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Japan remains a top FDI investor in Vietnam,web cá độ uy tín with manufacturing as its primary focus, as evidenced by the recent "Japan Business Pitch Vol.2" event

In the context of deepening international economic integration, Japan continues to reaffirm its position as one of the leading foreign direct investors (FDI) in Vietnam. The recent "Japan Business Pitch Vol.2" event, held on July 30, once again underscored the long-term investment commitment of Japanese enterprises in the Vietnamese market, particularly in the manufacturing sector.

Event overview. Photos: Hoang Nam

According to the latest data from the Japan External Trade Organization (JETRO), as of July 2024, Japan remains among  the top five FDI investors in Vietnam. The manufacturing sector remains the primary focus of Japanese investment, accounting for nearly 50% of the total investment capital. This highlights the suitability of Vietnam's business environment for Japanese companies, especially in the context of the global supply chain shift. "70% of Japanese companies operating in Vietnam are looking to expand their production scale with more modern business models," said Takeo Nakajima, representative of JETRO Hanoi.

Mr. Takeo Nakajima, Representative of JETRO Hanoi.

Despite a 20%  decline in new project launches in 2024 compared to the previous year, the investment value of Japanese enterprises in Vietnam has grown steadily. Mr. Nakajima noted that the decline in the number of projects is mainly due to fluctuations in the yen exchange rate.

Evaluating Vietnam's investment environment, Yoshikuni Taniguchi, President of UMC Electronics Vietnam, believes that Vietnam still has a long way to go, especially in improving product quality, production efficiency, and cost reduction. UMC Electronics will continue to expand its business operations in Vietnam and seek collaboration opportunities with Vietnamese enterprises.

With competitive advantages such as a plentiful labour force, reasonable production costs, and attractive investment incentive policies, Vietnam is increasingly becoming a desirable destination for Japanese investors. The economic cooperation between the two countries is expected to continue to thrive, bringing numerous benefits to both sides.