Vietnam remains Japanese investors’ top pick

An increasing number of Japan’s foreign direct investments in the first seven months this year shows that the Eastern Asian country recovered from the earthquake and tsunami in March.

Many Japanese investors visited Vietnam to seek cooperation opportunities in July and August.

Among them is the industrial conglomerate Marubeni – one of the world’s 500 biggest groups.

The Japanese giant entered a strategic agreement with Vietnam’s leading textile maker Vinatex in May.

The cooperation will beef up Vietnam’s textile export to Japan, says Katsuhisa Yabe, head of textile department of Marubeni.

Statistics show that the turnover of Vietnam’s textile export to Japan increased more than 20 percent last year, amounting to US$1.2 billion, thanks to the Vietnam – Japan Economic Partnership Agreement.

Japan is Vietnam’s third largest apparel importer.

Marubeni also inked an agreement with food supplier Dofico to cooperate in producing and distributing feed and agricultural products.

The Japanese conglomerate expects that the cooperation will help it become Vietnam’s agricultural product and feed manufacturer.

Among 92 countries and territories making foreign direct investments (FDI) in Vietnam, Japan ranks fourth, carrying out more than 1,500 projects with the total registered capital of around $22 billion, according to the Ministry of Planning and Investment.

Figures from the ministry also indicate that there are Japan’s 94 FDI projects worth $720 million in the first seven months of the year.

Most of the investments were pumped into sectors that Vietnam’s government is fostering, including auxiliary and hi-tech industries.

Japanese economists say Vietnam’s stable politics and low-cost workforce attract Japan’s investors.

The number of Japanese investors in Vietnam soared to 1,000 last year from around 200 in 2005 and 2006, according to Japan’s Nikkei Weekly.

Vietnam is considered as a very potential consumption and export market as it has the ASEAN’s second biggest population after Indonesia.

Tags: invest in Vietnam, Vietnam FDI, Vietnam FDI 2011, Vietnam investment