Solidified Business Health in Japan-Vietnam Relations

In a significant move towards deepening their partnership, Japan and Vietnam have identified key areas for future cooperation during a meeting between Prime Minister Pham Minh Chinh and Japanese businesses on August 12, 2025, in Hanoi. The focus lies primarily on high technology, green transition, and semiconductors, along with human resource training and technology collaboration [1].

The collaboration aims to strengthen not only business-to-business ties but also expand to intergovernmental levels, enhancing economic and technology diplomacy between the two countries. This decision comes after Japan's commitment to propose new investment projects in Vietnam and new loan packages under the Asian Zero Emissions Community (AZEC) framework, as announced by the Japanese Ambassador [2].

Japan, being the fourth-largest bilateral trade partner with Vietnam, is also the third-largest source of investment and international tourism for the Southeast Asian nation. As of July 31, 2025, Japan had 5,608 valid projects in Vietnam with registered capital of US$79.4 billion [3].

Notable Vietnamese companies such as FPT, Rikkei, and VMO have expanded cooperation and investment activities in Japan. On the other hand, Japan continues to be Vietnam's largest provider of official development assistance (ODA).

The meeting, attended by Deputy Prime Ministers Hò̀ Đức Phớc and Nguyễn Chí Dũng, key officials from central ministries and agencies, Japanese Ambassador to Vietnam Ito Naoki, and senior representatives from major Japanese business associations and enterprises, also highlighted challenges faced by Japanese companies in ongoing projects and business operations in Vietnam.

Prime Minister Pham Minh Chính expressed his commitment to resolving these issues and creating more favorable conditions for Japanese investment growth in Vietnam. Japanese companies operating in the country were thanked for their contributions, with the success of the recent visit of Japanese Prime Minister Shigeru Ishiba to Vietnam noted [4].

In addition to the key areas mentioned above, the partnership scope also includes expanding cooperation in areas such as economy, trade, investment, science and technology, digital transformation, and green transition. Emphasis was also placed on people-to-people and cultural exchanges, education, and improving the conditions for Vietnamese workers in Japan [2].

Major Japanese projects in Vietnam include the Nghi Sơn Refinery and Petrochemical Complex, the Đông Anh Smart City project, and the Nghi Sơn 2 BOT Thermal Power Plant. The leaders also identified key areas for future cooperation, including semiconductors, digital transformation, green transition, and disaster prevention [5].

In the first seven months of 2025, Japan's newly registered capital reached $2.3 billion, an increase of 7.4 per cent year-on-year. Vietnam's investors, meanwhile, have 126 projects in Japan, with total registered capital of $20.5 million, primarily in science and technology and wholesale and retail trade [6].

The collaborative efforts between Japan and Vietnam are set to foster a more sustainable and innovative future, benefiting both nations and strengthening their bilateral relationship.

References: [1] https://vietnamnet.vn/en/news/cooperation-areas-between-vietnam-and-japan-focus-on-high-technology-green-transition-and-semiconductors-788711.html [2] https://www.japantimes.co.jp/news/2025/08/13/business/japan-vietnam-pm-meeting-investment-cooperation/ [3] https://www.vietnamplus.vn/japan-has-5608-valid-projects-in-vietnam-with-registered-capital-of-us79-4-billion/224039.vnp [4] https://www.japantimes.co.jp/news/2025/08/13/business/japan-vietnam-pm-meeting-investment-cooperation/ [5] https://www.vietnamplus.vn/japan-vietnam-leaders-identify-key-areas-for-future-cooperation/224040.vnp [6] https://www.vietnamnet.vn/en/news/japanese-investors-register-us2-3-billion-in-vietnam-in-first-seven-months-of-2025-788708.html

The collaboration between Japan and Vietnam covers a broad scope, including economy, trade, investment, science and technology, digital transformation, and green transition.
Japan's commitment to propose new investment projects in Vietnam and new loan packages under the Asian Zero Emissions Community (AZEC) frame was announced by the Japanese Ambassador.
Each party has identified semiconductors, digital transformation, green transition, and disaster prevention as key areas for future cooperation.
The partnership between the two nations aims to foster a more sustainable and innovative future, providing benefits for both countries and strengthening their bilateral relationship.
Japanese companies Operating in Vietnam, such as the Nghi Sơn Refinery and Petrochemical Complex, the Đông Anh Smart City project, and the Nghi Sơn 2 BOT Thermal Power Plant, contribute significantly to the Vietnamese economy.
The partnership between Japan and Vietnam extends beyond business relations to include people-to-people and cultural exchanges, education, and improving conditions for Vietnamese workers in Japan.
Japanese Ambassador Ito Naoki attended a meeting in Hanoi where concerns faced by Japanese companies in Vietnam were highlighted, with Prime Minister Pham Minh Chinh expressing his commitment to resolving these issues for the growth of Japanese investment in Vietnam.