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Home Industry Industrial

15 Japanese enterprises are planning to shift their supply chains to Vietnam

21/07/2020
in Industrial
15 công ty Nhật dự kiến rời Trung Quốc sang Việt Nam
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15 Japanese companies will be financially supported by the government to transfer manufacturing activities from China to Vietnam.

The Japan External Trade Organization (JETRO) has recently published a list of 30 companies (out of 100 firms participating in the “supply chain diversification” project) granted with subsidies to shift their manufacturing plans from China to ASEAN countries like Vietnam, Philippines, Malaysia, Thailand, Laos.

Impressively, an exact half of this group, including both large enterprises and SMEs, has chosen Vietnam as their desired investment destination. However, it is not clear whether they will transfer a whole or just a part of their manufacturing plants to Vietnam.

List of 15 companies subsidized to shift their supply chains from China to Vietnam. Source: JETRO

The majority of subsidized companies shifting to Vietnam are specializing in the production of medical equipment, while the remainings focus on semiconductors, mobile phone components, air conditioners, and electric modules. In this list, Hoya Group – a manufacturer of hard disk components plans to move their plants from China to Vietnam and Laos.

According to Jetro, the subsidies fluctuate from 100 million yen to 5 billion yen, complementing the necessary costs to purchase and install facilities and equipment for manufacture expansion.

Out of the 30 countries setting eyes on Southeast Asia, the Japanese government also decided to spend at least 57.5 billion yen (equivalent to 536 million USD) for another 57 enterprises, including a face mask manufacturing company for export purpose – Iris Ohyama and Sharp Group to return the supply chains to their homeland.

Japan has been known as the second economy (after Taiwan) to impose specific policies to enhance and speed up the process of diversifying the global supply chain, mitigating its over-dependence on China.

Edited by: Dandelion

Source: VnExpress
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