In December 2024, Japan registered 25 new projects with negative US$112 million in newly registered capital, according to Vietnam’s Ministry of Planning and Investment. This marks a 7 percent decrease in the number of new projects compared to November, which recorded 27 new projects and US$601.23 million in newly registered capital.

In 2024, Japan invested in 270 new projects with US$3.5 billion in newly registered capital.

Foreign direct investment (FDI) from Japan into Vietnam is one of the most significant and longstanding economic relationships between the two countries. Japan consistently ranks among Vietnam’s top foreign investors, with investments spanning manufacturing, infrastructure, real estate, retail, and energy. Prominent Japanese corporations, including Toyota, Honda, AEON, and Sumitomo, have established extensive operations in Vietnam, contributing to the development of industrial zones, urban projects, and transportation systems.

Vietnam’s strategic location, competitive labour costs, and strong economic growth make it a key destination for Japanese investors seeking to expand in Southeast Asia. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Vietnam-Japan Economic Partnership Agreement (VJEPA) have further strengthened trade and investment ties, offering preferential conditions for Japanese businesses. In recent years, there has been a growing focus on renewable energy, digital transformation, and high-tech manufacturing. As Vietnam continues to prioritise sustainable development and industrial modernisation, Japanese FDI is expected to remain a driving force in the country’s economic growth.

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