The Japan Trade Promotion Organization in Vietnam today revealed that 54.3 percent of nearly 900 Japanese businesses operating in Vietnam enjoyed substantial profits in 2023.

Furthermore, this organization disclosed that businesses not only earned good profits in 2023, but 50.4 percent of respondents believed that their revenue would keep improving in 2024.

Businesses pointed out improvement in profit in the next year thanks to the increase in demand for orders from the manufacturing industry in the export market, plus the increase in orders from the non-manufacturing industry from the domestic market.

In addition, enterprises keep enjoying higher profits because they continue to improve productivity and cut unnecessary costs which are also expected to bring more positive effects to the enterprise’s production and business activities.

However, businesses are also concerned about a decrease in domestic and foreign demand and an increase in labor costs and raw material purchases - two factors that will have a negative impact on enterprises’ production efficiency in the near future. Therefore, more than 56.7 percent of Japanese businesses announced that they would expand their scale of operations in Vietnam.

SGGP News