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Date: 2014-03-10 15:32:53
Take advantage of opportunities to Thailand + 1
Mr. Yasuzumi Hirotaka - Managing Director of JETRO in HCM City said: Take advantage of opportunities to "Thailand + 1".

Organization of trade promotion and investment of Japan (JETRO) has announced the results of the survey nearly 500 Japanese businesses to invest in Vietnam. Although the number of confirmed businesses will expand investment remained high but no less material units that are problematic for them.

Talking with Tuoi Tre Newspaper, Mr. Hirotaka Yasuzumi said: The survey results show that more than 70% of Japan's business investment activities in Vietnam have planned to expand investment and production. The main reason is the growth in revenues for the manufacturing sector, while the service sector of the market potential is great. Market size, growth potential is 54.9% of the nearly 5000 enterprises in Japan now operate in 20 countries around the world to answer that is dominant in which they invest, This figure is 52.3% in Vietnam. This proves that they are doing well in Vietnam market.

However, more than half said that business investment in Vietnam has many risks, this rate increased over last year. On the other hand, the investment environment in Vietnam in 2013, then decline over the previous year. Most significant is the complicated customs procedures (up 16%) to 64.5% of firms answering "problematic" in the field of customs. Administrative procedures are complicated and time consuming for permit investment ... But that's not the biggest obstacle, the core problem that Japanese enterprises told us is very difficult to find materials in Vietnam market should not be cutting costs.

* For many years experience to participate in researches of the investment environment in Vietnam, according to you, how to raise the localization ratio in Vietnam up?

- You can see the reflection of the enterprises was somewhat alarming to the development of supporting industries in Vietnam very weak. This will be a major influence on the investment environment and undermine the development of Vietnam enterprises in this field. In my opinion, the creating momentum support for Vietnam enterprises supporting industrial development is very important. The Government of Vietnam has seen this but how should policies support specific and explicit strategies.

In addition to the basics such as preferential interest rates, tariffs and support the development of human resources for Vietnam enterprises participating in this area there is great problem is the market. Specifically, for the development of support industries, there must be a large consumer market. Currently, the domestic consumption market of Vietnam Vietnam is very small so should capture trends as Thailand + 1 of the Japanese enterprises in Thailand since wages in Thailand are rising up the business this is now looking to other sources in order to reduce costs.

* You can further analyze the shift of capital from China, Thailand to Vietnam in the coming time?
- The trend that we call China + 1, derived from the Japanese businesses wants to reduce risk in the Chinese market, Japanese enterprises find another country to invest into. In coming time, if China did not participate in the TPP are not only Japanese enterprises in China but the Chinese enterprises will also perform in this way. Not completely withdraw investment in China but they will seek to diversify by opening factories in other countries to which Vietnam is one of the top choices. Also about Thailand + 1 strategy is as I have said, the Japanese enterprises in Thailand are finding other sources besides Thailand, this is a very new trend and a new start up phase still very small. Many Japanese enterprises have begun this work in experimental markets such as Cambodia, Laos ... I think Viet Nam wants to capture this trend needs to show the advantages of their attracting investment. Especially the southern region of Vietnam, this area is the corridor linking Thailand, so traffic road or sea only takes three days. If South Vietnam which is engaged in supply chains from Thailand, I think the potential is there.

Đình Dân (Tuoi Tre Newspaper)

Source: Tuoi Tre Newspaper (3rd March, 2014)
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