Japan leads foreign investment in Hung Yen with $6.82 billion

Japanese investment has played a significant role in developing the province’s industrial base, particularly in manufacturing and supporting industries, while strengthening its links with global supply chains.

Japan remains the largest source of foreign investment in Hung Yen - a province located in the Red River Delta, bordering Hanoi to the west - in terms of registered capital, reflecting the province’s longstanding appeal to businesses from one of Asia’s leading industrial economies.

According to the Hung Yen Statistics Office, as of October 27, the province had 1,017 active foreign-invested projects with total registered capital of $19.1 billion. In the first 10 months of the year, Hung Yen attracted 52 new foreign-invested projects, with combined registered capital reaching $930.68 million.

The recent Hung Yen-Japan Business Connection Programme underscored the province’s commitment to deepening ties with Japanese partners. Photo: Tat Dat

Japan ranked first, with 205 projects valued $6.82 billion in total registered capital, accounting for 35.7 per cent of the province’s total foreign direct investment (FDI).

China followed with 398 projects worth $4.88 billion, equivalent to 25.57 per cent, while South Korea ranked third with 216 projects and $2.29 billion in registered capital, accounting for 11.98 per cent.

Combined, investors from Japan, China, and South Korea account for more than 73 per cent of the province’s total registered FDI. Japan, however, stands out not only for the scale of its investment but also for the long-term presence of its businesses across manufacturing, processing, and supporting industries.

The investment relationship between Hung Yen and Japan has developed alongside the expansion of the province’s industrial park (IP) network. Thang Long II IP, developed by leading conglomerate Sumitomo Corporation, has emerged as a key destination for Japanese investors, helping establish a concentrated business community with connections across manufacturing and industrial supply chains.

The IP has attracted 98 foreign-invested projects from Japanese enterprises, with total registered capital of approximately $3.6 billion. The concentration of Japanese manufacturers in a shared industrial location has provided a foundation for production linkages, supplier networks, and supporting services, reinforcing Thang Long IP’s position within Hung Yen’s investment landscape.

Japanese investment in the province has also continued through large-scale projects with high-tech content. One example is the new factory of Nitto Vietnam Co., Ltd. at Thang Long II IP, which was inaugurated on September 11, with total investment of $160 million.

The facility manufactures high-tech products, including polarising materials used in displays for smartphones and automobiles. Its inauguration adds production capacity in the high-tech materials segment and reflects the continued expansion of Japanese manufacturers in Hung Yen.

Expansion creates room for higher-quality investment

Japan’s leading position in Hung Yen’s FDI landscape comes as the province expands its industrial development capacity, upgrades infrastructure, and works to improve its investment environment.

According to the Hung Yen Department of Finance, the province’s IPs enticed approximately $2.4 billion in investment in the first 10 months of 2026, equivalent to 160 per cent of full-year target.

During the period, 73 new projects were recorded, comprising 70 secondary investment projects and three IP infrastructure projects. The secondary projects included 35 foreign-invested projects with total registered capital touching $602 million and 35 domestic projects with registered capital approximating $377.4 million.

The three IP infrastructure projects had combined registered investment capital reaching $377.8 million.

Thang Long II Industrial Park is a major industrial manufacturing hub with a strong presence of Japanese enterprises in Hung Yen province. Photo: Hung Yen

The investment figures reflect continued demand for industrial land and infrastructure in Hung Yen, from both manufacturing enterprises and IP developers.

Expanding the supply of industrial land, improving transport infrastructure, and strengthening regional connectivity will be important to the province’s ability to accommodate larger-scale investment projects in the coming years.

For Japanese investors, these developments offer opportunities to expand operations, particularly in electronics, precision engineering, new materials, supporting industries, and high-tech manufacturing.

These sectors are important not only for generating higher added value but also for creating opportunities to strengthen links between foreign-invested enterprises and domestic suppliers.

To sustain momentum, Hung Yen is focusing on completing industrial infrastructure, improving workforce quality, developing logistics capacity, and securing sufficient energy supplies for production. The province is also accelerating administrative reforms, supporting site clearance, and assisting enterprises throughout project implementation.

At meetings and engagement activities with Japanese businesses, provincial leaders have reaffirmed their commitment to improving the business environment, addressing difficulties facing enterprises and prioritising projects in high-tech manufacturing, electronics, semiconductors, clean industries, and energy-efficient production.

With an established base of Japanese investors and further room for industrial expansion, Japan is expected to remain an important partner in Hung Yen’s investment strategy.

Maintaining relationships with existing investors while attracting new businesses will be key to improving the quality of FDI, deepening industrial linkages, and strengthening the province’s integration into global manufacturing value chains.

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