A new era in Vietnam - Japan cooperation

Destination Not to Be Missed

There continues to be affirmations about Vietnam consistently being an "unmissable destination" for Japanese businesses. In a recent survey by the Japan External Trade Organization (JETRO), it was revealed that as many as 56.7% of Japanese enterprises currently operating in Vietnam have plans to expand their businesses in the next 1-2 years.

Following a survey of 849 Japanese businesses operating in Vietnam, JETRO stated that the "drive for business expansion" remains robust. Among these, when categorized by industry, the rate of manufacturing businesses intending to expand is 47.1%, while for non-manufacturing sectors, it stands at 65.5%.

These figures are quite promising and once again underscore the continued trust Japanese businesses have in Vietnam's market potential.

"Not just AEON, but other Japanese enterprises also aim to invest in Vietnam, as Vietnam possesses several attractive elements, including high economic development potential, rapid growth of the middle class," said Mr. Furusawa Yasuyuki, a member of AEON's Board of Directors overseeing the Vietnamese market, and the General Director of AEON Vietnam Co., Ltd.

Meanwhile, UNIQLO, a leading Japanese retail brand and part of Fast Retailing, recently celebrated its 4th anniversary in Vietnam. Referring to these 4 years as "an amazing journey," Mr. Nishida Hideki, General Director of UNIQLO Vietnam, mentioned that from the first store in Ho Chi Minh City, UNIQLO has expanded to 22 retail stores nationwide - an exceedingly rapid expansion pace.

"In the coming time, we will further enhance product quality, provide the best shopping experience, and commit to contributing to Vietnam's long-term development," said Mr. Nishida Hideki.

Crucially, alongside expanding retail operations, UNIQLO is also expanding its manufacturing presence in Vietnam.

Additionally, several other prominent Japanese names are continuing to plan for and expand their investments in Vietnam. Sumitomo Mitsui Banking Corporation (SMBC - Japan) recently completed the acquisition deal of shares in VPBank, valued at $1.5 billion USD. Sumitomo, along with investing in major projects like Van Phong Thermal Power Plant and partnering with BRG for a $4.2 billion smart city project, is seeking further opportunities to expand investments in industrial park infrastructure to attract more Japanese investors.

These are the next generation of Japanese investors, following in the footsteps of successful ventures by Honda, Toyota, Panasonic, FujiXerox, Canon, etc. They have left a mark as leading investors, ensuring Japan maintains its "top position" among countries and territories with significant investments in Vietnam.

A New Era in Vietnam - Japan Cooperation

After elevating their relationship, a new era in Vietnam - Japan cooperation is being ushered in. Specifically, Japanese media also anticipates that a new era in Japan - Vietnam cooperation will be established through private investments.

Recalling an article from the middle of the year, the Japanese economic news site (jbpress.ismedia.jp) published an article by scholar Hiroyuki Kawashima urging Japan to increase private investment in Vietnam, or risk being left behind and becoming "Vietnam's former benefactor."

According to the scholar, while Japan has supported Vietnam's infrastructure development, it has not made an equivalent investment, while many other countries have leveraged this infrastructure to increase their investments. Thus, to maintain the strong relationship between Japan and Vietnam in the future, private investment from this region will become crucial.

Highly valuing investments from Japan, Minister of Planning and Investment Nguyen Chi Dung has repeatedly emphasized that, alongside Vietnam ensuring it remains a preferred destination for Japanese businesses looking to invest abroad, Japanese enterprises must also be more proactive and faster in deciding to invest in Vietnam.

He also expressed his hope that, apart from traditional fields, Japanese enterprises will continue to explore investment cooperation in Vietnam, focusing on key sectors such as semiconductor chips, renewable energy, high-tech agriculture, smart factories, digital transformation...

Source: Vietnam Investment Review