According to a recent survey conducted by the Nikkei Asian Review, 70% of Japanese businesses want to diversify their supply chains to minimize risks from their dependence on China.

The survey was conducted with leaders of major companies in Japan from May 25 to May 28, after the country lifted its blockade orders. Among companies with factories in Japan, 72.1% said it was necessary to change the supply chain.

Of which, 65.3% would like to switch supply more flexibly in the event of a crisis like the Covid-19 epidemic. About 57.1% said they would stop buying raw materials from a single country to diversify their supplies. The pandemic is also changing the way people work, with 90.9% of companies planning to continue working measures to comply with social spacing rules. Specifically, 63.2% of executives surveyed said half or most of their workers would work from home and intended to work flexible hours to reduce the density of employees at work.

In March, Japanese Prime Minister Shinzo Abe called on Chinese businesses to relocate production lines of high-value industries from China to Japan. With the remaining products, Japan will allocate supply to the countries in Southeast Asia.

Japanese companies have planned to move away from China and the destination could be India. Not only does India boast highly skilled workforce, impressive business talent, a large internal consumer market and well-developed private businesses, but also the analytical, financial, technical, Its management is also world class.

In addition, ASEAN countries are also new destinations for Japanese investors. Japan's US $ 2.2 billion economic support package helps finance local businesses to bring manufacturing activities from China back to Japan or transfer to Southeast Asian countries. Malaysia benefited from this new trend in 2019. Between January and September 2019, this ASEAN member state saw more than $ 8.9 billion of FDI, according to the Malaysian Investment Development Agency. (MIDA).

(From http://iipvietnam.com/)