Vietnam seeks further co-operation with Japan

Japanese firms check out Vietnamese fruit at a kiosk at the Cooperative Union of Agricultural Consumption. - VNA/VNS Photo Danh Lam

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc made the statement at conference said on Monday.

These sectors had the potential for the two countries to further their bilateral relationship, Loc said at the Vietnam – Japan Economic Dialogue held within the framework of a four-day visit by a Japanese business delegation led by Kobayashi Yoichi, chairman of the Japan – Mekong Economic Cooperation Committee.

Vietnam’s policies for developing its support industry had not reached its full potential, Loc said, adding that support from Japan in sharing experience and technologies played a significant role in promoting the industry, especially in enabling small and medium sized enterprises to engage in the production chain.

Loc said the VCCI was willing to work closely with the Japan Chamber of Commerce and Industry (JCCI) to provide support to Japanese firms seeking Vietnamese partners.

Labour was also a potential field for co-operation between the two countries given the Japanese government’s efforts to reform regulations to attract more foreign workers as well as ensuring the rights of foreign workers, Loc said.

It was estimated that there were around 300,000 Vietnamese working and studying in Japan in 2018, an increase of six times over the past six years, he said.

Loc said the potential for promoting co-operation in tourism between the two countries was significant, adding that Japan was one of the major markets in Vietnam’s tourism development strategy by 2020 with a vision to 2030.

Currently, there are direct flight routes connecting Ha Noi and HCM City to major cities in Japan, including Tokyo, Nagoya, Osaka and Fukuoka.

“Trade and investment promotion together with tourism and cultural activities will be a launch pad to boost co-operation between Japan and Vietnam,” Loc said.

Vietnam also wanted further co-operation with Japan in agriculture.

In order to do so, Vietnam would need to enhance its business climate, improve the capacity of firms, develop economic infrastructure and create mechanisms to facilitate trade and investment, Loc said.

According to Yoichi, Vietnam with a population of 100 million, was an attractive destination for foreign investors, including Japan.

Statistics showed that there were around 1,900 Japanese firms investing in Vietnam with total registered capital of around US$8.6 billion.

Around 70 per cent of them said their business in Vietnam was efficient and wanted to expand investments, compared to the rate of about 50 per cent from other ASEAN countries.

Yoichi also said that companies from many countries were looking to shift their production from China to Japan, which would present significant opportunities to Vietnam’s support industry.

According to Shinichiro Shimizu, director of Japan Airlines, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership would open significant opportunities for member countries, through which bilateral relations between Vietnam and Japan would develop further.

45 years after establishing diplomatic relations, Japan is now the second largest foreign investor, the third largest tourism partner and the fourth largest trade partner of Vietnam.