Key Takeaways
- Robust Economic Momentum and High Growth Ambitions: Viet Nam enters 2026 on the heels of an extraordinary year of economic growth. The country achieved a GDP growth rate of 8.02% in 2025, significantly outpacing initial global forecasts. Driven by a record trade volume of $930.05 billion and a decade-long streak of trade surpluses, Hanoi is looking far ahead. Viet Nam’s current blueprint aims to position the country among the top three industrial nations in ASEAN by 2030, with a long-term goal of achieving high-income, developed status by 2045.
- Japan as a Cornerstone Strategic Partner: Japan continues to be a premier force in Viet Nam’s foreign direct investment (FDI) landscape, boasting nearly $80 billion across over 5,700 projects. Investor confidence remains exceptionally high: 56.9% of Japanese companies already operating in Viet Nam plan to expand their operations over the next 1–2 years—the highest expansion intent recorded within the entire ASEAN region. This momentum builds heavily on the “Comprehensive Strategic Partnership” established between the two nations.
- A Strategic Pivot to Semiconductors, AI, and Tech: Viet Nam is actively shifting from labor-intensive manufacturing to a high-value, tech-driven economy. Key highlights include:
- Semiconductors: The country is deploying its “C = SET + 1” formula (Chips, Specialized, Electronics, Talent + 1 safe destination) to become a global microchip hub, backed by an aggressive target to train 50,000 engineers by 2030.
- Artificial Intelligence: Following the passing of the Law on Artificial Intelligence (2025), Viet Nam is establishing regulatory “sandboxes” and dedicated national AI funds to foster localized innovation.
- Spotlight on Hung Yen Province: A Gateway for Japanese Capital: Strategically positioned within the northern “Hanoi – Hai Phong – Quang Ninh” economic triangle, Hung Yen Province was showcased as a premier hub for Japanese manufacturing. Home to the highly successful, Japanese-developed Thang Long Industrial Park, the province continues to attract massive projects in electronics and automotive components. Moving forward, Hung Yen is prioritizing a “green transition,” integrating clean energy (offshore wind and LNG) alongside smart city infrastructure.
- Tailored Support and Aggressive Incentives for Japanese SMEs: To attract a broader tier of Japanese small and medium-sized enterprises (SMEs), Viet Nam has established specialized “Japan Desks” across various provinces to eliminate language and administrative barriers. Crucially, the Vietnamese government committed to a 30% reduction in administrative red tape and is offering highly competitive fiscal incentives:
- Corporate Income Tax (CIT) cuts down to 10%–17%.
- Land rent exemptions for up to 15–17 years in prioritized investment zones.
- Import tax exemptions on machinery, equipment, and raw materials that cannot yet be produced domestically.
Viet Nam–Japan Investment and Trade Cooperation Conference
The ASEAN-Japan Centre (AJC), in partnership with the Viet Nam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade of Viet Nam, the Japan External Trade Organization (JETRO), and the Viet Nam Trade Office in Japan, recently hosted the Viet Nam-Japan Investment and Trade Cooperation Conference 2026 on July 2, 2026.
The event brought together top government leaders, industrial park operators, and Japanese business representatives to explore expanding economic corridors, supply chain resilience, and new bilateral ventures. The core of the seminar focused on Viet Nam’s macroeconomic surge, high-tech industrial shifts, and practical investment incentives, featuring insights from key regional experts:
- Dr. Kunihiko Hirabayashi, Secretary General of the ASEAN-Japan Centre (AJC), delivered the opening remarks, highlighting the 400-year historical trade relationship between Japan and Hung Yen Province. He stressed that Japanese investors prioritize long-term trust and human relationships over short-term profits when selecting business partners.
- Mr. Le Hoang Tai, Deputy Director General of VIETRADE, delivered the welcoming remarks and underscored the partnership’s strength, noting that Japan has over 5,700 active projects in Viet Nam exceeding $79 billion. He pointed to Hung Yen’s Thang Long Industrial Park as a model preferred by major corporations like Sumitomo and Panasonic.
- Mr. Ta Duc Minh, Commercial Counselor of the Embassy of Viet Nam in Japan, highlighted Viet Nam’s entry into upper-middle-income status following an 8.02% GDP growth and a $930 billion trade volume in 2025. He detailed a shift toward “New Generation FDI” in high-tech (AI/semiconductors), backed by a 30% reduction in red tape and local “Japan Desks.” Link to presentation: Click here
- Mr. Yutaka Yasunaga, Director, Asia and Oceania Division, Research Department, JETRO Head Office, shared that while manufacturing remains vital, Japanese investment is surging into Viet Nam’s retail and service markets. The increased volume of investments is coupled by rising purchasing power of the population in the country, which surpassed 100 million in 2023. He noted that maintaining the expansion interest of 56.9% of Japanese firms requires addressing Northern Viet Nam’s labor shortage and increasing administrative transparency. Link to presentation: Click here
- Mr. Vu Thanh Van, Director General of the Hung Yen Province Department of Industry and Trade, showcased the province’s strategic location within the northern economic triangle, hosting nearly 1,000 FDI projects worth $17.5 billion. He committed to a “Business Companion” philosophy to support their four pillars: high-tech, clean agriculture, energy, and smart urban tourism. Link to presentation: Click here
The event concluded with a dedicated afternoon business matching session between Vietnamese and Japanese companies, local governments, and industrial parks. With individual negotiation tables set up for each organization, this session offered an invaluable platform for participants to skip emails, form direct business connections, and talk business in real-time.
Moving Forward
As global supply chains continue to realign, the ASEAN-Japan Centre remains committed to supporting enterprise growth and industrial collaboration across ASEAN member states. By lowering the barriers to entry through knowledge-sharing and strategic networking, this conference marked another step forward in strengthening economic ties and fostering sustainable trade partnerships between Viet Nam and Japan.
