In late 2013, Japanese PM Shinzo Abe promised US$970 million in official development assistance (ODA) to Vietnam during a conference with his counterpart Nguyen Tuan Dung, making the country Vietnam’s largest ODA sponsor with around US$20 billion committed between 1993 and 2012. Japan is Vietnam’s largest foreign in
In late 2013, Japanese PM Shinzo Abe promised US$970 million in official development assistance (ODA) to Vietnam during a conference with his counterpart Nguyen Tuan Dung, making the country Vietnam's largest ODA sponsor with around US$20 billion committed between 1993 and 2012.
Japan is Vietnam's largest foreign investor and 3rd largest trade partner, with their bilateral trade value reaching more than an estimated $22.9 trillion in the first 11 months of 2013.
With relatively cheap labor and growth markets, Vietnam currently ranks second in ASEAN in terms of attracting Japanese investors.
“Until recently, many Japanese manufacturers were looking to China, but it is more and more difficult because the currency is strong and wage costs are rising rapidly,” says Mr. Hirokazu Yamaoka, JETRO Vietnam's chief representative, in an interview with the Financial Times. “There are also political issues between Japan and China.”
In contrast, it is commonly cited that Vietnam serves as more than a long-term investment destination but also as a trusted friend and companion.
There is an increasing trend among Japanese companies to hold Vietnam as an important strategic location for a wide range of investment projects that cover fields such as urban development, pharmaceutical manufacturing and value-added office automation equipment manufacturing.
“Japanese companies have a more long-term view,” says Shoji Kono, a corporate vice-president at Tamron, which is currently planning a hefty investment in Ho Chi Minh City. “We accept the situation, consider the best way forward, and don't complain to anybody.”