MSBC and the Ministry of Planning and Investment's Foreign Investment Agency (FIA) signed a memorandum of understanding to this effect in Ha Noi yesterday. — Photo cand.com.vn

HA NOI (Biz Hub) — Japan's Sumitomo Mitsui Banking Corp. (MSBC) is set to help more of its client companies establish business operations in Viet Nam, as they eye investment destinations beyond China.

MSBC and the Ministry of Planning and Investment's Foreign Investment Agency (FIA) signed a memorandum of understanding to this effect in Ha Noi yesterday.

The tie-up allows MSBC and FIA to improve investment performance and facilitation in Viet Nam, making it easier for Vietnamese and Japanese firms to reach business deals, head of FIA Do Nhat Hoang said at the signing ceremony.

In recent years, Japanese manufacturers and processors have considered Viet Nam a focus of their "China+1" strategy, in which they seek to reduce over-reliance on China, according to general director of MSBC's Ha Noi branch Noriyuki Watanabe.

Japanese retail companies also see great opportunities in the country, which has the third-largest population in ASEAN. As of October 20, Viet Nam drew over $36.5 billion worth of Japanese investment in 2,434 projects, making Japan the biggest foreign investor in the country. In the first ten months of this year, Japanese enterprises reported $1.66 billion in newly-registered and additional capital.

Around 1,000 Japanese firms operating in Viet Nam are MSBC clients. — VNS