The BoJ statistics, quoted by Japan’s Kyodo news, showed that Japan's foreign direct investment (FDI) in Vietnam totalled JPY198.1 billion (US$1.74 billion) last year, up 70% from 2014, on the back of an increase in the number of Japanese businesses in the country and its high economic growth.
The combined number of registered firms at Japanese business associations in Hanoi and Ho Chi Minh City has increased by more than 250 since 2014 to nearly 1,500 as rising labor costs in China have prompted them to open plants in Vietnam.
According to a survey by the Japan External Trade Organisation, nearly two-thirds of Japanese businesses in the country are profitable.
In contrast, Japan's FDI income from Malaysia dropped about 24% from 2014 to JPY167.5 billion in 2016.
