Japanese firms wish to scale up business in Vietnam
Tidy profits have motivated around 64 percent of Japanese firms in Vietnam to consider expanding their business in the Southeast Asian country, according to the Japan External Trade Organisation (JETRO).
Tidy profits have motivated around 64 percent of Japanese firms in Vietnam to consider expanding their business in the country. (Photo: VNA)
Hanoi (VNA) – Tidy profits have motivated around 64 percent ofJapanese firms in Vietnam to consider expanding their business in the SoutheastAsian country, according to the Japan External Trade Organisation (JETRO).
Last year, Japanese investors poured some 2.89 billion USD into 655 projects inVietnam, up 1.9 percent in the number of projects as compared to 2018.
Sixty-six percent of Japanese investors reported good profits from theirVietnam operation in 2019, JETRO said.
Nakajima Takeo, Chief Representative of JETRO’s Hanoi Office, said along withthe US-China trade war that has driven further investment into Vietnam, soundinvestment and business climate is behind the fact that more Japanese firmswant to increase their presence in the country.
Vietnam has become a destination of Japanese businesses’ interest as theGovernment and local administrations have worked to remove bottlenecks for themin a timely manner, and it is proactively engaging in value chains of Japaneseenterprises, he added.
A total of 38.02billion USD of foreign direct investment (FDI) had been poured into Vietnam asof December 20, 2019, a 10-year high, according to the Foreign InvestmentAgency (FIA) under the Ministry of Planning and Investment.
The amount,representing a 7.2 percent increase on a yearly basis, included newlyregistered capital, additional capital to existing projects, and share purchaseby foreign investors.
The Republic of Korea and Japan remained the largest investors of the nation.
Hanoi absorbed the lion’s share of the FDI flow with 8.45 billion USD or 22.2percent of the total figure. It was followed by Ho Chi Minh City with 8.3billion USD.
The disbursementof FDI capital also reached a record of 20.38 billion USD./.
After lagging behind other provinces and cities nationwide in attracting Japanese investment, the central city of Da Nang has emerged as a popular destination for investors from the Land of the Rising Sun.
Vietnam has been an attractive destination for Japanese investors and experts predicted that more Japanese firms will come to do business in the Southeast Asian country thanks to its economic growth and integration advantages.
Authorities in the southern province of Binh Phuoc on September 9 had a working session with Japanese-based multi-sectoral Mitani Sangyo group, which is running in seven companies in Vietnam.
Japanese investors are pouring more capital into the southern province of Binh Duong to tap into local potential in electronic component manufacturing, automobile assembly and production, and supporting industries.
The festival marks a significant milestone in promoting the brand, value, and legacy of traditional fish sauce - a product deeply rooted in the island’s identity and history spanning over 200 years.
According to Mastercard data, Vietnam has recorded a remarkable 92% compound annual growth rate (CAGR) in contactless transaction volume from Q4 2022 to Q4 2024.
Tuan expressed his confidence that LH, with its expertise and experience, would swiftly implement the urban area project, contributing to a modern urban landscape for the province.
With its strategic location, abundant workforce, and modern infrastructure, Vietnam holds significant potential to become a leading centre for power and electronics production in the region and the world.
The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.
A notable trend is the shift toward satellite regions. With land scarcity and soaring prices in Ho Chi Minh City and Hanoi, investors are eyeing provinces like Hung Yen, Bac Ninh, and Hai Phong, which are benefiting from improved technical infrastructure and transport connectivity.
To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.
The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.
This latest order builds on a previous agreement signed at the Singapore Airshow last year for 40 engines, bringing the total number of Trent 7000 engines ordered by the airline to 80.
Minister of Industry and Trade Nguyen Hong Dien acknowledged that despite concerted efforts by ministries and local authorities in combating fake and substandard goods, the situation remains highly complicated, attributing the persistent challenges to high profits luring numerous participants, increasingly sophisticated violations, limited resources within enforcement agencies.
The group also placed among the Top 5 energy companies in Southeast Asia and secured the top spot among the largest Vietnamese enterprises featured on the list.
The zone will cover 1,881 ha, comprising functional areas for production, logistics, trade and services, digital technology industry, information technology, and innovation.
Dung underlined several key objectives, including a comprehensive review of the legal framework governing SOEs, and called for updates that reflect international standards and support modern, transparent governance.
While the US market has become more difficult to access due to new tax policies, Australia could play the role of a trade cushion, helping to reduce shocks and maintain export momentum for Vietnam's shrimp industry.
Vietnam Cycle Expo 2025 will coincide with the Vietnam Sport Show 2025, an international exhibition on sports and outdoor entertainment, expected to attract more than 20,000 visitors in the three-day event.
Tidy profits have motivated around 64 percent of Japanese firms in Vietnam to consider expanding their business in the country. (Photo: VNA) 
