Vietnam, Japan increase green growth cooperation

Japan is currently Vietnam’s top bilateral and multilateral FTA partner, as a member of the ASEAN-Japan Comprehensive Economic Partnership (AJCEP), the Vietnam-Japan Economic Partnership Agreement (VJEPA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP).

Bilateral trade between Vietnam and Japan has been fostered by Japanese FDI and ODA

Japan has been Vietnam’s leading economic and trading partner in recent years. Their bilateral trade has been relatively balanced and sustainable with stable growth. In 2022, the bilateral trade value reached nearly US$50 billion, including US$24.2 billion worth of Vietnam’s exports to Japan, and US$23.4 billion worth of imports from this market. Japan is currently Vietnam’s fourth largest trading partner, third largest export partner and third largest import partner.

Bilateral trade between Vietnam and Japan has been fostered by Japanese foreign direct investment (FDI) and official development assistance (ODA). Japan has been a major investment partner and ODA provider for Vietnam over the past many years.

By August 2023, Japan had had 5,168 investment projects in Vietnam with the total registered capital of more than US$71 billion. Currently, Japan ranks third among 143 countries and territories investing in Vietnam. Japan is increasingly interested in green growth projects in Vietnam.

Nakajima Takeo, Chief Representative of the Japan External Trade Organization (JETRO) in Vietnam, affirmed that efforts to promote green growth will help Vietnam resolve urgent problems, including water quality, air pollution, waste management, recycling, energy efficiency and carbon emissions. Japanese companies in Vietnam are developing projects aimed at reducing carbon dioxide (CO2) emissions, and are contributing to green growth by building solar power systems and promoting digital transformation in agriculture.

There are opportunities for Vietnam to export farm produce to Japan - photo: Vina T&T

According to Tran Quang Huy, Director of the Asia-Africa Market Department of the Ministry of Industry and Trade, the relationship between Vietnam and Japan is important to the development of each country. The Vietnamese economy is open at a high level and is growing rapidly. Vietnam has a young workforce and is trying to enhance the competitiveness of the economy and the effectiveness of industrial production. The Vietnamese and Japanese economies complement each other and can cooperate in the fields of technological innovation, digital transformation and supply chain diversification.

Vietnam has been and continues to be an attractive investment destination for Japanese companies, with advantages in terms of the market size, growth potential, sociopolitical stability, and worker skills.