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Mekong Center: Asia's new hub
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2. Logistics industry.

The other area where increased direct Japanese investment would be prudent is in the logistics industry.

Vietnam's membership to the WTO has opened the door for tremendous trade opportunities, but it still lacks the logistical prowess of more developed countries like Japan. Vietnam also has a competitively priced labor force meeting the demands of a growing logistics industry.

This logistics business has the potential for high return on investment within the Mekong Center.

Companies, thus, should focus their investments in ways to particularly enhance multichannel transport a critical part of logistic networks. This involves a series of complex matrixes from outbound and inbound logistics, to multiple distribution locations, to inventory.

Even within Japan, it is well known by the business elite that the sophistication of the logistics business is the driving force behind the country's perennial place as one of the world's top exporting countries.

Businesses with operations in multiple prefectures still effectively act as one production line in many instances logic is the key.

The new Mekong Center has the potential to be the most dynamic economic region in Asia. Its draws include a majestic river and its tributaries that are a commercial lifeline connecting the three countries, skilled workers, a strong work ethic, an interconnected Web of manufacturing and logistical advantages and a critical mass of domestic consumers.

The author is president of Nintai Inc, an investment advisory firm focusing on Asia Asahi Shimbun.

(China Daily April 1, 2008)

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