Vietnam is increasingly affirming its position as a top investment destination in Southeast Asia, attracting a growing flow of capital from Japanese enterprises.
Amid ongoing global economic uncertainties, Vietnam has emerged as a highly attractive market, drawing special attention from Japanese investors. According to the latest survey by the Japan External Trade Organization (JETRO), 56.1% of Japanese businesses in Vietnam plan to expand their operations within the next 1–2 years — the highest rate among ASEAN countries.
Data from the General Statistics Office of Vietnam shows that in January 2025 alone, Japan invested nearly USD 600 million in Vietnam through 48 new projects. This represents a sharp increase year-on-year, making Japan the third-largest foreign investor in Vietnam in the first month of the year.
Japan has long been a traditional and influential investment partner in Vietnam. To date, Japanese investors have implemented over 5,500 projects nationwide, with the manufacturing sector accounting for 37% of total investment — reflecting strong long-term interest in Vietnam’s growing processing and manufacturing industries.
Findings from JETRO’s 2024 Survey on Japanese Companies Operating Overseas, which gathered input from over 5,000 companies across 20 countries and territories, further reinforce investor confidence in Vietnam. In addition to expansion plans, over 50% of Japanese firms expressed optimism about their profit outlook in Vietnam for 2025, expecting better performance compared to the previous year.
In the retail sector, AEON Vietnam — a strategic investor from Japan — continues to scale up its presence. AEON representatives stated that Vietnam is currently the group’s second most important market, after Japan. In 2025, AEON Vietnam aims to recruit nearly 5,000 new employees to support the expansion of its nationwide retail network.
AEON Long Bien – One of the Largest Shopping Centers in Hanoi
In addition, many Japanese manufacturing companies are actively partnering with local tech firms to accelerate digital transformation and adopt smart manufacturing technologies. The goal is to improve productivity, enhance competitiveness, and increase the export value of goods produced in Vietnam for global markets.
However, despite these positive signals, several challenges remain that Japanese enterprises hope will be addressed. Administrative procedures are still considered complex, particularly those related to fire safety regulations, environmental protection, investment licensing, and import approvals. Moreover, businesses have proposed that Vietnam continue to reform its tax system, improve workforce quality, and modernize infrastructure.
With the Vietnamese Government's ongoing reform efforts and the growing confidence of Japanese businesses, Japanese investment in Vietnam is expected to continue rising significantly in the near future — unlocking substantial development opportunities for both countries.