Headline: Vietnam in First half of 2024: Unlocking Trade and Investment Opportunities
Sub-headline: Strategic Insights into Key Sectors and the Path to Enhanced Economic Collaboration
Executive Summary: In 2024, the ASEAN-Japan Centre (AJC) strengthened trade and investment ties between Vietnam and Japan through a series of strategic initiatives, in collaboration with Vietnamese partners (MOIT, MPI) and Japanese partners (JETRO). Key activities included the recent Vietnam Trade and Investment Conference in Tokyo on July 23, a business mission from Japan to the Vietnam International Outsourcing Expo from June 3-9, and the Viet Nam – Japan Cross Border E-Commerce Conference on April 24. Additionally, AJC supported several provincial initiatives in attracting business connections with Japan, namely the agro-processing and green agricultural investment promotion mission from Binh Dinh Province, a tourism investment mission from Lao Cai Province, and an IT and high-tech investment mission from Hai Phong Province. These events highlighted Vietnam’s investment opportunities and dynamic economic landscape.
Introduction: Mr. Hoang Minh Chien, in his remarks during the Vietnam Trade and Investment Conference, stated, “Vietnam and Japan are opening a new chapter in their bilateral relationship that is substantive, comprehensive, and effective, meeting the interests of both sides and marking a breakthrough development in many aspects.” In line with this vision of enhancing ties between the two nations, the ASEAN-Japan Centre is committed to fostering economic relationships between ASEAN and Japan. In the first half of fiscal year 2024, we supported the Vietnam Investment & Trade Promotion Mission to Japan through several key activities. These initiatives aimed to showcase Vietnam’s investment opportunities and foster collaboration between businesses from both countries.
Objectives and Goals: The primary objective was to promote Vietnam as an attractive investment destination for Japanese businesses. The events sought to provide up-to-date information on Vietnam’s trade and investment climate, facilitate business networking, and explore opportunities in key sectors such as food, agriculture, manufacturing, and collaboration in agro-processing, e-commerce, and high-tech industries.
Main Content:
Activities and Highlights:
(I) Supporting VIETRADE Trade and Investment Mission to Japan
1. Kick-off Session (June 12, 2024, online)
- Preliminary Information Sharing:
○AJC (Anh): Provided an overview and updates on Japanese trade and investment statistics, trends, and collaboration with Vietnam.
○JETRO Hanoi (Mr. Nakashima): review activities of Japanese enterprises in Vietnam, offering insights of investment trend into non-traditional investment destinations of Vietnam, offering more opportunities for non-central provinces to attract investment from Japan.
○Wakayama Representatives: Shared insights on their prefecture’s investment environment and opportunities, opening opportunities to collaborate with Vietnamese business counterpart for mutual development
○Vietnamese Provinces: Offered initial information on investment opportunities and trade potential in their regions.
○Feedback: Japanese businesses provided feedback on improving information and expressed strong interest in collaboration.
- Preparation for Vietnamese Provinces:
○Feedback and guidance from JETRO, and experienced representatives from Wakayama, Japan businesses, was provided to improve the quality of promotional materials and effective communication strategies for engaging Japanese counterparts.
2. Vietnam Trade and Investment Conference (Tokyo, July 23, 2024)
- Investment Landscape and Information Sharing:
○VIETRADE and JETRO: Updated attendees on Vietnam’s trade and investment status, including priority sectors and recent regulatory developments.
○Provincial Officials: Provided insights into local investment incentives, highlighting regions like Quang Nam and Da Nang. - Business Networking/Matching Session:
○Seven Vietnamese businesses and Quang Nam Province’s OCOP products were showcased, facilitating direct engagement with Japanese companies.
○Pre-arranged meetings ensured smooth connections between Japanese investors and Vietnamese firms.
Key Highlights and Outcomes:
- Information Sharing:
○Participants gained a comprehensive understanding of Vietnam’s investor-friendly environment, including recent technological and logistics advancements.
○Vietnam’s popularity among Japanese investors was highlighted, with Vietnam being the second most favoured destination after the US.
- Fostering Collaboration:
○The business-to-business networking session enabled direct engagement, fostering trust and facilitating partnerships. Quang Nam’s OCOP products attracted interest from Japanese retailers.
Takeaways for Investors:
Vietnam presents a vibrant economic landscape with opportunities in manufacturing, consumer goods, financial services, and more. The country’s strategic location, competitive labour costs, and growing consumer market make it an attractive destination for global investors. The young and educated workforce, coupled with supportive government policies, further enhances Vietnam’s appeal.
(II) Viet Nam – Japan Cross Border E-Commerce Conference (April 24, 2024):
- Knowledge Exchange:
○Focused on enhancing trade integration through knowledge exchange and technology transfer between Japanese and Vietnamese companies.
○Rikkei Inc. and Rakuten shared insights on the e-commerce ecosystem, encouraging Vietnamese companies to expand through e-commerce.
- Partnerships and Joint Ventures:
○The conference fostered partnerships, showcasing Japanese technologies and innovations to Vietnamese stakeholders. Participation in the “Advanced E-Commerce & Retail Expo Spring” facilitated connections with potential partners.
(III) Vietnam International Outsourcing Expo (June 2-10, 2024):
- Trade and Investment Promotion:
○The expo facilitated increased trade and investment, with Japanese delegates participating in business matching sessions that lead to several potential businesses’ collaboration in food, agro-processing.
○Son La and Dong Nai provinces tailored events to encourage partnerships, with discussions on technology transfer and agricultural cooperation. - Market Exploration: Japanese companies gained firsthand insights into the Vietnamese market, understanding the regulatory environment and business opportunities.
- Networking: Extensive networking opportunities connected Japanese businesses with Vietnamese counterparts, government officials, and industry experts.
Way Forward and Engagement: AJC will continue to support and facilitate trade and investment initiatives between ASEAN and Japan. Future events will focus on deepening these relationships and exploring new market opportunities. We encourage stakeholders to stay engaged and take advantage of the insights and connections made during these activities.
