating in the Southeast Asian country.

Tho said Japan’s future investment in Vietnam will focus on manufacturing, adding that the country should encourage Japanese firms to pour money into food and support industries.

Alongside Japan, China has been also one of the Asian nations most increasing investment in Vietnam. The country became the fourth largest foreign investor in Vietnam in 2017. China’s strong development and increasing investment abroad will also impact greatly on Vietnam’s economy in the coming year.

Tho said that tax reduction in line with signed free trade agreements will open a wider market for Vietnamese businesses but also pose a challenge to their competitiveness.

Source: VOV5

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