Japanese companies are relocating their production bases from Thailand to Viet Nam to take advantage of lower operating costs in the country, the Japan External Trade Organisation (JETRO) said.
"Three years ago, Japan ’s investment in Viet Nam was 1.6 billion baht (close to 52.6 million USD). But the figure is up to 3.9 billion baht this year," President of JETRO's Bangkok office Yoichi Kato was quoted by The Nation newspaper as saying.
Some key industries including electronics and automobiles have pointed out that production costs in Viet Nam are now much cheaper than in Thailand . The economy there has also been vibrant for years due to strong domestic demand.
The United Nations has noted that Viet Nam is becoming one of the world's best countries for investment along with China , Russia , Brazil , India and the US .
Japanese companies are primarily concerned about political stability when making an investment decision, so they see Viet Nam as a good place to go, Kato said.