Vietnam is a safe destination for foreign investors amid global uncertainties, Prime Minister Pham Minh Chinh said at a meeting with 10 major Japanese tech firms on Saturday morning.

The Vietnamese government leader arrived in Tokyo on Friday afternoon, commencing his four-day trip to Japan for the Commemorative Summit for the 50th Year of ASEAN-Japan Friendship and Cooperation and bilateral activities at the invitation of Japanese Prime Minister Kishida Fumio.

He affirmed that the Southeast Asian nation remains strong and stands firm with support from its foreign friends and partners, as well as its available forces no matter what difficulties faced during the COVID-19 pandemic.

With its determination to build an independent and self-reliant economy, Vietnam has been ensuring macroeconomic balance, shoring up foreign exchange reserves to over US$100 billion and enjoying a trade surplus of more than $25 billion.

Speaking at the meeting, a representative of SBI Holdings said that SBI is developing some semiconductor production plants in Japan, and is considering setting up a base overseas.

“Vietnam and the Middle East are seen as potential destinations,” said the SBI representative.

SBI is working with Vietnam’s tech giant FPT to build an ecosystem in Vietnam.

Apart from its financial business activities, SBI has invested in Vietnamese e-commerce platform Sendo, multifunctional platform Utop, and SBI FPT Company.

“Strengthening supply chains is one of the most important factors for business activities, so we realize that deeper cooperation between nations with the same sense of purpose is absolutely crucial,” said a representative of DENSO Corporation, Japan’s leading mobility supplier.

Some participating representatives of Japanese firms also questioned what strengths Vietnam has and what challenges will face Vietnam during its journey of semiconductor development to join the global supply chain.

Vietnamese Prime Minister Pham Minh Chinh (C) affirms at a meeting with Japanese firms that Vietnam will be a safe base of foreign firms. Photo: Le Kien / Tuoi Tre

PM Chinh asserted that Vietnam expects to boost domestic semiconductor manufacturing and join deeply in the Japanese firms’ supply chains.

“We expect to make breakthroughs in chip manufacturing in Vietnam,” he said.

To fulfill this expectation, Vietnam has been easing investment and business rules, building more modern infrastructure and focusing on upskilling tech workers.

Besides, the Southeast Asian country is speeding up digitalization.

The government assigned the Ministry of Planning and Investment to build preferential mechanisms, and incentives related to tax and land use to encourage firms to invest in electronic and chip manufacturing projects.

The Ministry of Education and Training was tasked with boosting the semiconductor workforce.

The Vietnamese prime minister underlined that several firms from the United States and Taiwan are seeking investment opportunities in Vietnam, while an American enterprise has pledged to establish a base in Vietnam to develop the country's semiconductor industry.

PM Chinh also called on Japanese firms to tap the Vietnamese market.

“Vietnam is a developing nation, so it is in need of technology transfer,” he said.

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