Japan has emerged as a major hub for investors due to its robust economy, technological advancements, and established industries. Vietnamese investors can trade Japanese stocks from all these sectors on the Tokyo Stock Exchange (TSE) and Nikkei 225.
In this article, we take a look at the top Japanese industries on the TSE that Vietnamese investors should consider.
1. Technology
Investing in technological companies can provide exposure to Vietnamese investors in sectors like electronics, software development, telecommunications, and robotics.
The top companies one can invest in this sector are –
- Sony: Founded in 1946, Sony is a multinational conglomerate known for its expertise in electronics, gaming, entertainment, and innovative consumer products. Sony had given a steady 14.18% return on investment (ROI) as of December 2022.
- SoftBank: Softbank, founded in 1986, is a global telecommunications and technology conglomerate that also operates as a major investor in various sectors, including technology startups. It had an ROI of 2.83% as of June 2022.
- Nintendo: Known for iconic franchises like Mario and Pokémon, Nintendo is a renowned video game company founded in 1889 that develops and manufactures popular gaming consoles. It had given a 19.74% return on equity (ROE) as of June 2022.
*Past performance is not a reliable indicator of future performance
2. Automotive
Japan is home to some of the world's leading automobile manufacturers like Toyota, Honda, and Nissan, making the automotive industry an attractive investment option. Additionally, electric vehicle (EV) are gaining momentum, presenting potential investment opportunities in this space in Japan.
The top companies one can invest in this sector are –
- Toyota: Founded in 1937, Toyota is known for its manual, automatic, hybrid and electric vehicle technology. Toyota's steady ROI as of December 2022 was 5.56%
- Honda: A 1948 company, Honda is an automotive manufacturer known for its wide range of automobiles, motorcycles, and power equipment. The company emphasizes on its fuel efficiency and innovation, and had a 5.67% ROI as of December 2022.
- Nissan: Founded in 1933, Nissan is an automobile manufacturer specializing in a diverse lineup of vehicles and electric mobility through its Nissan LEAF model, it had an ROI of 1.27% as of 2022.
*Past performance is not a reliable indicator of future performance
3. Pharmaceuticals
Japan’s robust pharmaceutical industry contributes to 7% of the global pharmaceutical share. Investing in pharmaceutical stocks can provide Vietnamese investors exposure to companies involved in research and development, drug distribution, and healthcare services.
The top companies one can invest in this sector are –
- Takeda Pharmaceutical: A 1781 company, Takeda is a global pharmaceutical company engaged in research, development, and commercialisation of innovative therapies, Takeda gained the most returns in 2021 by adding 3.54% value to Japanese shares.
- Daiichi Sankyo: Founded in 1899, Daiichi Sankyo is a pharmaceutical company focusing on the discovery and development of novel drugs, particularly in areas such as oncology and cardiovascular diseases. The company had given a 5.9% ROE in FY 2020.
*Past performance is not a reliable indicator of future performance
4. Financial Services
Tokyo is a prominent global financial center, making the financial services sector an appealing investment choice for Vietnamese investors. This sector includes banks, insurance companies, asset management firms, and brokerage houses.
The top companies one can invest in this sector are –
- Mitsubishi UFJ Financial Group: Founded in 2006, it offers a wide range of financial services, including commercial banking, asset management, and investment banking, it had a steady ROI of 2.41% as of June 2022.
- Mizuho Financial Group: A 2000s company, Mizuho is a major financial institution providing comprehensive banking and financial services, including retail banking, corporate banking, and asset management, it had also given a steady ROI of 2.78%, like Mitsubishi as of 2022 reports.
*Past performance is not a reliable indicator of future performance
5. Retail
Japan has a vibrant retail industry with diverse consumer preferences. The Nikkei 225 index touched its one-week high in 2022 after the retail sector in the TSE soared up 2.61%.
The top companies one can invest in this sector are –
- Fast Retailing: A 1963 global apparel retailer known for its flagship brand, Fast Retailing markets under the Uniqlo brand name and offers high-quality and affordable clothing. The company was able to increase returns to owners by 16% in FY 2022.
- Seven & I Holdings: A 2005 diversified retail company operating 7-Eleven convenience stores worldwide, it offers a range of products and services catering to everyday needs. As of 2022, the company had provided 7.47% ROI.
*Past performance is not a reliable indicator of future performance
6. Real Estate
Japan's real estate market provides investment opportunities in commercial, residential, and industrial properties. The industry has experienced steady growth in recent years, especially with Japanese land prices increasing by more than 1.6% after the pandemic, attracting both domestic and international investors.
The top companies one can invest in this sector are –
- Mitsubishi Estate: A 1937 prominent real estate company involved in the development, management, and investment of commercial, residential, and industrial properties. Mitsubishi had given an ROI of 5.50% as of 2022.
- Mitsui Fudosan: A 1941 leading real estate development and management company, Mitsui had an ROI of 5.79% as of 2022. It is engaged in various sectors, including office buildings, retail properties, and urban redevelopment projects.
- Sekisui House: A 1960 renowned housing construction company, Sekisui House had an ROI of 12.84% in 2022 and specializes in the development of residential properties, including single-family homes, condominiums, and rental housing.
*Past performance is not a reliable indicator of future performance
Discover Japan's top-performing industries by investing in the TSE
Vietnamese investors seeking lucrative opportunities should consider investing in the TSE to gain access to Japan's thriving industries. With Japan's strong economy and technological advancements, these industries present attractive prospects for growth and higher benefit.
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