20 years of Japanese investment in HCMC

The Vietnam - Japan Economic Partnership Agreement (VJEPA), which officially took effect in 2009, marked a new turning point in the two countries’ economic cooperation and created a favorable legal framework for trade development, Mr. Vo Van Hoan, Vice Chairman of the Ho Chi Minh City People’s Committee, told the 20th anniversary of the Japanese Businesses' Roundtable Conference in Ho Chi Minh City, held on December 14.

As of the end of November, the total number of Japanese projects in the city stood at 3,218, including 1,479 direct investment projects and 1,739 cases of indirect investment through the form of capital contribution or share purchases.

Total investment capital had reached nearly $7.42 billion, accounting for 10.4 per cent of all foreign investment in the city, making Japan its fourth-largest foreign direct investor.

The fields that Japanese enterprises have focused on are processing and manufacturing, wholesale and retail, professional activities, science and technology, real estate, warehouse transportation, information and communications, construction, accommodation and catering services, health and social assistance activities, and education and training.

According to Mr. Mizushima Kozo, President of the Japanese Chamber of Commerce in Ho Chi Minh City (JCCH), the city has many attractive features for Japanese investors in particular and foreign investors in general. JCCH’s membership surpassed 1,000 enterprises in 2019 and is ranked third among Japanese business associations overseas, following those in Shanghai and Bangkok.

The Japanese business community hopes that the Ho Chi Minh City government will continue to address factors hindering business operations and build a trusting relationship between the parties.

Mr. Hoan said the city’s government will continue to coordinate with the JCCH to carry out investment promotion activities and attract investors from Japan.