Japan External Trade Organization (JETRO)’s Mission
JETRO Hanoi and JETRO Ho Chi Minh promote trade and investment between Vietnam and Japan. The organization also promotes digitalization and ‘value-adding’ to the economy. An essential task is to provide accurate and balanced information on the business climate of the country. While Vietnam is successfully attracting FDI, companies and investors need to acknowledge the ‘pros and cons’ of doing business in Vietnam. Just as the purposes of Japanese firms’ operations vary, so does JETRO’s activities across Vietnam.
Approximately twenty five percent of companies in Vietnam are engaged in export-only businesses with another twenty five percent targeting the domestic market. The other fifty percent are involved in mixed-purpose businesses. JETRO has assisted Vietnamese and Japanese firms’ interactions by holding business matching events, workshops and consultations. JETRO’s activities are multi-directional: ‘From Japan to Vietnam’ and ‘From Vietnam to Japan’.
Just as Vietnam wants to establish more start-up collaborations with Japanese global players, an increasing number of Japanese startups intend to start businesses with Vietnamese firms. These are exciting times and JETRO will continue to contribute to Vietnam’s continued economic development.
Japanese business outlook in Vietnam
JETRO’s December 2022 survey of more than 3,000 Japanese headquarters showed Vietnam ranked fourth in the world as an export destination. Vietnam ranked second, only to the United States, for direct investment priority indicating the incredibly high regard for the country. The surveyed firms suggested the Vietnamese market will grow as it is already home to many companies and business partners. In another survey of 603 Japanese companies in Vietnam last year, sixty percent of respondents said they would expand their business in the next one to two years. This is a much higher percentage than the ASEAN average of forty seven percent.
The survey showed that Japanese firms in Vietnam are more interested in creating value-added products than general-purpose products and allocate more resources for sales, research and development and logistics.
Challenges remain and foreign direct investment (FDI) companies in Vietnam face inflation, human resource shortages, administrative/procedure issues and underdeveloped infrastructure.
After overcoming the difficulties of the pandemic over the last three years, Vietnam has become an integral part of the global supply chain of Japanese companies. Today, member companies of the Japanese Chamber of Commerce and Industry in Hanoi, Da Nang, and Ho Chi Minh have reached over 2,000 at the end of 2022, the most in ASEAN.
Japan-Vietnam
For Japan, Vietnam is the country’s ninth largest export country while Japan is Vietnam’s fourth largest export destination. Specifically, regarding agriculture, forestry and fisheries, Japan is increasing its exports to the growing Vietnamese market and the country has become Japan’s fifth largest export destination within these sectors. Exports of these products from Vietnam to Japan are also increasing.
Just as Vietnam wants to establish more start-up collaborations with Japanese global players, an increasing number of Japanese startups intend to start businesses with Vietnamese firms. These are exciting times and JETRO will continue to contribute to Vietnam’s continued economic development.
Jetro Hanoi
CornerStone Building 9th Floor, 16 Phan Chu Trinh Street,
Hoan Kiem District, Hanoi, Vietnam.
+84-24–3825-0630
+84-24–3825-0552
[email protected]
Jetro Ho Chi Minh
14th Floor, Sunwah Tower, 115 Nguyen Hue Street,
District 1, Ho Chi Minh City, Vietnam.
+84-28-3821-9363
+84-28-3821-9362
[email protected]
