Nine of the companies are small and medium enterprises (SMEs) and six of large scale.
The Japan External Trade Organization (JETRO) has 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, with half of the list eyeing Vietnam as a possible destination, local media reported.
15 Japanese firms to leave China for Vietnam. Source: JETRO. |
According to the list, nine of them would be small and medium enterprises (SMEs) and six of large scale. However, it is unclear that they would move partly or the whole production chain out of China.
Additionally, six others would move to Thailand, four to Malaysia, three to the Philippines, among others.
The majority of Japanese firms looking to move to Vietnam are in the fields of medical equipment, in addition to those producing semiconductors, phones and parts, and air conditioners, among others.
Among the list, Hoya Corporation, which manufactures hard-drive parts, is set to move to Vietnam and Laos, while Shin-Etsu Chemical will shift production of rare-earth magnets to Vietnam.
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.
Besides, Nikkei reported the Japanese government also subsidizes other 57 companies in China to head back to Japan with around US$536 million, including household goods maker Iris Ohyama, hygiene products maker Saraya, and producers of aviation parts, auto parts, fertilizer, medicine and paper products, with the roster incorporating such bignames as Sharp, Shionogi, Terumo and Kaneka.
The Japanese government earlier this year earmarked around US$2 billion in the fiscal year 2020 supplementary budget to create a subsidy program to encourage companies to move plants to Japan. Of that amount, US$219 million was set aside to promote the diversification of production sites from China to Southeast Asia.
Other News
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses
- Vietnam calls for more US investment in innovation, hi-tech
- Vietnamese leader urges Boeing to build production facility in Vietnam
- Foreign capital pouring into Vietnam's real estate market
- Vietnam news in brief - August 24
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
Trending
-
Vietnam's updated NAP: Progress in climate action
-
Vietnam news in brief - November 20
-
Prime Minister meets world leaders at G20
-
Hang Ma Street gears up for festive season
-
A Hanoi artisan turns straw into appealing tourism product
-
“Look! It’s Amadeus Vu Tan Dan” workshop - an artistic journey for kids
-
Vietnam news in brief - November 15
-
Experiencing ingenious spaces at the Hanoi Creative Design Festival 2024
-
Hanoi Festival of Creative Design 2024: celebrating the capital's cultural innovation