25% of Japanese firms relocate to Vietnam after China exit: JETRO

[Kashmiri Pandit]

As many as 25 percent of Japanese firms have relocated their operations to Vietnam after the China exit, Yasuzumi Hirotaka, head of the Ho Chi Minh City branch of the Japan External Trade Organization (JETRO), said at a meeting in the southern city of Can Tho.

The regular event was held by the Can Tho branch of the Vietnam Chamber of Commerce and Industry (VCCI) to review investment activities Vietnam’s Mekong Delta.

Japanese investors are attracted by the cheap labor costs and the much improved infrastructure in the Southeast Asian country, Hirotaka elaborated.

Many new bridges and roads have been built in Vietnam, cutting travel times between localities, so Japanese businesses want to expand investment to other areas rather than just Ho Chi Minh City, he added.

Still, businesses from the East Asian country are still concerned as investment information remains mostly unclear, while labor costs have also begun rising, the JETRO official noted.

The weak supporting industries of Vietnam is also an issue, as a business could only domestically source 33 percent of the necessary materials for production, while having to import the remaining proportion.

Vietnam thus needs more support in terms of taxes and other incentives to improve the supporting industries.

A representative of the South Korean trade organization also told the meeting that its member businesses do not know much about the agriculture sector in Vietnam’s Mekong Delta.

Mekong Delta provinces are therefore urged to supply more information and introduce their strengths to foreign businesses to be able to attract more investors, the South Korean trade organization advised.

Besides Can Tho, which is directly administered by the central government, the Mekong Delta also includes such provinces as Long An, Tien Giang, Ben Tre, Vinh Long, Tra Vinh, Hau Giang, Soc Trang, Dong Thap, An Giang, Kien Giang, Bac Lieu and Ca Mau.

These 13 localities took advantage of the Friday meeting to inform international investors that they are calling investment for 74 projects.

Japanese businesses will boost investment to the Mekong Delta, and seafood emerges as the industry with the biggest potential, according to the Japanese trade representative.

Vietnam’s Mekong Delta attracted $2.3 billion worth of foreign investment between 2011 and 2014, according to the VCCI Can Tho.

The area posted an average economic growth of 10 percent annually from 2001 to 2010, and 8.8 percent a year in the 2011-14 period.

There are now 29,000 businesses operating in the Mekong Delta, accounting for 7.7 percent of the total number of firms across Vietnam.

Considered Vietnam’s granary, the Mekong Delta supplies more than 90 percent of the country’s rice production, and 50 percent of the seafood outputs, among many other agriculture produce, according to the VCCI Can Tho.


25% of Japanese firms relocate to Vietnam after China exit: JETRO

Nihon Jin Sama , Ur Pic is so Cute

 

[Aepsilons]

What Nihonjin is saying is not just about high tech. He is saying since 1979, the accumulated investment in China in all fields, Japan is the highest foreign investor in China.
Do you know if there are reliable stats to prove him right or wrong? I thought HK was the biggest investor in China since 1979.

As the world’s second and third largest economies, China and Japan together account for more than a fifth of global output. Moreover, the bilateral trade relationship between China and Japan is the third largest in the world, with over US$340 billion of trade in 2014. In fact, Japan is the largest investor in China, with direct investment of more than US$100 billion in 2014.


6th Annual CKGSB China-Japan CEO Roundtable | CKGSB

 

[Martian2]

What Nihonjin is saying is not just about high tech. He is saying since 1979, the accumulated investment in China in all fields, Japan is the highest foreign investor in China.
Do you know if there are reliable stats to prove him right or wrong? I thought HK was the biggest investor in China since 1979.

Nihonjin claimed $150 billion total investment in Greater China.

The following citations (including from the US government) show Taiwanese investments into mainland China of $300 billion to $400 billion. Thus, Nihonjin is clearly wrong.

U.S.-Chinese Relations: Perilous Past, Pragmatic Present - Page 232 - Google Books Result
books.google.com/books?isbn=0742568423
Robert G. Sutter - 2010 - ‎History
(For comparison, reflecting the large Taiwan investment in the Chinese mainland, ... put the actual value of Taiwan investment in China at over U.S. $300 billion.)

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‘Lost years’ showcase Taiwan’s true story - Taipei Times

 

[Aepsilons]

Nihon Jin Sama , Ur Pic is so CuteView attachment 276037

Ahahaha anatawa kawaiii desu ne!

 

[Viet]

Let them fan the hate; i think this image of Japanese militancy or Japanese imperial nature gives shock value for Chinese civilian perception of us. This entices more Chinese to come visit Japan, and encourages Chinese realtors to buy more property in Japan.

Its a unique dynamic how Chinese view Japan and Japanese. On one side they hate Japanese brutality during the war, and on another, they respect and admire our work ethic, our social harmony, and our impressive work and social culture.
There is a sense of Awe, impressiveness, admiration, respect on their part whenever they visit Japan.

LOL, you're allowed to take exception , Mike.

well said. in reality, despite all efforts of chinese government to brainwash common chinese folks, I bet 90 percent of chinese deeply admire japan and japanese people, even wanting to copy the look of japanese boys and girls. you can ignore chinese paid trolls here on PDF. I despise them

 

[faithfulguy]

Nihonjin claimed $150 billion total investment in Greater China.

The following citations (including from the US government) show Taiwanese investments into mainland China of $300 billion to $400 billion. Thus, Nihonjin is clearly wrong.

U.S.-Chinese Relations: Perilous Past, Pragmatic Present - Page 232 - Google Books Result
books.google.com/books?isbn=0742568423
Robert G. Sutter - 2010 - ‎History
(For comparison, reflecting the large Taiwan investment in the Chinese mainland, ... put the actual value of Taiwan investment in China at over U.S. $300 billion.)
h

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‘Lost years’ showcase Taiwan’s true story - Taipei Times

Maybe hk and tw investments do not count as they are also Chinese?

 

[Aepsilons]

"Japan is the largest investor in China, with a stock of direct investment at more than US$100 billion in 2014 or US$30 billion more than the next largest source, the United States. But even those massive trade and investment figures understate just how intertwined are these two Asian giants."

Reference:
The geo-economic potential of the China–Japan relationship | East Asia Forum

 

[Jlaw]

Japan is the largest investor in China, with a stock of direct investment at more than US$100 billion in 2014 or US$30 billion more than the next largest source, the United States. But even those massive trade and investment figures understate just how intertwined are these two Asian giants.


The geo-economic potential of the China–Japan relationship | East Asia Forum

I don't think your stats are right. Check this.

China now largest recipient of FDI inflows - FTSE Global Markets

"Last year, foreign firms invested $128bn (£84,8bn) in China.."

"The top 10 investors, led by Hong Kong, South Korea, Singapore, Taiwan and Japan, made up for 96.5% of mainland China's foreign direct investment.."

Nihonjin claimed $150 billion total investment in Greater China.

The following citations (including from the US government) show Taiwanese investments into mainland China of $300 billion to $400 billion. Thus, Nihonjin is clearly wrong.

U.S.-Chinese Relations: Perilous Past, Pragmatic Present - Page 232 - Google Books Result
books.google.com/books?isbn=0742568423
Robert G. Sutter - 2010 - ‎History
(For comparison, reflecting the large Taiwan investment in the Chinese mainland, ... put the actual value of Taiwan investment in China at over U.S. $300 billion.)

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‘Lost years’ showcase Taiwan’s true story - Taipei Times

You are correct. I did some digging and found that HK, SK and Taiwan are China's biggest investors.

too bad I don't have access to school database anymore for more statistics

 

[Martian2]

Maybe hk and tw investments do not count as they are also Chinese?

No. Hong Kong is merely a financial center.

The money (and technology) flowed from Taiwan through Hong Kong into mainland China.

How did you think the Chinese economic miracle happened?

Why do you think former President Hu Jintao personally visited Taiwanese companies on mainland China during Chinese New Year (or Lunar New Year)?

Taiwan was and is the key to China's accelerated economic development and climb up the technological ladder. Where did you think mainland Chinese five-axis CNC machine tools came from? They learned from Taiwan and built their own.

Taiwan is important to mainland China. Japan is not.

This is logical. Taiwan is Han Chinese and shared its technology liberally with mainland Han Chinese. In contrast, Japan would jealously guard its technology to preclude the rise of a powerful industrialized China.

Hence, no one cares if Japanese companies left mainland China. They never contributed anything of value.

The Taiwanese companies are the fulcrum that turned China into a technological powerhouse.

 

[Aepsilons]

"The top 10 investors, led by Hong Kong, South Korea, Singapore, Taiwan and Japan, made up for 96.5% of mainland China's foreign direct investment.."

And they put Japan in the last, lol. Japan should have been first in that list.

well said. in reality, despite all efforts of chinese government to brainwash common chinese folks, I bet 90 percent of chinese deeply admire japan and japanese people, even wanting to copy the look of japanese boys and girls. you can ignore chinese paid trolls here on PDF. I despise them

Sift through the bad, engage with the good ones. Its just like sifting through harvested rice, my friend.

 

[Jlaw]

And they put Japan in the last, lol. Japan should have been first in that list.

Japan was number 5, not 10. makes sense assuming the order is like ingredients on a package. If 2014, China's FDI was only $128b, it's most likely not probable Japan invested more than $100b + from your previous post.

 

[Aepsilons]

Japan was number 5, not 10. makes sense assuming the order is like ingredients on a package. If 2014, China's FDI was only $128b, it's most likely not probable Japan invested more than $100b + from your previous post.

That was referenced from the East Asia Forum as well as from the 6th CKGSB CEO roundtable summit,

6th Annual CKGSB China-Japan CEO Roundtable | CKGSB

I suppose it illustrates the dance of collaboration in the milieu of the spirit of competition.

 

[Martian2]

Taiwan vs. Japan

Who's the world's largest foundry? Taiwan Semiconductor (TSMC) with 54% worlwide market share. China's SMIC has been bidding top dollar for TSMC employees.

Who's the world's second-largest SoC (system on a chip) design company? Taiwan's MediaTek. China's Spreadtrum has been bidding top dollar for MediaTek employees.

Who's the world's largest electronics parts manufacturer? Taiwan's Delta Electronics.

Who's the world's largest smartphone lens manufacturer? Taiwan's Largan.

Who's the world's largest computer chip assembly company? Taiwan's ASE.

As you can see, the Japanese are nobodies in semiconductors and electronics. In contrast, Taiwan is making billions of dollars in profit.

In conclusion, the Japanese will not be missed. The Japanese companies are second-rate and have lousy technologies. Japan cannot contribute to China's economic development.

 

[Aepsilons]

Of course we do, we are the largest investor in China, to date.

Nothing you or anyone here can say will change that reality. LOL.

Hating Japan does not change that reality; why even during the height of the Senkaku Shotto issue, we still were the top investor in your country. Come on, my Zhonguoren friends. Let's drink Sake to more cooperation okay? Albeit more so on the high tech and services sectors now.

6th Annual CKGSB China-Japan CEO Roundtable | CKGSB

 

[Martian2]

Most of the "Hong Kong" FDI into China is actually Taiwanese investment via shell companies. This is necessary to circumvent Taiwanese government supervision and/or restriction of Taiwanese investment in mainland China.
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Top 10 countries investing (FDI) in China