Posted on 13 December 2007

 

Source: BVOM, December 13, 2007
Japanese companies are moving their production bases from Thailand to Vietnam to take advantage of lower operating costs in the country, the Japan External Trade Organisation (JETRO) said.

"Three years ago, Japan ’s investment in Vietnam was 1.6 billion baht (close to 52.6 million USD). But the figure has increased to 3.9 billion baht this year," President of JETRO's Bangkok office Yoichi Kato was quoted by The Nation newspaper as saying.

Compared to Thailand, production costs in Vietnam are now much cheaper, which have attracted Japanese businesses to invest in some key industries such as electronics and automobiles.

The political stability is always the initial condition for Japanese companies to make any investment decision, and Vietnam is considered a good environment for them, he added.

 

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