HCMC – Over 43% of Japanese firms have expressed their intention to expand their local procurement rates, particularly focusing on food, precision equipment, medical equipment, and transportation sector equipment.

Last year, Japanese businesses in Vietnam achieved a procurement rate of 41.9%, 4.6 percentage points higher than in the previous year. Looking ahead, 43.2% of Japanese companies plan to further increase their localization rates in Vietnam, a figure notably higher than the ASEAN average of 28.8%. Information from the Japan External Trade Organization (JETRO), HCMC Office, indicates that 56.7% of Japanese companies in Vietnam are interested in expanding their businesses within the next one to two years, with the industrial manufacturing sector representing 47.1% of this interest. As of June 2024, Japan had invested US$1.225 million in projects in Vietnam, a 2.1-fold increase from last year, making it Vietnam’s third-largest investor by value. JETRO also noted that sectors where Japanese firms are keen to increase local procurement rates include food, precision manufacturing equipment, medical equipment, and transportation sector equipment.