Japan remains a top-three investor in Vietnam with more than 81.2 billion USD in cumulative registered capital, and many Japanese companies keep announcing investment and expansion plans, a signal that they still see growth upside in the Southeast Asian country.

Bandai Vietnam Co., Ltd. in Phu Tho province is a Japanese-owned FDI enterprise. (Photo: VNA)

A strategic investor with deep roots

Political and diplomatic ties are deepening, but economic, trade and investment cooperation remain the load-bearing pillars of the Vietnam–Japan Comprehensive Strategic Partnership. Trade keeps scaling and Japanese capital retains a remarkable position.

Bilateral trade has grown steadily and in balance, hitting about 52 billion USD in 2025, double 2014’s 27.4 billion USD and up 11% from 2024. Over the past decade, the trade volume has expanded 1.8 times.

In the first nine months of 2026, trade between the two countries reached 43.71 billion USD, up about 15.34% annually.

Vietnam earned 3.18 billion USD from exports to Japan and spent 20.53 billion USD on imports. At the current pace, full-year trade is expected at about 58 billion USD.

Spokeswoman of the Ministry of Foreign Affairs Pham Thu Hang said on November 4 that the growth trajectory could bring the 2030 trade target of 60 billion USD forward.

Electrical equipment, electronic components and auto parts are expected to remain the standout categories.

Investment is also a highlight of bilateral cooperation. As of September 30, Japan had about 5,872 valid projects worth over 81.2 billion USD in Vietnam, ranking third among 154 countries and territories.

Registered Japanese FDI in the first nine months stood at 2.65 billion USD, up 15.5%, reported the Ministry of Finance’s Foreign Investment Agency.

Opening more room to lure quality Japanese capital

About 2,000 Japanese firms are operating in Vietnam. They concentrate in processing and manufacturing (61%), power production and distribution (15%) and real estate (12%), with a presence in 33 of the 34 cities and provinces.

Ho Chi Minh City is the biggest destination, followed by Thanh Hoa, Hanoi, Hai Phong and Dong Nai.

A new survey by the Japan External Trade Organisation (JETRO) found that 56.9% of Japanese companies in Vietnam plan to expand in the next one to two years, citing higher exports, stronger domestic demand and a push to beef up sales functions.

Chief Representative of JETRO Hanoi Ozasa Haruhiko said expansion plans edge up only slightly, but Vietnam lead ASEAN for a second straight year and tops Asia and Oceania on the metric.

It shows that Japanese firms still view Vietnam as a highly promising market and retain positive expectations for its investment climate and growth outlook.

Japanese registered capital during January–September rose just 4.7% year on year, below the 76.4% rise for Vietnam overall.

With 2.65 billion USD in registered FDI during the nine-month period, Japan ranked seventh among 101 countries and territories investing in Vietnam, down three places year-on-year.

That puts pressure on Vietnam to convert more of the relationship into high-tech projects, stronger business-to-business links and better use of potential in high technology, innovation and green transition.

Tsuchibashi Akito, Chairman of the Japan Chamber of Commerce and Industry in Vietnam, said Japanese companies invest with a long-term, decades-long partnership view.

They want Vietnam to keep improving its legal framework, make policy more predictable and simplify administrative procedures.

A stable and transparent business environment, he said, will help pull in new capital, accelerate technology transfer and develop talent, bringing benefits to both sides.

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