Vietnam leads the region in the rate of Japanese businesses wanting to expand.

More than 56% of Japanese enterprises surveyed plan to expand their business in Vietnam in the next 1-2 years, the highest rate in Southeast Asia.

This is the result of the Survey on the Current Status of Japanese Enterprises Investing Abroad in the 2024 Fiscal Year, announced by the Japan External Trade Organization (Jetro) on December 12.

Accordingly, the average rate of Japanese enterprises wanting to expand their operations in Southeast Asia is 46.3%. In Vietnam, this figure is more than 56%. Compared to 2023, this result decreased by 0.6 percentage points but is the highest in the region and surpassed Laos - the leading country last year.

By industry group, over 48% of manufacturing enterprises want to expand, other sectors (63%). Particularly, the percentage of enterprises in the electrical equipment, electronics and transportation industry with this intention increased by 20 points. All Japanese retail and food businesses in Vietnam surveyed want to increase their presence.

Customers shop as Uniqlo's 26th store opens in District 8, Ho Chi Minh City, November 8. Photo provided by the company

Businesses said they plan to invest more in the next 1-2 years due to expanding domestic market demand and increased exports. Similar to previous years, they focus on improving and expanding sales services, followed by increasing product diversity and high added value.

This year, the business situation of Japanese enterprises in Vietnam has improved. Nearly 49% forecast that business activities will improve compared to 2023, up 16.8 points and ranking first in ASEAN. Along with that, the rate of expected profits is 64.1%, up 9.8 points. This is the first time in 5 years that this rate has exceeded 60%.

The positive situation has helped Japanese businesses in Vietnam expect to increase salaries by an average of 5.4% this year. "Wages in Vietnam are among the average in the region, but the salary increase rate is among the highest," the report said.

According to the Ministry of Planning and Investment, Japan ranked fifth out of 110 countries and territories investing in foreign direct investment in the first 11 months of the year, with registered capital of more than 3.61 billion USD, accounting for nearly 11.5% of total investment capital.

Source