Factors contributing to Vietnam’s attractiveness to Japanese firms
Various Japanese enterprises are planning to expand their investment in Vietnam, where business insiders of Japan assess as the second most attractive investment destination after the US, according to Chief Representative of the Japan External Trade Organisation (JETRO) Najakima Takeo in Hanoi.
The Japanese-funded Nhat Tan Bridge in Hanoi (Photo: VNA)
Hanoi (VNA) – Various Japanese enterprises are planning to expand their investment in Vietnam,where business insiders of Japan assess as the second most attractiveinvestment destination after the US, according to Chief Representative of the JapanExternal Trade Organisation (JETRO) Najakima Takeo in Hanoi.
Addressing a recentconference, Takeo said although Japan’s direct investment into Vietnam declinedin the first half of 2022, it still posted impressive growth of over 59% in2021 and over 45% this year, the highest rate among the members of the Associationof Southeast Asian Nations (ASEAN).
A JETRO survey in 2021 revealedthat 55% of the Japanese firms in Vietnam were planning to expand operation and paying more attention to value-added products. Another of over 1,700Japanese companies by this organisation also showed that Vietnam is second only to the US in terms of investment attractiveness.
In an interview granted to “TheWorld and Vietnam” newspaper last May, JETRO CEO Sasaki Nobuhiko highlightedthe growing number of Japanese businesses in Vietnam, with about 2,000 firms atpresent. The Northeast Asian country is investing 64.5 billion USD into 4,935projects here.
He noted that Vietnam is thethird largest importer of Japanese products while Japan ranks fourth among Vietnam's export markets.
The Japanese-invested THACO MAZDA car production line in the Chu Lai Open Economic Zone in Quang Nam province (Photo: VNA)
Explaining Vietnam’sattractiveness to Japanese firms, Governor of the Japan Bank for InternationalCooperation (JBIC) Hayashi Nobumitsu hailed Vietnam’s efforts to maintainmacro-economic stability and described the country as a magnet for Japaneseinvestors.
Vladimir Kolotov, Director ofthe Ho Chi Minh Institute at Russia’s Saint Petersburg State University, said thepolitical stability, the transparency and predictability of theinvestment environment, the gradual opening of some economic sectors to foreigninvestors, and the legal foundation perfection are all factors benefiting foreigninvestors in Vietnam.
Another strong point is theyoung population, nearly 45% of which are aged between 25 - 54 and another 17.8%between 15 - 24, he noted, adding that Japan has received tens of thousands ofVietnamese students and trainees who have also come to work for Japanesecompanies after returning to the homeland.
Vietnam is activelyintegrating into global production chains, which is benefiting from favourableconditions thanks to the presence of major multinationals, including automobilegiants from Japan, Kolotov went on./.
JERA Inc., a power generation company of Japan, has signed a deal to buy a 35.1% stake at Vietnam’s Gia Lai Electricity Joint Stock Company (GEC) to tap the Southeast Asian nation's growing demand for electricity and further its own decarbonisation efforts, Nikkei Asia reported.
Permanent Deputy Prime Minister Pham Binh Minh on August 23 said he supports Vietnamese agencies and the Japan International Cooperation Agency (JICA) to hold regular meetings, seeking solutions to obstacles to ODA projects in Vietnam.
Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura co-chaired the 5th meeting of the Vietnam-Japan Joint Committee on Cooperation in Industry, Trade and Energy in Tokyo on August 23.
Prime Minister Pham Minh Chinh described Japan as a leading important economic partner of Vietnam during a reception in Hanoi on September 14 for Governor of the Japan Bank for International Cooperation (JBIC) Hayashi Nobumitsu.
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Minister of Finance Nguyen Van Thang acknowledged the target represents an important milestone for socio-economic development as well as a demonstration of the country’s aspiration for robust economic growth.
The price of E5 RON92 petrol is now capped at 20,631 VND (0.79 USD) per litre, up 1,169 VND from the previous adjustment, while RON95-III costs no more than 21,244 VND per litre, up 1,277 VND.
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The article by Cuba’s Inter Press Service detailed how Vietnamese private enterprise Agri VMA leased 1,000 ha of land in Los Palacios district, Cuba’s westernmost province of Pinar del Río, for rice cultivation over a three-year period. The project’s first harvest in 2025 recorded an impressive yield of 7.2 tonnes per hectare, far exceeding the local average of 1.6 tonnes.
During the visit, office representatives held a working session with the Tipaza Chamber of Commerce and Industry and met with several prominent local businesses operating in key sectors including industry, agriculture, fisheries, food processing, chemicals, pharmaceuticals and plastics.
A Nordic delegation to Vietnam International Sourcing 2025 in September will feature leading names in retail, consumer goods, logistics, and sustainable manufacturing, including global fashion giant H&M, offering fresh prospects for partnerships in fashion, textiles, and green supply chains.
The Japanese-funded Nhat Tan Bridge in Hanoi (Photo: VNA) 
The Japanese-invested THACO MAZDA car production line in the Chu Lai Open Economic Zone in Quang Nam province (Photo: VNA) 
