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Majority of Japanese firms willing to expand operation in Vietnam: survey

Xinhua, February 5, 2015 Adjust font size:

A total of 66 percent of Japanese companies said they wished to continue expanding operation in Vietnam and considered Vietnam as an important investment destination, local media quoted a survey result as reporting on Thursday.

The information was released during a meeting between Japan External Trade Organization (JETRO) and Vietnam's Ministry of Planning and Investment (MPI) held recently in capital Hanoi, Vietnamese government's website reported.

The survey carried out by JETRO on production, trading situation of Japanese companies in Asia and Oceania in 2014 showed that most Japanese firms pay attention to four issues including expansion of their operations in Vietnam, risks in investment environment, material and accessory supply, as well as prospects for economic integration.

According to the survey, Vietnam ranked third among 15 countries on the list of incomplete legal system which does not operate transparently. Half of surveyed companies complained about complexity in Vietnam's administrative mechanism and high labor costs while praising the country's improvement in procedure reforms and infrastructure development.

However, the situation in material, accessory supply of Vietnam remained unsatisfactory to Japanese companies, said the survey, citing that the localization rate of Vietnamese products reached 33.2 percent in 2014, 1 percent higher than 2013. Meanwhile, the localization rates of China and Thailand were 66 percent and 55 percent in 2014, respectively.

In order to increase competitiveness of Vietnam in terms of costs, the country should assist companies in supporting industries by loans with low interest rates, preferential taxes and human resource training, the survey proposed.

JETRO's survey has been carried out since 1987, with an aim to help facilitate investment environment of Japanese companies in Asia and Oceania.

In 2014, the survey was conducted among 10,078 Japanese companies in 20 countries and regions, according to the website of MPI. Endi