Home Asia Vietnam and Japan’s Economic Alliance has Opportunities, Says the Vietnamese PM

Vietnam and Japan’s Economic Alliance has Opportunities, Says the Vietnamese PM

According to the Prime Minister of Vietnam, Pham Minh Chinh, the established trade agreements and mutual trust between Vietnam and Japan open up a wide range of possible business opportunities.

Chinh urged Japanese businesses to increase their investment in Vietnamese infrastructure, energy, manufacturing, high-quality agriculture, smart cities, financial services, and banking on Tuesday at the Vietnam-Japan High-Level Economic Conference in Hanoi to commemorate 50 years of bilateral diplomatic relations.

In a quick aside, he suggested that qualified Japanese companies should look into joint ventures with their Vietnamese counterparts in new fields including digital transformation, green transformation, circular economy, and climate change response.

Vietnam also anticipates that Japan will step up its training of qualified scientists and human resources, assisting Vietnam in its goal of becoming a hub for regional and international value chains.

The prime minister reaffirmed that the Vietnamese government consistently sets all favorable conditions for Japanese investors to conduct profitable, long-term operations in Vietnam.

Vietnam is currently an important gateway connecting ASEAN (Association of Southeast Asian Nations) to the world and a lucrative market, according to Hideo Ichikawa, co-chair of the Japan-Vietnam Economic Committee under the Federation of Japanese Business Organizations.

He expressed appreciation for the Vietnamese government’s efforts in creating a welcoming business environment for private companies, particularly those from Japan.

According to a recent survey by the Japan Trade Promotion Organization (JETRO), 60% of Japanese businesses plan to increase their operations in Vietnam in the next one to two years. In contrast, there are about 500,000 Vietnamese living in Japan, making them one of the biggest foreign populations there.

According to PM Chinh, the three things that have made the two nations’ cooperation successful for more than a century are trust, seriousness, and determination.

According to Chinh, trade cooperation between the two nations has recently been vigorously pushed. He stated that numerous legislative frameworks for bilateral interactions have been developed by the two sides. They both participate in a number of important agreements, including the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) 

According to the PM, these trade agreements establish a crucial pathway for fostering investment and economic ties in a spirit of complementarity and mutual benefit.

According to data from Vietnam’s Ministry of Planning and Investment, Japan has become Vietnam’s top donor country with over JPY 2.7 trillion ($19.91 billion) in loans, almost JPY 100 billion in grant aid, and JPY 180 billion yen in technical cooperation after more than 30 years of providing official development assistance to the country.

Large-scale infrastructure projects like the construction of the Noi Bai and Tan Son Nhat International Airports, the Cai Lan, Lach Huyen, and Cai Mep—Thi Vai Seaports, the Thanh Tri and Nhat Tan Bridges, and the metro lines in Ho Chi Minh City and Hanoi all significantly benefit from this capital.

Japan is ranked third among 141 nations and territories investing in Vietnam, with more than 5,000 active projects totaling close to $70 billion. With about $50 billion in total commerce last year, Japan ranked as Vietnam’s fourth-largest trading partner. Japan received about $25 billion worth of exports from Vietnam.