The Thai newspaper the Nation has quoted Yoshida Sakae, Managing Director of JETRO, as saying that about 1,000 Japanese companies are currently operating in Vietnam, compared with the 7,000-8,000 Japanese companies that do business in Thailand.

Vietnam’s investment advantages include low labour costs and a rapidly growing consumer market, much larger than Thailand’s, said the paper.

If it expects the Vietnamese economy to grow by 6.5 percent or higher, JETRO should play a pivotal role in assisting Japanese investors to access business opportunities in the country.

JETRO plans to attend the METALEX fair in Ho Chi Minh City in early October as the event will be an excellent opportunity for Japanese investors to expand their operations in Vietnam.

Japan is now the largest investor in Vietnam, which is expecting to attract new foreign direct investments and additional capital totalling US$22-25 billion this year, a dramatic surge from the US$16 billion last year.

Car tyre manufacturer Bridgestone and cosmetics producer Shiseido have built their plants in Vietnam. Shiseido chose Vietnam as a production base to provide most of its cosmetics for the ASEAN market after the ASEAN Free Trade Area agreement came into effect in early 2010.