Japan’s total investment in Vietnam amounted to US$1.8 billion last year with 208 companies seeking for its low cost labour in a fast growing market.
Shniya Nakao, manager of Izakaya Yancha, a Japanese chain of restaurants who is operating well in Vietnam, said it plans to expand business across the country.
The continuing inflow of Japanese investment is considered a boom for Vietnam, despite the fact that many investors are still worried about the macroeconomic situation in Vietnam.
It is because the Japanese is struggling with many difficulties arising from the aged population growth.
Tony Foster, CEO of Freshfields Bruckhaus Derinnger law firm in Vietnam, said Japanese businesses have become ever more eager to invest abroad since the earthquake and tsunami badly hit the country in March last year.
They realize that they cannot survive if they continue operating in Japan only, said Foster.
Some large export producers including Bridgestone and Panasonic plan to open new factories in Vietnam as they only have to pay one-third or half of US$300 for a worker’s monthly salary as required by workers from companies in southern China.
Japanese companies highly appreciate the political stability in Vietnam and they will not be discouraged by demand for higher payment from Vietnamese workers.
Tamron, a leading Japanese company in the production of photographic lenses, and optical components, is prepared to build a US$13 million factory near Hanoi and employ about 2,000 workers.