Vietnam has been named by Japanese firms as the most promising destination in Asia to invest in this year, with India and Southeast Asian countries dominating other top spots, according to the latest survey released by NNA Japan Co., a Kyodo News group company.

In the survey, conducted online from November to December, Vietnam received 42.1 per cent of the 820 valid responses, based on factors such as its potential as a growing market and large supply of skilled, low-cost labor.

Other respondents to the survey who are expatriates working for Japanese firms in Asia, attributed their choice to the country’s proximity to China.

India was second at 12.2 per cent, with expectations for its growing market and its potential as a doorway to the Middle East and Africa among the reasons cited.

Myanmar jumped three spots from the previous year to third place at 11.6 per cent, while Indonesia was fourth at 6.6 per cent.

China, which appears to have lost its appeal somewhat as an investment location due to concerns about its trade war with the US and rising labor costs, ranked fifth at 5.1 per cent.

NNA is a news agency providing economic and business reports for Japanese companies operating in Asia.