By Andrew Batt:
More Japanese investors in Thailand are considering investing in Vietnam as their favoured business destination.
Hirotaka Yasuzumi, Managing Director of the Japan External Trade Organization (JETRO) spoke to reporters in in Ho Chi Minh City recently, noting that Japanese investors have shown interest in Vietnam because labour costs in Thailand are rising.
A trend of Japanese companies in Thailand switching to Indochina began last year, and the pace has increased in 2013 although Japanese investment in Thailand is currently more than three times that in Vietnam.
The biggest obstacle to Japanese businesses wishing to invest in Vietnam is the lack of supporting industries, Yasuzumi said.
In 2012, Japanese investment was responsible for more than half of the total foreign direct investment in Vietnam. This year to date they have have poured more than US$3.7 billion into the country.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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