Japan’s largest shipping company will invest $1.2 billion towards a container port expansion in Vietnam. This investment is the latest sign of the shift of global manufacturing from China to Southeast Asia.

Financial Times reported last Tuesday that Mitsui OSK Lines has been investing in members of the Association of Southeast Asian Nations (ASEAN) for the past three years. In the past few years, labor costs in China have increased and disputes between China and Japan have affected Japanese companies.

Japanese companies have invested over $20 billion into ASEAN member nations. For three years, Japan has invested more in ASEAN nations than in China and Hong Kong.

In an annual survey conducted by Japan External Trade Organization (JETRO), the company found that for the first time since 1998, less than 40% of Japanese companies intend to expand holdings in China. Vietnam is now the preferred destination for Japanese companies.

Rajiv Biswas, Asia Pacific Chief Economist at IHS Global Insight, said that Mitsui’s move reflects a broad global rethink on investment plans. According to forecasts, by 2025, the combined GDP of ASEAN nations will rise from $2.6 trillion to $5.8 trillion.

“Rising labor costs in China are really changing Japanese corporate perceptions of the role of ASEAN in their global supply chain. I would particularly highlight Vietnam as the emerging hub of electronics. It is completely changing Vietnam’s macroeconomic prospects,” Biswas told the Financial Times.

Source: inews.qq.com

Warning：The use of any news and articles published on eChinacities.com without written permission from eChinacities.com constitutes copyright infringement, and legal action can be taken.

Keywords: Financial Times Japan Mitsui OSK