Fifteen Japanese companies are expected to relocate from China to Vietnam.

The Japan Trade Promotion Organization (Jetro) has just announced a list of 30 Japanese companies (out of more than 100 companies that registered for the supply chain diversification project) that will receive subsidies to move their production operations from China to Southeast Asian countries such as Vietnam, the Philippines, Malaysia, Thailand, and Laos.

Half of this list consists of companies registering to relocate to Vietnam, including large, small, and medium-sized enterprises (SMEs). It is unclear whether this relocation involves part or all of their manufacturing operations in China.

The majority of companies receiving subsidies to relocate to Vietnam are in the medical equipment manufacturing sector. In addition, there are some businesses involved in semiconductor manufacturing, phone components, air conditioners, and electrical modules… Among these, Hoya Group, a hard drive component manufacturer, plans to relocate its production operations from China to Vietnam and Laos.

According to Jetro's announcement, the subsidy ranges from 100 million to 5 billion yen, partially offsetting the costs necessary for purchasing and installing machinery and equipment for production expansion.

In addition to the 30 companies that received subsidies to move their manufacturing operations from China to Southeast Asia, the Japanese government also spent at least 57.5 billion yen (US$536 million) on 57 companies, including the privately owned mask manufacturer Iris Ohyama and Sharp Corporation, to relocate their production back to Japan.

This is part of a policy within Japan's global supply chain diversification project announced in April. Japan is the second economy (after Taiwan) to have a specific policy to promote the diversification of global supply chains and reduce economic dependence on China.

Last year, the Taiwanese government also provided businesses with support in terms of land, water, electricity, capital, and taxes to encourage them to move their production operations back to Taiwan.

(Source: VnExpress.net)