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 * JAPAN: TOKYO
   
   Vietnam: Hanoi & Ho Chi Minh

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“GROWTH” OF VIETNAM’S ECONOMIC SCALE APPROACHING THAT OF JAPAN


15 Apr

By: B&Company Vietnam

Industry Reviews / News, Press Release

Comments: No Comments.

In 2010, Vietnam’s GDP was one-38th of Japan’s. By 2020, it was about 14 times
higher, and by 2022, it will be closer to 12 times higher. This time, we decided
to compare this in terms of “growth”. This is because “how new demand will be
created” is often more important when companies consider their future
activities.

Looking at real GDP, Vietnam has shown steady growth between 2010 and 2022, with
annual fluctuations, while Japan’s growth has been more uneven. In addition to
Corona, Japan was negative in U.S. dollar terms three times, including in 2020
when the yen weakened. As a result, over the 12-year period, Japan’s growth was
about 499 billion USD while Vietnam’s was about 296 billion USD, about 60% of
Japan’s, or the same order of magnitude in terms of “growth”. About 23% of this
GDP “growth” came from FDI firms. Although foreign investment by enterprises is
not aimed at adding value, it does represent a certain level of results in terms
of the transfer of business activities.

Now, the number of Japanese companies that have already entered the market is
about 2,900, or about one in every 1,000 Japanese companies. Comparing their
sales to those of domestic companies, the average is about five times higher.
Although there are difficulties and risks involved in expanding, and competition
with companies from other countries is often fierce, in many cases the fruits
can be seen as greater than if they had remained in Japan.

Similar “growth” comparisons can be made for national income and retail sales.
Here we show the results for national income. Japan’s “growth” was still
relatively large, about three times that of Vietnam.

Next is the unit of local government. Since Tokyo is too large, we compared
other prefectures and Vietnam’s two largest cities. Among several confirmed
examples are Fukuoka and Miyagi prefectures, which represent Kyushu and Tohoku,
respectively. The size of the growth potential of the economic zone including
Hanoi and Ho Chi Minh City and their surroundings was confirmed. In Japan,
Miyagi Prefecture had the momentum, but the “growth” of each province and city
in Vietnam was greater. (Yearly breakdowns are abbreviated in the following
graphs.)



Finally, let’s look at industry. Of course, this is only a guide, as the lines
of classification are not the same from country to country.

Agriculture is also likely to reverse, not in “growth” but in overall value, as
Japan is not growing. The manufacturing and distribution sectors are also not
many times larger than Japan’s, but are in the same order of magnitude. Vietnam
is no longer too “small” for Japanese companies except for the very large ones

Vietnam’s GDP – B&Company 

This article has been published in the column “Read Vietnamese trends” of ASEAN
Economic News. Please see below for more information

FNX_Economic Growth_EN_2404
ASEAN Economic News「よむベトナムトレンド」
 
 

B&Company, Inc.

The first Japanese company specializing in market research in Vietnam. The
company’s website publishes the results of industry and consumer surveys in
Vietnam. https://www.b-company.jp

Please do not hesitate to contact us if you have any queries. info@b-company.jp
+ (84) 28 3910 3913

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 * A speech about assessment of Japanese ODA to Vietnam and challenges
 * Health Supplement Products in Vietnam in Recent Years
 * Declining presence of Japanese companies in Vietnam
 * Out Of Office (Liberation and International Worker Day 2024)
 * The growth of the logistics industry in Vietnam

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