How to treat the prime market Vietnam

As of September 2022, Japanese direct investment in Vietnam has been halved.

　In the past, Japan ranked first in terms of FDI in Vietnam, followed by Korea.

Korea has been in the lead for several years.

On the other hand, the Ministry of Internal Affairs and Communications (MIC) has announced that Japan's FDI economic ripple effect in Vietnam has been disappointing compared to that of other countries for many years.

　In September 2022, FDI from Denmark, Singapore, China, Taiwan, and South Korea into Vietnam is steady and integrated, and almost all of them are real estate investments such as functional relocation or expansion of their factories.

Japan, which was in fourth place in January, has dropped to fifth place.

(Reference January 2022　Vietnam Government News)

With the prospect of a prolonged period of global instability and a historically weak yen, major Japanese companies are increasingly on the defensive.

In Japan, most small- and medium-sized enterprises (SMEs) are engaged in outsourced contracting work, where the roles are divided among them.

Core companies called SIers exist in every industry.

This is a symbol of the rationality of the Japanese economy, where large companies are contracted to produce and develop products on a lump-sum basis, creating a supply of scale that can be passed on to market prices.

In Japan, prices of all products cannot be lowered, and if many small and medium-sized companies become prime contractors, the fragmentation of stakeholders will cause price fluctuations and create a supply chain that is more unstable than the current one. In the past 20 years, SMEs and producers have been trying to be creative.

　The so-called "direct production from the place of production," in which producers and companies that directly purchase products deliver their products to consumers.

In parallel with the spread of Internet infrastructure, Internet stores were born, and cross-border fever was also born from e-commerce malls and in-house e-commerce.。

(Reference: Ministry of Economy, Trade and Industry, July 2021)

On the other hand, modern systems, machines, and nowadays, combined development and IoT, especially those with market and utility-oriented functions, are not readily available except in large companies.

In fact, when the author introduced an efficient production method in Vietnam, he was surprised to find that simple ancillary tools cost tens of millions of yen and that the Japanese price setting was not in line with small-scale production by introducing a management system.

At the time, I wondered who would buy them and thought it would be faster to make them, but at the same time, I had no time to actually assemble a team, even though I had the idea.

Background to the ridicule of the creation of what has become a hollowed-out or deviant economy.

（Reference Mitsuru Iwamura : Professor Emeritus, Waseda University Misguided ESG debate widens inequality and undermines growth Japanese companies are wrong to demand greater shareholder sovereignty）

There is a gap between the development of various innovative technologies around the world and the current state of Japan's small and medium-sized enterprises, regional cities, and primary industries, which are relatively less attractive and important for investment.

Search engines, OFFICETOOL and their associated accessories in Admin's initial equipment, VBA,BI,R, and pop-up processing tools such as CANVA and SHOTCUT, design software such as AUTO CAD, FUSION360, UNITY, BLENDER, and Illustrator, cloud-based human resources platforms such as UPWORK that can utilize human resources from all over the world in any field. platforms, especially in Europe and the U.S., groundbreaking share economy platforms, business management tools such as SLACKS and BACKLOG, and comprehensive production management systems such as SAP.

New languages such as Python and its libraries, extremely low API and open source disclosure rates.

And now, even if I just think of LowCode, Digital Twin Platform, etc., I have not seen many Japanese-affiliated small- and medium-sized enterprises using these tools.

In our home country of Vietnam, a developing country, there are COCCOCs developed in their own country, and they occupy the TOP 10 share of the global user market.

It is a ridiculous story that they discussed all the nuances of the detailed specifications in Vietnamese.

In order to communicate detailed nuances, they disregarded labor productivity, communicated outside of fieldwork, and properly analyzed each other's personalities, and as a result, they were able to play a highly productive role.

One startup support incubator director (now a member of the investment bureau) pointed out the same thing.

I once asked him why he was working with Israeli technology. I remember that he said that they have good communication chemistry.

He said that by having conversation after conversation and analyzing the other party, synergy can be created in the work.

The reason why Japanese SMEs are losing in Vietnam is that they are not sure if trust is effective in any task, and they should not forget that the other party has the right to verify their abilities as well.

For more than 20 years now, some of Japan's most prominent figures have been calling for a change, and many of them are aware that it is too late to wait.

It is easy to assume that there are many global companies, key industries, and assets in Japan.

There are two major types of hollowing out in Japan other than the practice of moving production and development out of the country.

1， Cases in which pricing is not based on a median price but is utilized only by interested companies

2，Box-buying by investment and MA

Of course, there are many wonderful companies that are doing well at the forefront of the industry, such as cars, game consoles, animation, food, crafts, arts, etc.

Crowdfunding activities have also been observed in which foreign technology is promoted as if it were Japanese technology.

The exposure of many great technologies buried in Japan has dried up, and many talented people have left the country.

Japan is already on the verge of a new stage.

Combined with the declining population, the aging of the population means that even if the infrastructure were to last 100 years, it would not be enough to repair the aging infrastructure.

It has been 20 years since the Japanese government began promoting the automation of robots. Finally, the government has set up a development subsidy system.

https://www.meti.go.jp/information/publicoffer/kobo/2022/k220418006.html

Have you ever heard what Vietnamese business executives really think about the content of tours organized by Japanese politicians, local governments, or economic organizations?

We, as supporters in Vietnam, are required to make fact-based market judgments and provide proven support to companies that want to solve Japan's problems, rather than providing support for token tours financed by Japan's huge budgets.