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Japanese companies will focus from manufacturing to service industry

Vietnam was chosen as one of the Japanese enterprise strategic investment destination.However, Japanese companies have already been will focus shifted from manufacturing to service industry.
In 2016,in Vietnam, a total of 549 investment projects of Japan, including retail and hotel catering industry more than 2015 has doubled the number of investment projects.
according to Japan external trade organisation based in ho chi minh city chief representative Takimoto Koji said, Vietnam continue be Japanese companies as one of the important investment destination in Asia, the Japanese companies spoke highly of Vietnam's political and social stability. Japan increase investment in Vietnam the consumer goods and services because companies increasing and Vietnam market's revenues is growing fast, greater development potential.
Specific for Aeon shopping center, Family mart, mini island convenience store (Ministop),Takashimaya department store and is about to open a shop, such as series of 7-eleven Japanese supermarkets, chain stores, restaurants have sprung up in Vietnam was set up.In addition to the development of distribution system, Japanese companies are beginning to pay attention to production to meet the consumer goods of Vietnam's domestic consumer demand.
Japanese market research experts Teramoto Ryohei believes that developing service industry is developing countries such as Vietnam farming, forestry, fishery and reached the basic level of development of industry. Vietnam to steady and rapid economic development and the advantages of the rich young workers is becoming a hot consumer market for many foreign investors.
With the rapid growth of the consumer goods production and services, investment, corporate Japan carried out in the relevant manufacturing fell sharply in the number of projects (in a new batch of a proportion of the total number of investment projects from 30% to 20%).
Japanese companies explained that industry's labor, raw materials and spare parts cost accounting for 80% of the total production cost, Vietnam increasing the minimum wage increase the pressure to investment enterprises.
In addition, the raw materials and spare parts of Vietnam mainland supply capacity at present can only meet the demand of Japan's manufacturing industry enterprise of 20-30%, reducing the cost of raw materials of competitive advantage.
Mr.Teramoto Ryohei argues to attract investment capital into service industry is not manufacturing the main reason of the decrease in the number of investment projects, because services appeal mainly to small and medium enterprises investment, and manufacturing of large group and the investor is usually the advantage.
Japan's economy in recent years, slow growth in the country, has more cautious when choosing investment projects. On the other hand, infrastructure labor partners and technical conditions for Japanese companies also make a decision have a huge impact.
Investors believe that in order to attract investors to participate in service and manufacturing industry at the same time investment, Vietnam as soon as possible to improve the technical level and the level of business workers. Japanese expert advice, should send some outstanding workers to Japan to receive training. They will return home after learning to share the knowledge and skills to other workers.
Mr Takimoto Koji argues, Vietnam should focus on supporting industry, improve the ability of raw materials and spare parts supply, to build the competitive advantage of production cost.At the same time helping small and medium-sized enterprise development, for small and medium-sized enterprises to promote the development of manufacturing industry provided strong impetus.

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