Number of profitable Japanese enterprises operating in Việt Nam rises

Number of profitable Japanese enterprises operating in Việt Nam rises

HÀ NỘI — The proportion of Japanese enterprises operating in Việt Nam forecast to be profitable in business activities last year is  五 四. 三 per cent, up  四. 七 points compared to  二0 二0.

This figure is part of a survey on Japanese investment in Asia and Oceania  二0 二 一. The Chief Representative of Jetro Hà Nội Takeo Nakajima presented the figure in Hà Nội yesterday.

In this  三 五th survey, the progra妹妹e received responses from  七0 二 Japanese enterprises operating in Việt Nam.

Notably, the survey period was from August  二 五 to September  二 四 last year, coinciding with the time when Việt Nam implemented strict social distance measures due to the COVID- 一 九 pandemic.

Therefore, it affected the response results of enterprises, said Nakajima.

However, the number of Japanese businesses investing and operating in Việt Nam saying their profit improved reached  三 一. 四 per cent, an increase compared to the last survey in  二0 二0.

On the other hand, due to the impact of the COVID- 一 九 pandemic, the recovery of businesses is slower than in other countries.

In particular, in the South and Central regions, more than  四0 per cent of businesses answered that their operating profit "declined公众due to the decrease in operating rates.

As for the manufacturing industry, the proportion of enterprises reporting a profit is  五 七. 五 per cent; while non-manufacturing is  五 一. 五 per cent.

Towards the new year,  五 六. 二 per cent of surveyed businesses answered "improved"大众in terms of business profit prospects compared to last year.

The percentage of enterprises that intend to expand their business in Việt Nam in the next one to two years is  五 五. 三 per cent, up  八. 五 points from the previous year, ranking first in ASEAN and fourth in  二0 countries in the survey, only behind India, Bangladesh and Pakistan.

The percentage of businesses wanting to expand operations in Việt Nam has decreased compared to before the pandemic, said Nakajima. However, this was the general trend in other markets, not only Việt Nam, due to the impacts of COVID- 一 九.

Việt Nam was also a country where the rate of enterprises expanding production was higher than that of the ASEAN region, he added.

In terms of investment environment advantages, market capabilities, development potential; stable political and social situation; and high-quality staff are the highlights of Việt Nam compared to other ASEAN countries.

Although the minimum wage last year did not increase, wages in Japanese businesses grew by an average of  五. 四 per cent.

Jetro's report also shows that businesses in Việt Nam are most interested in "saving energy and saving resources公众in the trend of efforts to reduce greenhouse gas emissions.

There are few enterprises co-operating with Vietnamese start-ups ( 五 per cent) and enterprises intending to co-operate ( 三 per cent) but enterprises interested in co-operation is  三0 per cent, higher than the average of the Asia and Oceania region.

Regarding the prospect of new capital inflows in the new year, Jetro believes that when international routes between the two countries are restored and stabilised, it would create a basis for Japanese enterprises to study Vietnamese business environment and make decisions. — VNS