Vietnamese Prime Minister Pham Minh Chinh has provided key assurances to Japanese businesses while encouraging them to expand their investments and operations in Vietnam.

He positioned the Southeast Asian country as a crucial link in their global supply chains.

PM Chinh made this appeal while chairing a roundtable discussion with major Japanese corporations and enterprises in Hanoi on Saturday.

Highlighting 52 years of progress in Vietnam-Japan relations, during which the two countries established a comprehensive strategic partnership in November 2023, he emphasized that economic, trade, and investment cooperation have flourished and remain a cornerstone of their bilateral ties.

Chinh reaffirmed Vietnam’s commitment to selectively attracting foreign investment, prioritizing projects that emphasize high quality, efficiency, technological innovation, and environmental sustainability.

He urged Japanese businesses to invest in key sectors where Vietnam’s priorities align with Japan’s strengths, including the green economy, digital economy, circular economy, knowledge economy, semiconductors, new energy, green finance, biotechnology, and high-tech agriculture.

The prime minister assured Japanese investors that the foreign-invested economic sector remains an integral part of Vietnam’s economy.

He reiterated the government’s consistent policy of guaranteeing the legal rights and interests of foreign investors, including those from Japan.

He also reaffirmed Vietnam’s commitment to maintaining political stability, social order, and institutional transparency while fostering an increasingly attractive investment climate.

In addition to these assurances, PM Chinh emphasized Vietnam’s adherence to the principle of ‘three togethers,’ which focuses on strengthening dialogue among businesses, the government, and the people through listening and understanding.

It also involves sharing a common vision and taking collective action to foster rapid and sustainable development, while promoting mutual growth and success to ensure all parties can prosper and benefit from collective achievements.

Building on this spirit, he encouraged Japanese enterprises to expand their operations in Vietnam and position the country as a strategic hub in their global production and supply chains.

The prime minister also called on Japanese firms to collaborate with Vietnam in achieving ambitious economic targets, including eight percent GDP growth in 2025 and double-digit growth in the years that follow.

He urged Japanese investors to support Vietnamese enterprises in deepening their integration into global supply chains, diversifying markets, and expanding product offerings.

During the discussions, the Japanese businesses expressed strong interest in expanding their presence in infrastructure, semiconductors, renewable energy, clean energy including nuclear energy, automotive manufacturing, and commercial centers.

However, they also recommended improvements in administrative processes, calling for streamlined procedures, faster decision-making, and enhanced legal frameworks for emerging sectors such as data governance, according to the Vietnam News Agency.

Japanese Ambassador to Vietnam Ito Naoki reaffirmed that many Japanese businesses are eager to strengthen investment and trade relations with Vietnam.

He stated that these companies have high expectations for the country's economic growth and development in the near future.

Ozasa Haruhiko, chief representative of the Japan External Trade Organization (JETRO) in Hanoi, cited a recent survey as showing that over 60 percent of the Japanese businesses in Vietnam reported profitability in 2024 – the highest level in the past five years.

The survey also found that 56 percent of the Japanese firms plan to expand their operations in Vietnam within the next one to two years, the highest rate in ASEAN.

JETRO stated that this underscores Vietnam’s dynamic and rapidly growing economy.

Currently, Japan remains one of Vietnam's leading economic partners. It is the largest provider of official development assistance (ODA) and labor cooperation, the third-largest foreign investor, and the fourth-largest trade and tourism partner, the Vietnam News Agency reported.

Bilateral trade between Vietnam and Japan reached US$48.18 billion in 2024, marking a $3-billion increase from the previous year, according to official figures.

Regarding ODA, Japan has committed over $20 billion in concessional loans, nearly $750 million in non-refundable aid, and approximately $1.34 billion for technical cooperation.

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