Many Japanese manufacturers, mainly those active in technology, are hesitant to invest in Vietnam due to difficulties recruiting skilled workers and finding material supply.

Various Japanese enterprises are planning to expand their investment in Vietnam, where business insiders of Japan assess as the second most attractive investment destination after the US.

Japanese businesses view the Vietnamese market an attractive investment destination in the medium and long run, according to Toru Aguin, chief representative of Japan Bank for International Cooperation (JBIC) in Vietnam.

Japanese shareholder Sumitomo Mitsui Banking Corporation (SMBC) has announced the termination of a strategic alliance agreement signed with Vietnam Export Import Commercial Joint Stock Bank (Eximbank).

It is often heard that Japanese companies have difficulty doing business in and transferring technology to Vietnam because of the great institutional distance.  

An investment promotion conference was held in Tokyo on July 1 where Prime Minister Nguyen Xuan Phuc said Vietnam will be the “promised land” for Japanese investors.

Vietnam remains the most attractive investment destination for Japan’s manufacturing firms in the medium-term prospects, according to the Japan Bank for International Cooperation (JBIC).