On February 15, 2023, the Vietnam Confederation of Trade and Industry (VCCI) in cooperation with the Japan Chamber of Commerce and Industry (JCCI) organized the “Vietnam – Japan Economic Forum 2023” in Hanoi: Creating innovations together to create sustainability Development Economy” on the occasion of the visit of Mr. Yoshihisa Suzuki, Chairman of the Japan-Mekong Business Cooperation Committee, to Vietnam.

The forum is the first in a series of activities that VCCI will coordinate with Japanese partners and will conduct in 2023 to celebrate the 50th anniversary of diplomatic relations between Vietnam and Japan.

IMPORT AND EXPORT BRAND IS $50 BILLION

Speaking at the forum, VCCI Chairman Pham Tan Cong stressed that after 50 years of establishing diplomatic ties, Vietnam-Japan economic cooperation has achieved remarkable and comprehensive development.

Japan holds the position among the top 3 largest foreign investors (FDI) in Vietnam with more than 4,835 projects in Vietnam with a total capital of over USD 64 billion. In terms of trade, the total import-export turnover of the two countries will reach nearly USD 50 billion in 2022, making Japan Vietnam’s fourth largest trading partner. However, with a future vision of the next 30 to 50 years, the economic cooperation between Vietnam and Japan still has great potential for growth.

Vietnam aims to become a developed, high-income country by 2045. To achieve this goal, Vietnam needs to maintain a steady GDP growth rate of 6-7% per year, which is a great opportunity for Japanese and Vietnamese companies to develop together.

At the forum, Vice Premier Tran Luu Quang also stressed that after 50 years of establishing diplomatic relations between the two countries, Japan is currently Vietnam’s leading economic partner and supplier of financial assistance, largest official development assistance, second-largest labor cooperation partner, third-largest investor and tourism partner, fourth-largest trading partner Vietnams.

The two sides also work closely and effectively together in many key areas such as: B. Transport infrastructure, high-quality human resources training, reform of economic institutions, science and technology, and education. …

In terms of investment, FDI flows from Japan have been present in 57/63 provinces and cities of Vietnam, with 4,978 valid projects with a total registered capital of nearly USD 69 billion (as of December 2022).

In particular, the large-scale projects that the leading Japanese economic multinationals such as Canon, Panasonic, Toyota, Honda, Yamaha, Suzuki, Mitsubishi, Sumitomo… have invested in Vietnam have attracted a lot of attention, many satellite investors, efficient operation.

Referring to Vietnam’s recent development, the Deputy Prime Minister said that thanks to good control of the Covid-19 epidemic, Vietnam’s economic growth will reach 8.02% in 2022, the highest in the last 10 years.

The total export turnover hit a new record of USD 732.5 billion, the trade surplus was USD 11.2 billion (last year it was USD 3.32 billion)… The size of the Vietnamese economy is estimated at USD 409 billion, the Trade volume estimated at $409 billion Top 30 economies in terms of trade.

Vietnam has also signed 15 free trade agreements with more than 60 countries and territories to increasingly diversify markets and products and participate in regional and global supply chains.

While the world economy is still facing many difficulties, Vietnam is still an attractive and safe destination for international investors. One of the typical examples is that the realized investment capital in Vietnam is estimated to be nearly USD 22.4 billion in 2022, the highest in the last 5 years.

With positive results in attracting investment, Vietnam has been included for the first time by the United Nations in the list of 20 countries attracting foreign direct investment worldwide. For 2023, the International Monetary Fund and the World Bank are forecasting economic growth in Vietnam of 6.2% and 6.7%, respectively.

Achieving these achievements requires close cooperation, effective coordination and timely support from the international community, including the government, people and businesses of Japan, in addition to Vietnam’s efforts and determination, said the Deputy Prime Minister.

Mr. Yoshihisa Suzuki, chairman of the Japan-Mekong Business Cooperation Committee, highly appreciated the close relationship between the two countries, saying that this relationship really makes Japanese companies feel very secure. In order to secure the supply chain against the recently increased geopolitical risks, many Japanese companies are again interested in Vietnam and other ASEAN countries.

In addition to the previous attractiveness as a manufacturing location, Vietnam, as a consumer country with a population of almost 100 million people, mostly young people, is becoming a very attractive country to expand the service industry and do business with Japanese companies.

THE BASIS FOR THE NEXT BIG STEPS

The Vice Prime Minister emphasized that Vietnam and Japan still have a lot of room and potential for cooperation and complement each other. To help develop a comprehensive strategic cooperation partnership, Vice Premier Tran Luu Quang said there is a need to further strengthen investment cooperation between the two countries, especially in key industrial sectors. At the same time, focus on technology transfer to Vietnam and promote green transformation.

In addition, trade cooperation between the two countries will be further expanded, including the effective implementation of bilateral and multilateral cooperation mechanisms such as the Vietnam-Japan Bilateral Free Trade Agreement (VJFTA), the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP). CPTPP Trade Agreement, the Regional Comprehensive Economic Partnership Agreement (RCEP) to soon achieve the goal of further increasing trade turnover bilaterally towards equilibrium.

According to the Deputy Prime Minister, both sides must develop a strategic partnership on a digital platform, thereby opening up investment opportunities and connecting companies; Exchange of experiences and knowledge about digital transformation and corporate governance for Vietnamese companies; and establishment of research and development (R&D) centers in Vietnam.

The Vice Prime Minister reiterated that the Vietnamese government strives to always accompany Japanese companies and create all favorable conditions for them to invest in Vietnam effectively and in the long term.

In response to the Deputy Prime Minister, Japanese Ambassador to Vietnam Mr. Yamada Takio also stressed that Japanese companies are very active in Vietnam, with over 200 companies – the country with the second largest number of companies after China) operating in Vietnam.

According to a survey by Jetro, Vietnam ranks second in the world after the United States as a country where many Japanese companies will operate in the future. In addition, another survey showed that more than 60% of Japanese companies have plans to expand their operations in Vietnam.

This is the highest number – well above the ASEAN average of 47%. It proves that Japanese companies are still most willing to invest in Vietnam.

This year marks the 50th anniversary of the establishment of diplomatic relations between Vietnam and Japan, under the motto “hand in hand, to the future, to the world,” Mr. Yamada Takio said that a very favorable wind is now blowing in Vietnam.

“I look forward to making this 50th anniversary the year that lays the foundation for major strides in the two countries’ future relations with the world,” stressed the Japanese ambassador.