JETRO Proposes Assistance for Japanese Companies to Broaden Business in Vietnam

PM Pham Minh Chinh (R) and JETRO Chairman Ishiguro Norihiko. Photo: VNA

Prime Minister Pham Minh Chinh has urged the Japan External Trade Organisation (JETRO) to provide assistance to Japanese companies looking to expand their presence in Vietnam, particularly in green and digital transformation, circular and knowledge-based economy, climate change adaptation, supporting industries, innovation, and technology transfer. He suggested that JETRO focus specifically on advances, green, and clean technologies. According to the Vietnam News Agency (VNA), this was reported.

At a reception in Hanoi on May 5, Prime Minister Chinh expressed his gratitude and appreciation to JETRO Chairman Ishiguro Norihiko for the organization’s practical and effective contributions to strengthening the trade and investment relationship between Vietnam and Japan.

According to the Prime Minister, the Vietnam–Japan expansive strategic partnership has been expanding in numerous domains, with high political trust and closer links between the two economies and citizens. Japan has kept its position as Vietnam’s primary economic partner, the leading partner in Official Development Assistance (ODA), the second most important partner in labour, the third major partner in investment and tourism, and the fourth most significant partner in trade.

Japan is launching a new-generation Official Development Assistance (ODA) program for Vietnam to aid the country in restoring its economy in the wake of the Covid-19 pandemic.

As there is still a great potential for bilateral economic, trade, and investment cooperation, the government leader proposed that Japan and JETRO keep offering assistance to Vietnam in constructing an independent and self-reliant economy that proactively and efficiently takes part in the global economy, thus helping to lift the Vietnam-Japan relationship to a higher level.

He also proposed that JETRO continue working with Vietnamese agencies to promote Vietnam’s image, potential, business opportunities, and incentives to major Japanese companies, while training the workforce and sharing management experience. Additionally, he urged Japanese investors to join and expand the model of “public leadership, private administration” in industrial parks.

Highlighting the cultural similarities and closeness that exist between Vietnam and Japan, Prime Minister [X] suggested that both sides should increase people-to-people exchanges and labour cooperation, particularly in the areas of vocational training and IT workforce.

At a Vietnam-Japan business networking in Ho Chi Minh City. Photo: VNA

As this year marks the 50th anniversary of the establishment of diplomatic ties between the two countries, the speaker urged JETRO to collaborate with Vietnamese ministries and agencies to organize successful trade and investment promotion activities.

The Vietnamese Government is committed to providing all necessary support and assistance to the business community, including holding dialogue sessions to listen to investors, reforming administrative procedures, and addressing any difficulties and obstacles they may face, Prime Minister Chinh said. He also stressed the importance of maintaining political and social stability in order to facilitate long-term investments for all stakeholders, while remaining mindful of harmonising interests and sharing risks.

Norihiko, for his part, expressed his great anticipation for Vietnam’s progress and the connection between the two countries, particularly in green growth and digital transformation.

JETRO highly commends the Prime Minister for engaging in dialogues with foreign investors, particularly Japanese businesses, in order to address their struggles and obstacles. Through this initiative, the Prime Minister has been successful in alleviating any issues these investors have faced.

Vietnam is the only nation in the Association of Southeast Asian Nations (ASEAN) to have two branches of JETRO, located in Hanoi and Ho Chi Minh City, according to the speaker. He continued by noting that these are also the most active offices of JETRO globally, highlighting that Vietnam is a highly attractive investment destination, particularly amid the recent disruptions of the international supply chain.

Norihiko also expressed his desire to reinforce cooperation with Vietnam in the festivities commemorating the 50th anniversary of the establishment of diplomatic relations between the two countries and promised to make every effort to help foster the ever-growing Japan-Vietnam partnership.

According to a survey conducted by the Japan External Trade Organization (JETRO) in 2022, 60% of Japanese investors in the Asia-Pacific region are planning to expand their operations in Vietnam within the next two years. This proportion is the highest in the Association of Southeast Asian Nations (ASEAN) and third highest in the entire Asia-Pacific region, following India (72.5%) and Bangladesh (71.6%).

A recent survey conducted by Japan External Trade Organization (JETRO) has revealed that Vietnam is the second most popular destination for Japanese companies to invest in, coming second only to the United States.

According to the poll conducted in August and September of 2020, the outlook for business profitability in Vietnam in 2022 has seen a dramatic resurgence in the wake of the COVID-19 pandemic, particularly in the sectors of production and consumption as well as direct services. This is due to the notable increase in export volume and market purchasing power. It is anticipated that the local manufacturing and non-manufacturing industries will experience a growth of more than 50% in 2023. Also according to the poll, conducted in August and September last year, the prospect of business profit in Vietnam in 2022 recovered strongly after Covid, especially regarding the sectors of production – consumption and direct services, thanks to significant increases posted in export volume and market purchasing power. In 2023, the local manufacturing and non-manufacturing industries are forecast to improve by more than 50%.