Here is Why India edges out Vietnam for alternative investment destination to China – a lesson for dithering Japanese
NEW DELHI. There is much ado between India and Vietnam about the alternative investment destination to China after the outbreak of COVID 19. While a survey by NNA Japan Co – a Japanese based Kyodo News Group – decoded Vietnam as the most promising destination for Japanese investors, Harvard Business Review was assertive to focus India the most potential investment destination for US companies shifting from China. A mega-investment of US $ 5.7 billion in India by Facebook was a case in point, according to the Pew Survey of USA.
Incidentally, the Japanese were in a dilemma. The noted Japanese financial institution (Japan Bank for International Cooperation) elevated India at the top for investment destination for medium-term, leaving behind China and Vietnam at second and third positions respectively, in its survey.
Amidst this paradoxical, Japanese data on investment flow in India and Vietnam evinced a favourable outlook for India. According to METI, India emerged 5th biggest receiver of Japanese investment in Asia in 2019 ( BOP base), leaving behind Vietnam at 6th place. Notably, Japanese investment in India was twice that in Vietnam in 2019. It quadrupled within three years – from the US $ 1.6 Billion in 2017 to the US $ 5.1 Billion in 2019. Against these, Japanese investment in Vietnam crawled to a marginal increase from the US $ 2.0 Billion in 2017 to the US $ 2.5 Billion in 2019. The trend shows the tenet of the Japanese reliance on India’s potential.
Why was it then India was toppled by Vietnam in the NNA survey within two months of the JBIC survey. In popularity and reliability, JBIC is more pronounced since it has been conducting the survey for three decades. What does it connote? Is the JBIC survey more reliable or NNA survey should be trusted to determine the Japanese future plan for alternatives to China? Read more...
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