Vietnam, Japan Urged to Elevate Investment Ties to Co-Development Partnership

Prime Minister Le Minh Hung has urged Japanese businesses to continue trusting Vietnam as a long-term investment destination, expand their operations, and work more closely with Vietnamese partners to fully tap the substantial potential for cooperation between the two economies. The call emphasizes the evolution of bilateral economic ties from mere investment reception to joint development and value creation. Vietnam aims to leverage Japanese investment not only for capital but also for technology transfer, human resource training, and the development of new industrial sectors. Specifically, strengthening cooperation in science, technology, and human resource training is considered crucial for Vietnam's industrial upgrading. In recent years, there have been concrete moves such as Japanese firms starting to produce semiconductor-related materials in Vietnam and Japanese experts recommending advancements in chip manufacturing and packaging. Under its one-party system, the Vietnamese government positions foreign investment as a key pillar of its economic growth, encouraging investment in advanced technology and high-value-added industries. Japan has long been a major provider of Official Development Assistance (ODA) to Vietnam and a significant partner in economic cooperation. While Vietnam has strong economic ties with China, strengthening relations with Japan carries strategic implications, particularly in diversifying supply chains and mitigating geopolitical risks. Prime Minister Hung's remarks, underpinned by this context, signal an expectation for the two countries' economic relations to evolve into a more equitable and mutually beneficial "co-development partnership." This aims for Vietnam to enhance its technological capabilities and international competitiveness, while Japan seeks to secure new growth markets and stable production bases.