Vietnam and Japan Enter a New Phase — Prime Minister Calls for Strong Cooperation from Japanese Companies

On March 21, 2026, Vietnamese Prime Minister Pham Minh Chinh held a dialogue with Japanese companies in Hanoi, strongly calling for continued investment and maintained trust. That same month, the "new-era Vietnam-Japan joint initiative" was also officially launched, moving economic cooperation between the two countries into a new phase.

Reorganization of the Vietnam-Japan Joint Initiative

The new-era Vietnam-Japan joint initiative consolidates and reorganizes the previous 11 working groups into five, with a focus on improving the legal system and addressing companies' basic business needs. This reorganization aims to make business environment improvement efforts more efficient and effective. Faster responses are expected to regulatory issues (labor law, taxation, land use rights, etc.) that Japanese companies face in Vietnam.

Japan's Investment in Vietnam — Still Among the Top Ranks

As of the end of February 2026, Japanese companies had 5,738 projects underway in Vietnam, with total registered investment reaching about 79 billion dollars. Japan is the third-largest investor after Singapore and South Korea, having launched 35 new projects in January and February 2026 alone. Japanese companies' presence is expanding across a wide range of fields including real estate, finance, and retail, centered on manufacturing.

What the Prime Minister Asked of Japanese Companies

During the dialogue, Prime Minister Pham Minh Chinh made several specific requests to Japanese companies: first, expanding investment in high-tech fields (semiconductors, AI, green energy); second, strengthening human resource development and technology transfer for the Vietnamese workforce; and third, deepening supply chains within Vietnam. These align with the industrial upgrading strategy the Vietnamese government has set for 2030.

What it means for Japanese companies

A direct dialogue with Japanese companies at the prime minister level reflects the Vietnamese government's positioning of Japan as its top-priority investment partner. This political commitment is likely to be embodied in the form of regulatory incentives and business environment improvements. In fact, the reorganization of the joint initiative is expected to function as a mechanism for institutional improvement that reflects feedback from Japanese companies.

The Big Picture of Vietnam-Japan Relations

Vietnam-Japan relations were upgraded to a "Comprehensive Strategic Partnership" in 2023, and cooperation has deepened across the full spectrum of economics, security, and culture. Japan is also Vietnam's largest ODA (Official Development Assistance) donor, having provided massive support for infrastructure development (highways, ports, urban railways). This strong government-to-government relationship underpins the expansion of private companies into Vietnam.

Points to Watch Going Forward

The near-term focus is on exactly what institutional improvements the results of the new joint initiative will lead to. In particular, progress is expected on issues Japanese companies routinely face, such as simplifying work permit procedures, improving the stability of land use rights, and digitizing tax procedures.

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