Vietnam Calls on Japanese Businesses to Deepen Investment and Cooperation

Hanoi, The Gulf Observer: Prime Minister Phạm Minh Chính has urged Japanese enterprises to strengthen their engagement with Vietnam, positioning the country as a strategic base for expanding their investment, production, and business activities.

Speaking at a high-level dialogue with Japanese businesses in Hanoi on March 1, PM Chính emphasized the importance of bilateral economic cooperation, which remains a cornerstone of Vietnam-Japan relations. Over the past 52 years, the two nations have developed a comprehensive strategic partnership for peace and prosperity in Asia and beyond.

Japan is among Vietnam’s top economic partners, being its largest provider of official development assistance (ODA) and labor cooperation, the third-largest investor, and the fourth-largest trade and tourism partner. Currently, Japan has over 5,500 investment projects in Vietnam, with bilateral trade in 2024 surpassing $46.2 billion. Japan has committed over $20 billion in concessional loans, nearly $750 million in non-refundable aid, and approximately $1.34 billion for technical cooperation.

According to the Japan External Trade Organization (JETRO), 56.1% of Japanese enterprises plan to expand operations in Vietnam within the next two years—the highest rate in ASEAN. PM Chính highlighted this as proof of Vietnam’s continued attractiveness as an investment destination.

During the dialogue, Japanese businesses commended Vietnam’s investment climate and expressed interest in expanding their footprint in key sectors such as infrastructure, semiconductors, renewable energy, clean energy—including nuclear energy—automotive manufacturing, and commercial centers. However, they also called for improved administrative procedures, faster decision-making, and enhanced legal frameworks for emerging industries like data governance. They urged Vietnam to resolve challenges in major projects, particularly ODA-funded infrastructure, including the Ho Chi Minh City Metro Line 1 and the Nghi Sơn Refinery.

PM Chính acknowledged these concerns and assured businesses that Vietnam is actively streamlining its political and administrative systems to provide optimal services for investors. He directed Ho Chi Minh City authorities to resolve key issues related to the Metro Line 1 project by April 30, 2025.

Looking ahead, Vietnam is targeting an 8% GDP growth in 2025 as part of its broader economic strategy, aiming for double-digit growth in subsequent years. The government is focused on three strategic breakthroughs: institutional reforms, infrastructure development, and high-quality human resources.

The Prime Minister invited Japanese enterprises to collaborate in achieving these ambitious growth targets and encouraged them to support Vietnam’s transition to green and sustainable financing, particularly through initiatives like the Asia Zero Emission Community (AZEC) and Japan’s Innovation/Digital Transformation Fund.

He reiterated Vietnam’s commitment to selectively attracting foreign investment in high-value sectors, including the green economy, digital economy, circular economy, knowledge economy, science and technology, semiconductors, electric vehicles, green finance, biotechnology, healthcare, and high-tech agriculture.

PM Chính also called for greater cooperation in strengthening supply chains, developing supporting industries, and enhancing workforce skills. He urged Japanese businesses to accelerate ODA project disbursements, simplify procedures, and work towards aligning regulatory frameworks between the two nations.

Reaffirming Vietnam’s commitment to foreign investors, the Prime Minister assured that the government would safeguard their legitimate rights and interests, while ensuring political stability, social order, and policy consistency to foster long-term investment and growth.