Nearly 47 percent of Japanese firms in Vietnam plan expansion
Despite a raft of difficulties plaguing 2020, nearly 47 percent of Japanese businesses investing in Vietnam said they will expand operations in the next one or two years, the Japan External Trade Organisation (JETRO) said on February 8.
The Japanese-invested Foster Electric Co. Ltd in the Vietnam-Singapore Industrial Park in Bac Ninh province (Photo: VNA)
HCM City (VNA) - Despite a raft of difficultiesplaguing 2020, nearly 47 percent of Japanese businesses investing in Vietnamsaid they will expand operations in the next one or two years, the JapanExternal Trade Organisation (JETRO) said on February 8.
Unveiling the results of a survey of Japaneseenterprises investing abroad in financial year 2020, from April 2020 to March2021, JETRO noted that among the more than 900 in Vietnam that took part in thesurvey, over 400 expressed an intention of expanding functions such as normaland high added-value goods production, logistics, and research.
In particular, the rate of Japanese businessesplanning to boost sales and normal goods manufacturing in Vietnam is highcompared to the level in other countries and regions.
About 16.4 percent of respondents also said theywill step up investment in equipment and other new investments in the timeahead.
Japanese firms have not only paid recent attentionto manufacturing and processing but also digital transformation, trade, andhi-tech agriculture, the survey found.
Hirai Shiji, Chief Representative of JETRO in HCMCity, said their expansion plans are fuelled by the higher revenue possibilitiesand Vietnam’s rising economic growth potential in the years to come.
Japanese enterprises are also considering there-establishment of certain supply chains affected by COVID-19, for example bychanging purchasing units or production bases.
Up to 18.8 percent of respondents said that if theywere to change suppliers, they would select those in Vietnam - the highest ratein the 20 Asian and Oceanic countries included in the survey. There were also 18.1percent that said they would choose Vietnam if they changed production bases, puttingthe country in second position after Thailand (20 percent).
Japanese businesses said Vietnam is highly regardedthanks to its growth potential, political and social stability, and lowerlabour costs compared to other countries in the region.
Also pointing out the obstacles facing Japanesefirms, the survey recommended that to attract new investors and encourageexisting businesses to expand, Vietnam should develop supporting industries andimprove its domestic supply capacity.
The JETRO report showed that in financial year2020, due to COVID-19, 52.8 percent of Japanese enterprises in Vietnam posted fallingprofits against 2019, while 29.4 percent recorded stable profits and 17.8percent posted an increase.
They expressed optimism about the prospects for Vietnam’seconomic recovery this year thanks to its effective control of COVID-19./.
Japanese enterprises raised concerns over institutions and policies in Vietnam during a dialogue on December 21, which were then cleared up by representatives from Vietnamese ministries and agencies.
Vietnam holds huge potential in medical tourism that is expected to help the country attract more foreign tourists, including those from Japan, Associate Prof., Dr. Luong Ngoc Khue, Director of the Health Ministry's Department for Medical Examination and Treatment, has said.
Despite being heavily affected by the COVID-19 pandemic, Japanese manufacturers in Vietnam have officially returned to production and recruitment since the fourth quarter of last year, according to a report released by recruitment services provider Navigos Search earlier this week.
The Saigon Commercial Joint Stock Bank (SCB) has recently entered into a strategic cooperation deal with Kiraboshi Business Consulting Vietnam, the representative of Kiraboshi Bank of Japan.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
The Japanese-invested Foster Electric Co. Ltd in the Vietnam-Singapore Industrial Park in Bac Ninh province (Photo: VNA) 
