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Mar 29, 2024 / 15:25

Vietnam among Japan’s top partners: KEIDANREN

Japanese firms are eager to expand in Vietnam and boost economic cooperation in various fields, including industrial support, digital transformation, high-quality workforce training, and global supply chain development.

Vietnam is regarded as one of the most significant partners, according to surveys conducted by the Japan Bank for International Cooperation (JBIC). In both the medium and long term, Vietnam ranks second among the countries in which Japanese enterprises are most interested in investing.

 The Prime Minister and Japanese business delegation. Photos: Nhat Bac

The view was shared by the Japan Business Federation (KEIDANREN) led by the co-chairs of the organization’s Japan–Vietnam Economic Committee, Masayoshi Fujimoto and Masayuki Hyodo, during a working session on March 29 in Hanoi.

The meeting aims to contribute to the implementation and materialization of the new Comprehensive Strategic Partnership between Vietnam and Japan. The meeting was attended by representatives from leading Japanese corporations across various sectors, such as JBIC, Japanese Airlines, Sojitz, Anna Holdings, Ad-Sol Nissin, Mitsubishi, and IHI, among others.

At the meeting, Prime Minister Chinh appreciated the cooperation and valuable contributions of KEIDAREN and the role of the two Co-Chairs in promoting the relationship between the two countries.

He said they serve as a bridge to help Japanese enterprises invest more in Vietnam, contributing to the strong development of bilateral cooperation in all fields, particularly in political and diplomatic relations, which serve as an important foundation for promoting economic, trade, and investment cooperation.

“Vietnam highly values its relationship with Japan as well as the activities of Japanese investors in the country,” Chinh said.

 The prime minister and the delegation. 

In recent years, Japan has continued to maintain its position as Vietnam's top economic partner, ranking first in ODA loan provision with nearly US$30 billion, second in labor (currently with over 520,000 Vietnamese workers in Japan and around 22,000 Japanese workers in Vietnam), third in investment (with 5,304 ongoing projects with a total registered capital of $74.4 billion), and fourth in trade (with bilateral trade reaching $45 billion in 2023).

Chinh also praised the successful implementation of the Vietnam-Japan Joint Initiative over the past 20 years and welcomed its continuation in the new era, focusing on five areas: promoting the Asia Zero Emission Community/Green Transformation (AZEC/GX), innovation and digital transformation, strengthening supply chains including the development of supporting industries, high-quality human resource training, and institutional reform to improve the investment environment.

These are concrete steps with significant implications for the implementation and materialization of the Comprehensive Strategic Partnership between the two countries, Chinh noted.

The co-chairs of the Japan-Vietnam Economic Committee stated that KEIDANREN and Japanese companies were pleased to see the upgrading of bilateral relations to a new level after the establishment of the Comprehensive Strategic Partnership.

They expressed their willingness to continue contributing to the new phase of bilateral relations, especially in the economic aspect, while appreciating the political and social stability, rapid economic development, abundant labor force, and large consumer market in Vietnam.

 Overview of the meeting. 

Japanese enterprises are eager to expand their businesses in Vietnam and contribute to economic cooperation in various fields, industrial support development, digital transformation, high-quality human resource training, and global supply chain building.

KEIDANREN and Japanese companies are particularly interested in accompanying and supporting Vietnam in implementing green energy transition and promoting projects within the framework of the Joint Statement on Establishing and Just Energy Transition Partnership (JETP) and Japan's Asia Zero Emission Community (AZEC) initiative.

The companies also made some proposals and recommendations to the Government and ministries to facilitate investment and business.

The Prime Minister suggested that, in a spirit of trust, sincerity, and effectiveness, KEIDANREN and companies should continue to enhance economic connections between the two countries, and expand investment cooperation activities, especially in the priority areas outlined in the Vietnam-Japan Joint Statement on upgrading relations to a "Comprehensive Strategic Partnership for peace and prosperity in Asia and the world".

Accordingly, cooperation and assistance will be extended to Vietnam in strategic infrastructure development, energy, supporting industries, high-quality agriculture, science and technology, green and digital transformation, environmental protection, climate change adaptation, semiconductor industry, high-quality human resource training, promotion of people-to-people exchanges, cultural exchanges, labor cooperation, among others.

In addition, participation in policy advocacy, administrative procedure reform, and improvement of the investment environment in Vietnam will be encouraged. Vietnam will continue to strengthen three strategic breakthroughs (institutional, infrastructure, and human resources) to create a fair, transparent, equal, and transparent investment and business environment, reduce compliance costs, logistics costs, and business waiting time, meet the human resource requirements of investors, and propose some policies to attract emerging industries.

The Prime Minister informed the guests of the setup of a task force on administrative reform, with him directly serving as the team leader.

Furthermore, Vietnam will continue to resolutely safeguard its independence, sovereignty, unity, territorial integrity, political stability, social order, macroeconomic stability, inflation control, promote growth, and ensure major economic balances, including ensuring electricity and fuel supplies, to ensure long-term business investors.

The Government of Vietnam will continue to accompany, listen, understand, and share with investors and the business community in the spirit of harmonious interests, shared risks, mutual cooperation, shared victories, shared benefits, and shared development, Chinh stressed.

KEIDANREN is the largest economic federation in Japan, consisting of 1,340 of Japan's largest corporations, 109 national industry associations, and 47 regional and sectoral economic organizations. Major corporations such as Mitsubishi, Sumitomo, Toyota, Toshiba, etc., are members of KEIDANREN.

The Vietnam-Japan Joint Initiative was initiated in April 2003. Over 20 years, the Vietnam-Japan Joint Initiative has completed 8 phases with 497 out of 594 items completed well and on schedule, contributing to a 20-fold increase in FDI from Japan to Vietnam (from $4 billion to $75 billion).

Based on the Joint Statement on upgrading Vietnam-Japan relations to a "Comprehensive Strategic Partnership for peace and prosperity in Asia and the world", both sides have agreed to implement the Vietnam-Japan Joint Initiative in the new era, Phase 1, which is expected to be implemented over 19 months from March 2024 to October 2025.