Soaring Japanese FDI Reinforces Confidence in Vietnam’s Market

According to data from the General Statistics Office, in January 2025, Vietnam attracted nearly $600 million in FDI from Japan across 48 projects, out of a total of $4.33 billion in newly registered, increased, and contributed capital for share purchases. This impressive figure places Japan third among countries and territories investing in Vietnam, affirming the strong appeal of the Vietnamese market to Japanese investors.

Vietnam – A Strategic Investment Partner for Japan

Japan is a major and traditional investment partner of Vietnam, with over 5,500 projects already implemented. The manufacturing sector accounts for the largest proportion (37%) of total investment, indicating Vietnam’s importance as a production hub for Japanese businesses.

Strong Growth Prospects in 2025

The year 2025 is projected to witness a continued increase in investment flows from Japan to Vietnam. According to a JETRO survey, 56.1% of Japanese businesses plan to expand their business operations in Vietnam within the next 1-2 years, the highest in the ASEAN region. Additionally, 50.4% of businesses forecast increased business profits in 2025 compared to 2024.

AEON Vietnam: Long-Term Investment Commitment

AEON Vietnam, a major Japanese investor, continues to affirm its long-term investment commitment to Vietnam. The group plans to recruit an additional 5,000 employees in 2025 to meet the demands of its expanding retail operations.

Technology Collaboration, Driving Digital Transformation

Many Japanese manufacturing companies in Vietnam are actively collaborating with Vietnamese technology businesses to promote digital transformation, apply smart manufacturing, and enhance productivity and competitiveness.

Vietnam – Most Attractive Investment Destination in Asia

Mr. Takeo Nakajima, former Chief Representative of JETRO Hanoi, assesses Vietnam as one of the most competitive investment destinations in Asia due to its political stability, economic growth potential, and attractive business opportunities.

Challenges and Opportunities

While Japanese investors have strong confidence in the Vietnamese market, they also hope Vietnam will further improve its human resources, infrastructure, tax policies, and administrative procedures.