On September 9, the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT), the Vietnam Trade Office in Japan, and the Japan External Trade Organization (JETRO) held an online trade conference to connect investment between Vietnam and Japan with the participation of hundreds of enterprises from the two countries.
At this event, Director General of the Vietnam Trade Promotion Agency Vu Ba Phu affirmed that Japan is always one of the major investors in Vietnam in both terms of the number of projects and the total investment capital.
According to Mr. Vu Ba Phu, the wave of Japanese investment in Vietnam has constantly increased in both the number of enterprises and investment capital.
Specifically, in 2018, Japan led the list of countries investing in Vietnam with US$8.59 billion, accounting for 24.2 percent of the total investment capital among 112 countries and territories with investment projects in Vietnam.
By the end of 2019, more than 2,000 Japanese enterprises were investing in Vietnam, and the flow of foreign direct investment (FDI) from Japan continued to increase strongly. In terms of FDI capital attraction by the end of 2019, Japan ranked second with a total registered capital of $59.3 billion, accounting for 16.7 percent.
According to experts, the Vietnamese market has great potential to attract Japanese enterprises to invest in production expansion. Not only large enterprises and corporations, but now small and medium-sized enterprises of Japan have also increased investment promotion in Vietnam.
Japanese enterprises also tend to invest in other provinces in Vietnam, instead of focusing only on Hanoi and Ho Chi Minh City.
According to JETRO's survey on Japanese enterprises investing in Asia and Oceania in February this year, 63.9 percent of Japanese enterprises doing business in Vietnam will continue to expand their business, the highest rate in the ASEAN and the third in Asia and Oceania region.
The MoIT affirmed that in the coming time, Vietnam will continue to complete institutions and policies to improve the quality and efficiency of foreign investment cooperation to focus on attracting foreign investment cooperation selectively with quality, efficiency, technology, and environmental protection being the main evaluation criteria. The country will prioritize projects with advanced technology, new technology, high technology, clean technology, modern governance, high added-value, spillover effects, and connection to the global production and supply chains. This is also the strength of Japanese enterprises. This investment cooperation will complement and help each other to develop together.
The MoIT of Vietnam and the Vietnam Trade Promotion Agency are ready to support and create favorable conditions for Japanese enterprises to expand their investment and business relations with Vietnam in the coming time.