The Daily Newspaper raises the central issue of Prime Minister Suga’s visit to Vietnam
Expanding economic cooperation is a key content in the agenda of the Japanese Prime Minister’s visit to Vietnam, this is also an area of cooperation that brings the two countries closer together.
|Vietnam is the first country that Mr. Suga Yoshihide (left) chooses to visit officially after taking office as Prime Minister of Japan in September 2020. Photo: Duc Thanh|
According to the Nikkei Asian Review, Japan and Vietnam have agreed to promote re-start business activities and boost investment during the visit to Vietnam by the new Prime Minister Suga Yoshihide. Prime Minister Suga held talks with Vietnamese Prime Minister Nguyen Xuan Phuc on October 19 and the two sides agreed to restart trade and travel activities when the two countries repelled the Covid-19 epidemic.
In July 2020, Vietnam and Japan reached an agreement to resume trading activities for expatriates and long-term residents in the two countries. On October 19, the two Prime Ministers agreed to soon resume the commercial flight route between the two countries.
The Nikkei Asian Review stated clearly, the two leaders agreed to cooperate to promote the free and open Indo-Pacific initiative; at the same time, to scrutinize China’s growing presence in the East China Sea and South China Sea.
This newspaper reviews, nAn important content of Prime Minister Suga’s Vietnam visit agenda is to ensure the expansion of economic cooperation with Vietnam. Choosing to visit Vietnam on Prime Minister Suga’s first overseas trip can promote the role of major economies in implementing the expansion of a major business cooperation plan in Vietnam in the context of Vietnam. Signed a Free Trade Agreement with the EU (EVFTA) and is finalizing a bilateral trade agreement with the UK.
Vietnam has prevented the spread of Covid-19 better than other countries in Southeast Asia and the Vietnamese economy has so far not suffered negative growth like many other economies in the region. Nikkei Asian Review guide The International Monetary Fund forecasts show that Vietnam’s real GDP in 2020 will reach a 1.6% increase, compared with an increase of more than 7% in the previous two years.
Japan is the second largest foreign investor in Vietnam, only after South Korea, in accumulated FDI in 2019. Regarding trading partners, Japan ranks fourth, after China, the US and South Korea. However, Vietnam and Japan have an advantage when joining the CPTPP Agreement and the two countries have a deeper relationship with more than 400,000 Vietnamese living and working in Japan.
Vietnam has always been an attractive destination for Japanese manufacturing corporations thanks to lower labor costs compared to other countries in the region. In fact, investment in manufacturing has always been at the forefront of Japanese FDI inflows into Vietnam in recent years.
In addition, the improved income of Vietnamese people over the years has opened up great opportunities for Japanese retail / service investors as they well grasp the needs of Vietnamese consumers, especially. is the young generation – potential customers for long-term growth in Vietnam.
Specifically, Vietnam’s per capita GDP has reached 3,000 USD and this is the reason why many Japanese retailers invest heavily in Vietnam. Among them, the fashion chain Uniqlo when this business activates its first business location in the city. HCM City in December 2019 and is expanding to other coverage areas. Or most recently, the leading Japanese pharmaceutical chain Matsumotokiyoshi Holdings has launched in the city market. Ho Chi Minh last week.
Reporting Prime Minister Suga’s visit to Vietnam, the Japan Times reported that Japan is looking for ways to diversify its supply chain to reduce risks caused by the Covid-19 pandemic, including efforts to reduce dependence. source of masks imported from China.
The Japanese government is subsidizing its businesses to move production to Southeast Asia, an area that is judged to have a favorable geographical location and cheap labor. Up to 30 Japanese businesses are receiving subsidies goverment; They operate in many fields, from producing medical protective gear, cleaning water, to making car engine parts. Significantly, half of them are planning to set up production in Vietnam.
Vietnam is the first country that Mr. Suga Yoshihide has chosen to officially visit since he took office as Prime Minister of Japan in September 2020. This is also the second time in a row that a new Japanese Prime Minister has chosen to visit Vietnam for the first time after taking office.