Vietnamese investment in Japan: Opportunities and challenges

17:16 | 02/09/2016 Economy

(VEN) - Although Japan seems to be a promising market to invest, Vietnamese businesses still need to come up with many challenges.

Vietnamese investment in Japan: Opportunities and challenges


According to the Ministry of Planning and Investment’s Foreign Investment Agency Director Do Nhat Hoang, Vietnamese businesses had 35 projects in Japan worth more than US$7 million, a small investment capital compared to Japan’s total investment in Vietnam of US$40.2 billion.

In a workshop recently held by Ministry of Planning and Investment and Japan External Trade Organization (JETRO) on investment promotion and business expansion, more Vietnamese firms showed their interests in Japan, expecting a strong increase in investment capital from Vietnam to this country.

JETRO Hanoi Chief Representative Atsusuke Kawada said that JETRO will provide support for Vietnamese businesses investing in Japan such as free office space up to two months for business set up, and free consultancy in terms of taxes, labors and legal documents related to the establishment of representative offices and companies in Japan.

The Vietnam-Japan Economic Partnership Agreement, the Vietnam-Japan Bilateral Investment Treaty and the memorandum of understanding on investment promotion into Japan are perfect legal frameworks to support Vietnamese companies to invest in Japan.


According to Do Nhat Hoang, strict requirements and professionalism from Japanese partners are key challenges for Vietnamese businesses who are new in the market and lack experience.

Kawada, in addition, worried that the strong Japanese yen and an ageing population may be the barriers for Vietnam to expand businesses in Japan.

Instead of recruiting Japanese engineers, Vietnam should train their engineers and send them to work in Japan, which will be easier for recruitment and save labor costs, he recommended.

Vietnamese businesses should focus on its advantages such as information technology and agriculture, he said. Japan is looking for investment in IT, which is perfectly fit with Vietnam’s strength. In the agricultural sector, Japan cannot supply labor for investments, which is a good opportunity for Vietnam to send their well-trained staff working in Japan.

The Vietnam Business Association in Japan was established in 2013. The association has provided support for Vietnamese companies in business and investment opportunities in Japan, JETRO Executive Vice President Shigeki Maeda said. 


Nguyen Hoa