A Japanese economist who advises the Vietnamese Ministry of Planning and Investment has said Vietnam should take advantage of the current economic and political situation to boost exports to Japan and attract Japanese investment.
With the yen’s relentless rise taking it to a 15-year high against the dollar last month, Vietnam’s exports to Japan are cheaper while Japanese investors are doing business more aggressively overseas, Kyoshiro Ichikawa told Tuoi Tre in an exclusive interview.
The recent territorial tension between China and Japan will surely make Japanese investors think twice about pouring more money in China and they are likely to partially or wholly relocate their investments and production facilities to Vietnam, he said.
The yen is likely to rise further in the short term since US economic recovery is slower than expected, he said.
But he allayed the fears that the appreciating yen will mean Vietnam’s official development assistance debt to Japan will rise since the appreciation is a short-term phenomenon.
Japan ODA commitments to Vietnam are worth over 1.394 trillion yen.
It used to be the equivalent of $14 billion but has risen to nearly $16.3 billion. In terms of the depreciating dong, it has risen from VND251 trillion to VND304.5 trillion.
Projects funded by ODA loans and yen-denominated commercial loans will be affected adversely by the currency appreciation, the ministry had said earlier.
Japan is one of Vietnam’s largest trading partners.
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