Half of Japan firms planning to diversify supply chains pick Vietnam: Abe Shinzo

Half of Japanese enterprises that are set to receive subsidies from its government to diversify supply chains have chosen Vietnam, according to Japan’s Prime Minister Abe Shinzo.

Prime Minister Nguyen Xuan Phuc in a phone talk with his Japanese counterpart Abe Shinzo welcomes Japan's decision to ease travel restriction with Vietnam. Photo: VGP

The Japanese government would continue to support its companies in diversifying supply chains, Abe said in a phone talk with his Vietnamese counterpart Nguyen Xuan Phuc on August 4.

Abe expressed his impression of the Vietnamese government’s efforts to contain the Covid-19 pandemic, and thanked Vietnam for providing Japan with face masks and medical equipment.

Meanwhile, Japan is willing to offer financial support for Vietnam to recover the economy from the Covid-19 pandemic, stated Abe.

During the phone talk, Prime Minister Phuc thanked the Japanese government for supporting hundreds of thousands of Vietnamese people living in Japan who are severely affected by the pandemic.

Phuc welcomed Japan’s decision to select Vietnam among a handful countries in easing travel restrictions, adding the two countries should continue to discuss the resumption of commercial flights in the coming time.

Abe highlighted Vietnam’s efforts to create favorable conditions for Japanese diplomats, investors, experts and businesspeople to come back to Vietnam. The move is essential to boost economic cooperation between the two countries at the time of crisis.

PM Phuc said Vietnam is committed to supporting Japanese enterprises doing business in the country, and asked his counterpart to continue encouraging Japanese firms to move to the Southeast Asian country.

In the coming time, PM Phuc plans to hold a dialogue with Japanese investors.

Additionally, the two prime ministers agreed to closely cooperate in implementing the Vietnam – Japan University project and push for greater cooperation in trade and investment, including the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Phuc and Abe expected to continue bilateral cooperation within the Japan – Mekong cooperation. Two countries also shared the same view in ensuring security and freedom of maritime and air navigation in the South China Sea, in compliance with international law, including the United Nations Convention on the Law of the Sea (UNCLOS) 1982.

Abe highly regarded Vietnam’s efforts as the chair of ASEAN 2020 and is looking forward to visiting Vietnam to attend the ASEAN summit later this year. 

The Japan External Trade Organization (JETRO) previously released a list of 30 Japanese firms that are poised to receive subsidies from its government to move production facilities from China to Southeast Asian countries, of them 15 eye Vietnam as a favorite destination.

JETRO said the financial support would range from US$900,000 – US$46.5 million to partly cover the required expenses of Japanese firms in expanding operation.

Japanese firms are required to complete the construction of facilities before March 2025, and those producing medical equipment, before March 2023.