Japanese businesses confident in Vietnam’s reforms, growth

THE HANOI TIMES — Japanese businesses are confident in Vietnam’s recent reforms and the restructuring of central ministries and local administrations over the past two months, said Funayama Tetsu, former Chairman and CEO of Mitsubishi Vietnam.

Speaking at the Vietnam–Kasai Economic Forum held in Osaka on September 9, he said that Japanese companies are closely following Vietnam’s developments under the new structure.

As administrative procedures become increasingly simplified, the investment climate in Vietnam will continue to improve, the executive added.

The representative of the business associations in Osaka and the Kansai Economic Federation also expressed his optimism about Vietnam’s recent performance, noting that GDP growth in the second quarter of 2025 remained strong at 7.96% year-on-year. Vietnam has also set an ambitious target of double-digit growth from next year through 2030.

"The implementation of the two-tier local government model on July 1 will further streamline procedures and improve the investment environment, a matter of great concern for Japanese businesses," said Funayama.

Takashima Tomohiro, Executive Vice President of the Japan External Trade Organization (JETRO), said that Japanese companies highly value Vietnam’s investment climate for its market size, growth potential and political and social stability, all exceeding the ASEAN average.

According to JETRO’s annual survey, more than 56% of Japanese firms in Vietnam plan to expand operations within one to two years, the highest rate in ASEAN.

Each year, JETRO receives more than 4,000 inquiries about Vietnam, ranking third worldwide and first in the region. Many Japanese firms also train Vietnamese staff at their headquarters before assigning them to management positions in local subsidiaries.

Maehara Makoto, Director of the International Relations Division of the Kansai Bureau of Economy, Trade and Industry, emphasized Vietnam’s rapid growth and noted that many Kansai companies are expanding their presence in the country.

Since its establishment in 2012, the Kansai–Vietnam Economic Exchange Conference has become a regular platform for sharing information and supporting Kansai firms investing in Vietnam, he said.

Deputy Prime Minister Le Thanh Long praised the cooperation and assistance from international friends, including Japan, for the country’s socio-economic achievements.

“Over more than 50 years, Vietnam and Japan have developed strong and substantive relations in all fields. The two countries’ relationship is a model partnership marked by high political trust, growing common interests, comprehensive cooperation, deepening strategic confidence, and vibrant people-to-people exchanges,” he said.

According to Long, economic, trade, and investment cooperation remains a pillar and a bright spot in bilateral relations. Japan continues to be one of Vietnam’s largest provider of official development assistance (ODA) finances, the biggest labor cooperation partner, the third-largest investor and the fourth-largest partner in trade and tourism.

Japan has provided Vietnam with over US$20 billion in loans, nearly $750 million in grants and about $1.3 billion in technical cooperation. To date, more than 5,600 Japanese projects have been registered in Vietnam with total investment nearing $80 billion.

The deputy prime minister called on Japanese businesses to help Vietnam access sustainable green finance and deepen cooperation in the digital economy, renewable energy, semiconductors, healthcare and high-tech agriculture.

He noted that the potential for bilateral cooperation remains immense and urged both sides to strengthen local-to-local partnerships and accelerate priority projects.

Among key areas are climate change adaptation in northern mountainous provinces, the construction of the Vietnam–Japan University and support for Vietnamese firms to integrate more deeply into global value chains, Long said.

“With sincerity, trust and mutual benefit, we pledge to create the best conditions for foreign investors, including Japanese enterprises, to operate stably and sustainably in Vietnam,” he added.