In recent years, the inflow of investment from Japanese small and medium sized enterprises has been on the rise especially after Prime Minister Nguyen Tan Dung’s visit to Japan and his Japanese counterpart Shinzo Abe’s visit to Vietnam in 2006.

Director of Al Electronics Company in Japan’s Tochgi province Takahashi Norimichi said when he stopped over in Vietnam 8 years ago, the country’s infrastructure facilities were still very poor but he learnt about its great potential for development. He said he had been strongly impressed by Vietnamese people’s industriousness and skillfulness at a number of local factories. In Vietnam, labour costs are cheap but the Vietnamese Government should adopt more incentive policies towards foreign investors, he noted.