Many Japanese firms have a tendency to switch from China to Southeast Asian countries, with Vietnam being seen as a favorite destination, according to the mayor of Ishikawa Prefecture.
The prefecture has just done a survey of Japanese companies that are investing overseas, Mayor Tanimoto Masanori said on Tuesday at a meeting with a visiting delegation from the Vietnam Chamber of Commerce and Industry (VCCI) and Can Tho City.
According to a report on Tuoi Tre News Paper, half of the companies surveyed said they had planned to move their business from China to Southeast Asia, Masanori said without specifying the sample of the survey.
Vietnam has emerged as a destination favored by these firms, he added.
The VCCI has carried out a similar survey of Japanese businesses, Vo Tan Thanh, the chamber’s vice-president, said at the meeting.
Sixty-five percent of the Japanese firms surveyed said they would invest in Vietnam instead of China, Thanh said without mentioning the total number of businesses polled.
Vietnam ensures stability and a safe investment environment for foreign companies in general, and Japanese firms in particular, amid an escalating U.S.-China trade war, he added.
Seventy percent of the Japanese companies in Vietnam said they had planned to expand their business, the VCCI vice-president quoted the survey.
“This shows Japanese businesses are achieving good results in Vietnam,” Thanh said.
Sony Corp has announced plans to close its Beijing smartphone plant, while Nintendo also wants to shift part of the production of its Switch gaming console to Vietnam from China, Reuters reported.
Read full report on Tuoi Tre News