Japan helps 15 companies move factories to Viet Nam

Tuesday, Jul 21, 2020 08:48

Headquarters of Shin-Etsu Polymer Co., Ltd in Tokyo, Japan. — Photo shinetsu.info

Fifteen out of more than 80 Japanese enterprises received support from the government to move factories to Viet Nam.

It was reported by the Japan External Trade Organisation (Jetro).

Jetro said that this was a move to improve the gap in the Japanese supply chain since the COVID-19 pandemic had broken out and spread.

The project moving businesses to Asia also aimed to strengthen Japan-ASEAN economic and industrial co-operation.

Bloomberg said the Japanese government would start paying some companies to move factories out of China back to their home country or to Southeast Asia.

The move aims to improve supply chains and reduce dependence on manufacturing in China.

Nikkei also confirmed that the Japanese government would pay a total of 70 billion Japanese yen (US$653 million) for eighty-seven companies or groups to move production lines.

Thirty of these will receive money for investments in Southeast Asia including Viet Nam, Myanmar, Thailand and others.

The other 57 projects would head to Japan, said Nikkei. — VNS

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