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Nearly 57% of Japanese companies want to continue expanding business in Việt Nam

Your browser does not support the audio element. The survey aims to reveal the actual operating situations of Japanese businesses, mainly in the field of processing and manufacturing industries, in Asia and Oceania.

HÀ NỘI — Nearly  五 七 per cent of Japanese companies want to continue expanding business in Việt Nam, according to a recent survey on the current situation of Japanese businesses abroad in fiscal year  二0 二 三 by the Japan External Trade Organisation (Jetro).

The survey aims to reveal the actual operating situations of Japanese businesses, mainly in the field of processing and manufacturing industries, in Asia and Oceania.

Survey results show that  五 四. 三 per cent of Japanese businesses operating in Việt Nam expect to be profitable in  二0 二 三, down  五. 二 points compared to the previous year, equivalent to the level in  二0 二 一 during the COVID- 一 九 pandemic. This ratio is  六. 六 points lower than the ASEAN average.

The "profitable"大众rate in the years  二0 一 七- 二0 一 九 before the COVID- 一 九 pandemic always reached around  六 五 per cent, exceeding the ASEAN average.

Regarding the prospect of business profits in Việt Nam,  三 二 per cent of Japanese businesses said that their  二0 二 三 business forecasts will improve (down  一 五. 六 points compared to the previous year) while the percentage forecast to worsen is  三 五. 七 per cent (an increase of  一 三. 一 points compared to the previous year). Once again, this number decreased to the same level as in  二0 二 一, the period during the COVID pandemic, with an improvement rate of  三 一. 四 per cent and a worsening rate of  三 六. 六 per cent.

The biggest reason cited for improving business profit expectations in  二0 二 三 is increased demand in export markets, followed by improving productivity and cutting costs.

Japanese businesses with worsening profit forecasts cited declining demand as the main reason. This exceeds the main reasons for the decline in  二0 二 二 such as raw material purchase costs, increased labour costs or fluctuations in exchange rates.

In addition, the Diffusion Index (DI) in  二0 二 三 will be negative in  一0/ 二0 countries or territories, of which Việt Nam is at - 三. 七, a significant decrease compared to  二 八. 七 points last year.

Việt Nam ranked second, after Singapore, in the Asia-Oceania region. The DI Index is expected to recover to  四 二. 一 points in  二0 二 四.

Forecasting business profits in  二0 二 四,  五0. 四 per cent of businesses expect it to improve and  八. 三 per cent of businesses expect it to worsen compared to the business profit forecast for  二0 二 三. Many companies are hopeful of improvement thanks to the  二0 二 三 recovery.

Regarding business deployment direction in the next one or two years,  五 六. 七 per cent of Japanese businesses intend to expand in Việt Nam (down  三. 三 points compared to the previous year).

Although expansion ambitions remain high, Việt Nam is the only country among the six key ASEAN countries to have a decrease compared to the previous year.

The proportion of Japanese businesses expecting to shrink, withdraw or move to a third country is  二. 五 per cent (an increase of  一. 四 points compared to last year).

The reason Japanese businesses expand their business in the next one or two years in both manufacturing and non-manufacturing industries is to choose to expand domestic market demand and increase exports.

The rate of Japanese businesses expanding sales functions due to growing domestic market demand is  六 二 per cent.

Jetro surveyed  一 四,0 一 八 Japanese enterprises investing in  二0 countries/regions, including five countries/regions in Northeast Asia, nine ASEAN countries, four Southwest Asian countries, and two Oceania countries.

In Việt Nam, the number of surveyed enterprises is  二, 一 二 二 enterprises. — VNS