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At the press conference on July 23, Mr. Takeo Nakajima, Chief Representative of Japan Trade Promotion Organization (Jetro) Hanoi, confirmed that 15 out of 30 enterprises were supported with funding in diversified supply chain projects. to ASEAN, choose Vietnam as the destination.

"Vietnam is very concerned. When this figure is published, it certainly shocked neighboring countries," he said.

A representative of Jetro said that Japanese businesses will diversify their supply chains but that does not mean completely moving factories from one country to another.

Mr. Takeo Nakajima said that a number of companies producing masks, medical equipment and protective clothing chose Vietnam as a destination because Vietnam has many capable and reputable businesses in the field of textiles and garments. However, this is only part of the wave, he judged.

A distinct advantage that no other country in the region can compare, according to a representative of Jetro Hanoi, is that Vietnam has a large pool of Japanese-speaking workers. That's part of the reason Japanese businesses are ready to enter Vietnam, he said.

He also assessed that the enthusiasm of the Vietnamese Government in attracting investment from Japan is the key to making such shortcomings as inconsistent, non-transparent, and corrupt (possible in any country). other) become no longer too ominous.

Compared with other ASEAN countries such as Malaysia, Singapore, Thailand, Vietnam has the advantage of low cost. However, labor costs and rent are increasing year by year so Vietnam will soon lose its advantage of cheap prices, so it needs to give it other advantages, Takeo Nakajima said.

Besides the attractive points, he said that Vietnam needs to soon raise the localization rate and supporting industry in the context that the FDI race in Southeast Asia is very exciting. Vietnam has a population of 100 million but Japan is also concerned about the shortage of human resources.

In addition, limited travel between the two countries is also considered a barrier. Commercial flights because Covid-19 has not been re-established will affect the investment process, especially when many of the 15 businesses that chose Vietnam as their destinations have embarked on a plan to diversify their supply chains, he said.

In Southeast Asia, the competition to attract FDI is very fierce. "It is also a challenge because other countries will constantly strive to improve the business environment, not lose to Vietnam," he shared.

When China - the world's factory closed due to the Covid-19 pandemic, Japan and many other countries were aware of weaknesses when the supply chain depends on a country. Therefore, Mr. Takeo Nakajima said that, after the crisis of masks, handwashing water and protective equipment, the Government of Japan for the first time has a program to encourage enterprises to diversify their supply chains in order to reduce their economically into one country.

30 newly announced enterprises are in the program of supporting production movement to ASEAN countries, launched by Japan's Ministry of Economy, Trade and Industry (METI). The maximum level that these enterprises can be supported is 5 billion yen (over 1,000 billion VND). Businesses in the health sector are in the priority group of METI.

Accordingly, businesses must complete the construction of the factory and be censored before March 2025, with the field of manufacturing medical equipment by March 2023.


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