(VOVWORLD) -The Ministry of Industry and Trade reports that Japan has 5,000 valid projects worth 70 billion USD, ranking 3rd out of countries and territories investing in Vietnam. After 20 years of implementing the Vietnam-Japan Joint Initiative, the two sides have completed 84% of the commitment to improve Vietnam’s business environment and reinforce Japanese investors’ confidence.
 Vietnam-Japan Economic Summit (photo: Duong Giang/VNA) |
The Vietnam-Japan Joint Initiative, instigated in April 2003 by the Prime Ministers of the two countries, has contained policy dialogue between the Vietnamese government and Japanese businesses.
Nakajima Takeo, chief representative of the Japan Trade Promotion Organization, JETRO, said Japanese businesses are showing more interest and have increased investment in Vietnam.
“Despite global economic and geopolitical challenges and the slow growth of Japan's foreign direct investment, Vietnam remains Japan’s leading partner. Japan’s FDI flow to Vietnam increased 59% in 2021 and 45% in 2022. Our survey shows that 55% of Japanese enterprises are planning to expand operations in Vietnam. It’s the highest rate among ASEAN countries,” said Nakajima Takeo.
Japan will introduce more specific solutions and increase resources to strengthen connectivity and support Vietnamese enterprises. This will improve capacity and allow Vietnam to deeply participate in the global value chain, including a Development Program for SMEs in digital transformation, industry development, and human resource training.
Ichkawa Hideo, Advisor of Resonac Holdings, Co-chair of the Japan-Vietnam Economic Commission, said, “Since 1986 Vietnam has reformed, developed a market economy, and expanded infrastructure. Now Vietnam has a stable socio-political situation and is an attractive market for Japanese investors. Japan has cooperated with Vietnam in developing the support industry and human resources, and policy recommendations for building a more favorable investment environment in Vietnam. The 50th diplomatic anniversary will be a turning point that opens up good cooperation and new potential for the two countries."
Nguyen Minh Thao, Head of Business Environment and Competitiveness Department of the Central Institute for Economic Management said: “We have priorities for selecting foreign investment projects, especially high-tech projects for sustainable development. We can exploit the advantages of their technology. Localities should give priority to environmental and creative issues.”
The Vietnam-Japan Joint Initiative will not only be a dialogue channel for solving problems of Japanese enterprises, but through it, the Japanese side will provide consultancy for Vietnam’s policy-making process, focusing on issues of technology transfer, digital transformation, green transformation, and promotion of innovation.
Prime Minister Pham Minh Chinh applauded the initiative’s results, saying, “The Vietnam-Japan Joint Initiative, the special cooperative mechanism between the two countries, has been implemented for the last 20 years in eight phases and created positive results in improving the investment environment and enhancing Vietnam's competitiveness to attract foreign investors in general and Japanese investors in particular. We highly appreciate the determination, seriousness, and efficiency of Japanese investors when doing business in Vietnam. I acknowledge the sharing, trust, and commitment of the Japanese business community in Vietnam."