Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

Deployment of Japanese Companies to Asian Countries: A case of Vietnam
Atsuto Nishio
Takushoku University
anishio@ner.takushoku-u.ac.jp:
ABSTRACT
After the World War II, factories of Japanese
companies have done overseas expansion positively.
The reasons for the expansion were low personnel
expenses, the ease of raw-material supply, and a
large market etc. The factory has especially been
positively relocated their plants to the countries in
Asian countries; Northeast Asia, ASEAN and
Southwest Asia.
In Japan, the parts plants of automobile industry and
home electronics industry located in the Tohoku
district not only were suffered damage by the
earthquake and Tonami which were generated in the
Tohoku district in March, 2011, but received
restrictions on operating time by the subsequent
planned blackout. The automobile industry and
home electronics industry moved their factories to
the western part of Japan for reservation of
operating ratio. The factories were moved to the
Kyushu district (southwest of Japan). It is risk
management of companies. Kyushu is close to
Southeast Asian countries and suitable for sea
transportation. The big earthquake occurred in
Kumamoto and Oita in Kyushu in April, 2016.
These two big earthquakes accelerated the
company's factory relocation to Southeast Asian
countries.
In recent years, development to Vietnam and
Myanmar is active. Vietnam faces the South China
Sea (Biển Đông) and also borders on China, a big
market. Moreover, China is adjoined and the large
market is cut down. Maintenance of an
infrastructure is active and people’s purchasing
power is also upward in Vietnam. Early
advancement department was the manufacturing
department, but in recent years, not only the
research department, but also retailers, restaurants,
IT and venture companies are advancing to
Vietnam.
This paper examines a future possibility in Vietnam
while exploring the situation of the overseas
expansion of Japanese companies, especially the
advance situation to Vietnam.
Introduction
The balance of trade in Japan depends on the
exportation of the industrial goods and the
exchange. The production activities of the Japanese
companies were sifted to overseas expansion in the
production base from the domestic production. The
reason is low personnel expenses, the easiness of
the raw material procurement, approaching to a big
market, declining birth rate tendency in recent years
and so on.
These reasons for stepping forward brought about a
factory move to the Southeast Asian nations
specifically. Moreover, the domestic labor shortage
became a problem with the decrease of the younger
age group in Japan in recent years, and became the
factor of the factory foreign countries developing.
Also, the parts factory which is located in the
Tohoku district received big damage by the
earthquake which occurred at the Tohoku district
and the tsunami by it in March, 2011. By the stop of
the nuclear power plant, the power company
implemented a plan power blackout and the
manufacturer had compelled to do a production stop
and to do production adjustment. The Tohoku
district where is close to Tokyo, was excellent
location as the procurement base of the part. The
company moved a production factory to Kyushu
district in Japan to say that the probability of the
earthquake occurring is low. Kyushu is located in
the southwest of Japan and is near the Southeast
Asian nations. However, the big earthquake
occurred mainly in Kumamoto in Kyushu in June,
2016. Japan is on Circum-Pacific volcanic belt, so it
is impossible to avoid an earthquake basically. The
development to the Southeast Asian nations of the
processing sector of the manufacturer accelerated by
these two big earthquakes.
In recent years, the development to Vietnam and
Myanmar is lively. Vietnam connects with Japan
through the South China Sea and the East China Sea
and is suitable for the marine transportation. Also,
Vietnam neighbors China and it writes down a big
market. In Vietnam, the service of the infrastructure
is lively and national buying power is looking up
too.
This paper shows the status of the overseas
development of the Japanese company, the one to
have explored status of stepping forward to Vietnam
specifically, and to have reviewed the possibility of
the future in Vietnam.
The trade of Japan
Japan is “the trade major country " as much as 4th
of the world following America, China, Germany.
Japan made the processing trade of which resources
are scarce, and import most of the fuel resources
and the industrial raw materials such as petroleum
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