Hung Yen strengthens appeal to Japanese investors

Japan has long held a central place in Hung Yen’s foreign investment landscape. Increasingly, however, the relationship is being reframed not merely through capital inflows, but through long-term industrial integration.

Speaking at the programme, Secretary of Hung Yen Party Committee Pham Quang Ngoc, said, "Japan is currently the province’s largest foreign investor, with 190 projects and nearly $6.5 billion in registered capital. Among the province’s most notable investment anchors is Thang Long II Industrial Park, developed by Japan’s Sumitomo Corporation, which has attracted 98 Japanese-invested projects worth approximately $3.6 billion. Over time, the industrial park has evolved into one of northern Vietnam’s most concentrated Japanese manufacturing ecosystems."

Beyond industrial investment, cooperation between Hung Yen and Japan has widened into education, culture, sports, and people-to-people exchanges. Since 2015, the province has maintained partnerships with Kanagawa Prefecture and Nikaho City while regularly organising business matchmaking and investment promotion activities to facilitate Japanese expansion.

Following the administrative merger with Thai Binh province in July 2025, Hung Yen now possesses a considerably expanded development footprint, opening new opportunities for industrial growth, logistics, and marine economic development.

The newly enlarged province spans over 2,500 square kilometres with a population exceeding 3.5 million and sits strategically within the Hanoi–Haiphong–Quang Ninh growth corridor. This positioning is increasingly reinforcing Hung Yen’s comparative advantages in manufacturing, urban expansion, and regional logistics integration.

Connectivity improvements are adding to the province’s appeal. Enhanced access to Noi Bai, Gia Binh, and Cat Bi international airports, alongside Haiphong’s deep-water seaport network, is strengthening Hung Yen’s prospects of integrating more deeply into regional production and supply chains–an increasingly important consideration for Japanese manufacturers seeking supply chain resilience and operational efficiency.

Economic indicators have also reinforced investor confidence. Between 2021 and 2025, Hung Yen recorded average annual growth of around 9.17 per cent, while growth in 2025 reached 8.78 per cent, placing the province among the country’s leading performers. In the first quarter of 2026 alone, growth accelerated to 10.43 per cent, ranking fourth nationwide. Budget revenues rose 53 per cent and total social investment increased 22 per cent on-year, underscoring a period of strong economic momentum.

Building on this momentum, the province is recalibrating its investment strategy towards high-tech industries, digital transformation, innovation, green transition, and environmentally sustainable projects capable of delivering higher added value and deeper participation in global supply chains.

Deputy Minister of Foreign Affairs Le Anh Tuan described the programme as an important mechanism for operationalising economic, trade, investment, and people-to-people cooperation under the Vietnam–Japan Comprehensive Strategic Partnership framework. According to him, the event–held shortly after Japanese Prime Minister Sanae Takaichi’s official visit to Vietnam–creates favourable conditions for transforming high-level commitments into practical investment projects.

Investors seek stronger implementation

Despite growing optimism, Japanese investors made clear that long-term investment confidence will depend increasingly on implementation quality rather than preferential policies alone.

Japanese Ambassador to Vietnam Ito Naoki said, "Hung Yen’s geographical advantages, particularly its proximity to Hanoi and convenient access to Haiphong Port–factors continue to strengthen the province’s attractiveness as a manufacturing base. Japanese manufacturers are increasingly expanding in sectors such as electronics, precision engineering, and circuit boards. Examples include Mektec, which manufactures smartphone circuit boards, and HOYA, which is investing approximately ¥50 billion ($344.8 million) in hard disk drive component production."

Japanese energy firms are also exploring major investment opportunities in the former Thai Binh area, including a 1.5GW power project involving Tokyo Gas, Kyuden International, and local partner TTVN.

"There are several areas requiring improvement. Maintaining competitiveness will require stronger dialogue with Japanese businesses, solutions to labour shortages, better housing conditions for workers and foreign professionals, and enhanced connectivity between Hanoi, Haiphong, and coastal economic zones," Naoki said.

Japanese Ambassador to Vietnam Ito Naoki

Investors increasingly assess destinations through three critical dimensions: administrative efficiency, workforce quality, and consistency in government support.

Tsuchihashi, chairman of the Japanese Chamber of Commerce and Industry in Vietnam and representative of Meiko Electronics, said, "Transparent, predictable, and timely administrative procedures are essential for large-scale industrial investments. Equally important are workforce availability, technical talent quality, logistics systems, and stable electricity supply. Investors also expect local authorities to maintain responsive engagement throughout project implementation to address operational bottlenecks as they arise."

For many Japanese businesses, investment attractiveness today is shaped less by tax incentives than by regulatory predictability, policy consistency, and the quality of government-business interaction–factors increasingly decisive in regional investment competition.

Platform for long-term cooperation

According to Ozasa Haruhiko, chief representative of the Japan External Trade Organization (JETRO) in Hanoi, Hung Yen had attracted more than 200 Japanese investment projects worth over $6 billion as of April, placing it among northern Vietnam’s leading destinations for Japanese capital. Manufacturing accounts for approximately 85 per cent of projects, reinforcing the province’s status as a major production hub for Japanese manufacturers.

JETRO’s 2025 survey indicated that 57 per cent of Japanese businesses operating in Vietnam plan to expand operations–the highest proportion in ASEAN for the second consecutive year–suggesting continued investment opportunities for localities capable of meeting rising expectations.

Nguyen Manh Quyen, Chairman of Hung Yen People’s Committee, said, "The province reaffirmed commitment to improving the business environment and accompanying investors through a spirit of 'listening, understanding, partnership, and shared development.' Following the provincial merger, Hung Yen has also revised its 2021–2030 development master plan, with a vision to 2050, establishing three strategic development zones focused respectively on high-tech industries, urban services and cultural development, and marine economy and large-scale agriculture."

With clearer strategic priorities, improving connectivity, and growing industrial depth, Hung Yen is increasingly positioning itself not simply as a destination for foreign investment, but as a long-term partner in Japanese businesses’ regional expansion strategy.

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