Japanese Businesses Affirm Việt Nam as Key Location for Establishing Production Centers

Ha Noi, The Gulf Observer: In a significant meeting with National Assembly Chairman Vương Đình Huệ on Thursday, the co-chairs of the Việt Nam-Japan Economic Committee emphasized Việt Nam’s pivotal role in establishing production centers. Fujimoto Masayoshi and Hyodo Masayuki, leading figures of the committee, led a delegation from the Japan Business Federation (Keidanren) to engage in discussions at the summit initiating the Việt Nam-Japan Joint Initiative in the New Era.

The collaborative project encompasses five principal areas of focus: fostering the Asia Zero Emission Community (AZEC); facilitating green transition, innovation, and digital transformation; fortifying the supply chain; nurturing high-quality human resources, particularly in IT, artificial intelligence, and semiconductors; and implementing mechanism reforms aimed at enhancing the business climate.

During talks with the Vietnamese top legislator, Japanese representatives concurred that Việt Nam, as a developing nation boasting a sizable population, diligent workforce, and promising consumer market, presents an attractive investment destination. Many Japanese enterprises are keen to bolster bilateral relations and extend their operations within Việt Nam, particularly in software development, supporting industries, and clean energy production.

Members of Keidanren expressed hope that the Vietnamese National Assembly (NA) and government would expedite administrative reforms to augment the business-investment climate, thereby enticing more Japanese firms to invest in Việt Nam.

NA Chairman Huệ commended the successful execution of the Việt Nam-Japan Joint Initiative over the past two decades, underscoring Việt Nam’s unwavering commitment to and appreciation of Japanese investment and recommendations for legal and administrative reforms conducive to a favorable business environment.

Chairman Huệ concurred with the initiative’s five focal points, labeling them as critical emerging sectors. He urged Keidanren, the Vietnamese Ministry of Planning and Investment, and other governmental entities to devise a pragmatic action plan characterized by clarity regarding cooperation mechanisms, operational nature, financial resources, stakeholder responsibilities, while also conducting evaluations to draw lessons from unsuccessful cooperation in the six focus industries outlined in the 2013 Industrialisation Strategy.

As part of the legislative framework for plan implementation, the Vietnamese NA is deliberating on pertinent bills such as the Law on Defence, Security Industries, and Industry Mobilisation, alongside administrative and educational reforms.

Chairman Huệ called upon the Việt Nam-Japan Economic Committee and Keidanren to sustain collaborative efforts with Vietnamese departments, fostering dialogues on policies and facilitating information and experience exchange to enhance the Vietnamese business-investment climate.

Furthermore, Keidanren was encouraged to showcase Việt Nam’s image, investment opportunities, and conducive environment to major Japanese corporations, especially within the five key sectors outlined in the joint initiative.

Inaugural Phase of Việt Nam-Japan Joint Initiative in New Era Commences

A gathering convened in Hà Nội on Wednesday to launch the initial phase of the Việt Nam-Japan Joint Initiative in the New Era. In his address, Vietnamese Minister of Planning and Investment Nguyễn Chí Dũng lauded the initiative as a distinctive collaboration between the two governments, fostering a transparent and favorable business climate in Việt Nam through policy dialogue forums between Japanese investors and relevant Vietnamese ministries and sectors.

Japanese Ambassador to Việt Nam Yamada Takio remarked on the initiative’s evolution over two decades, completing eight phases and achieving timely completion of 84% of its workload, consequently stimulating foreign capital inflows into Việt Nam, notably from Japan.

Participants from both sides concurred that the inaugural phase, spanning 19 months, would undergo a mid-term review in December of this year, with a summit slated for October 2025 to assess the entire process. Both parties pledged concerted efforts towards implementing commitments outlined in the action plan, aiming for the mutual prosperity of the Vietnamese and Japanese business communities, and the advancement of bilateral relations.

As of February 20, Japanese investors had injected US$74.3 billion into 5,288 projects in Việt Nam. Notably, registered investment from Japanese entities in the first two months of 2024 surged by 290% year-on-year, totaling $422.4 million.

This substantial commitment underscores the deepening economic ties between Việt Nam and Japan, signaling promising prospects for further collaboration and investment in the years to come.