Japanese investors promote strategic cooperation deals in Vietnam
Japanese investors continue to place their hopes on the Vietnamese market by promoting strategic cooperation deals and new investments.
In mid-August 2024, Mitsui & Co., Ltd. (Mitsui) and Tasco announced the completion of an agreement for Mitsui to become a strategic shareholder of Tasco Auto - a member unit of Tasco and accompany Tasco Auto in implementing many development plans and strategies in the coming time. The investment was disbursed in installments and the first installment was completed on July 31, 2024.
In early August 2024, Marubeni Corporation, through its subsidiary Marubeni Growth Capital Asia Pte. Ltd. (MGCA), acquired additional shares of AIG Asia Materials Corporation (AIG). This is the next step after MGCA's purchase of a minority stake in AIG announced in November 2023.
AEON Entertainment, a subsidiary of Japan's AEON Group, has established a joint venture with Beta Media to invest in 50 new cinema complexes by 2035, with an investment cost of several tens of billion yen (equivalent to 200 million USD). AEON Entertainment's expansion plan is also in line with AEON's strategy of identifying Vietnam as the second key market alongside Japan to boost its investment.
Similarly, Sojitz has developed a diversified business ranging from retail, wholesale and distribution to food processing in Vietnam. Sojitz also plans to invest in digital transformation to improve supply chain efficiency and create new businesses in Vietnam. To this end, Sojitz invested in Vietnamese fintech company Finviet in April 2024 after acquiring full ownership of Dai Tan Viet Joint Stock Company.
Mr. Masataka “Sam” Yoshida, Global Director of Cross-border M&A Services at RECOF Corporation, shared that in many cases, strategic goals such as gaining a dominant position in the Vietnamese market cannot be achieved through just one deal. After making initial investments, Japanese companies start looking for further opportunities such as distribution channels after investing in manufacturing, maintenance services after investing in sales, or the northern market after entering the southern market.
“We have seen a continuous flow of investment from Japanese strategic investors to acquire Vietnamese companies that have established a strong position in areas such as retail, wholesale distribution and packaging,” said Mr. Yoshida.
According to Mr. Yoshida, Japanese companies are becoming more active in areas such as manufacturing, logistics and distribution. Many Japanese corporations have begun to prioritize Vietnam as a regional supply hub, instead of China or Thailand. Some companies are also making efforts to penetrate or expand into the Vietnamese market amid increasing global competition.
A survey released by the Japan External Trade Organization (Jetro) in May 2024 showed that Vietnam recorded the second highest rate of Japanese enterprises (24.9%) planning to expand their business operations abroad, after the United States. Regarding large corporations planning to expand abroad, Vietnam ranked second (28.6%), after India (29.5%). About 24.1% of Japanese small and medium-sized enterprises plan to expand to Vietnam.
Mr. Matsumoto Nobuyuki, Chief Representative of Jetro in Ho Chi Minh City, shared that while China topped the Jetro survey in 2020 in terms of the percentage of Japanese companies planning to expand their business, Covid-19 is an opportunity for companies to realize the need to diversify their supply chains, instead of relying too much on China. After considering markets in ASEAN, many companies have chosen Vietnam, making it the second most popular destination after the United States since the 2021 survey.
In the first eight months of the year, Japanese investors poured US$2.5 billion into Vietnam, up 90.4% year-on-year. New investments were mostly in LNG power plant projects, demonstrating Japanese investors’ strong interest in the infrastructure sector. Expansion investments also grew, demonstrating Japanese investors’ growing demand for expansion.
Source: https://baodautu.vn/nha-dau-tu-nhat-ban-day-manh-cac-thuong-vu-hop-tac-chien-luoc-tai-viet-nam-d224973.html
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