Vietnam Leads in Japanese Business Expansion Plans

A recent survey by the Japan Trade Promotion Organization reveals that despite a 0.6-percentage-point decrease from last year, Vietnam still tops Southeast Asia in the rate of Japanese firms eyeing expansion. This marks a shift from Laos, which previously held the top spot.

Expansion Plans Across Sectors

All retail and food services businesses in Vietnam are planning to expand. Manufacturing firms show a 48% expansion rate, while non-manufacturing companies stand at 63%.

Investment and Profitability Outlook

Japanese businesses are increasingly investing in Vietnam to leverage its growing domestic demand and export potential. A significant 49% expect their performance this year to surpass that of 2023, marking the highest increase among ASEAN countries.

Moreover, the rate of firms anticipating profitability in 2024 has risen by 9.8 percentage points to 64.1%, the first time in five years it has exceeded 60%.

Salary Growth and Investment

Japanese firms project a 5.4% salary hike in Vietnam this year, reflecting the country's competitive salary growth rate in the region. Japan's investment in Vietnam is also noteworthy, ranking fifth among 110 countries and territories with US$3.61 billion, representing 11.5% of total foreign direct investment.