Japanese investment in Vietnam

As of April 20, 2021, Japan has 4,690 valid projects with a total registered investment capital of 62.9 billion USD. Japan is currently ranked 2nd after South Korea (71.6 billion USD) out of 140 countries and territories investing in Vietnam.

Particularly in the first 4 months of 2021, Japan ranked 2nd out of 67 countries and territories investing in Vietnam, with a total investment capital of over 2.5 billion USD, just behind Singapore (4.8 billion USD), followed by Korea, China, Hong Kong, the United States, etc.

By sectors

Japan's foreign investors have invested in 19 sectors, in which the top is the processing and manufacturing industry ($40.6 billion, accounting for 64.6% of the total registered investment capital); production and distribution of electricity, gas, water, air conditioners (7.4 billion USD, accounting for 11.8%); field Real estate business (7 billion USD, accounting for 11.2%); The rest are other areas.

By areas:

Japan has investment projects in 57/63 provinces, the most is Thanh Hoa with a total investment capital of over 12.5 billion USD, Hanoi ranks second with a total investment capital of 10.6 billion USD, followed by Binh Duong (5.8 billion USD), TP. Ho Chi Minh City (5.1 billion USD), Dong Nai (4.1 billion USD).

Some major Japanese projects in Vietnam:

- Nghi Son Refinery and Petrochemical Project with a total registered capital of 9 billion USD (Japanese capital accounts for 39.8%, Kuwait 35.1%, Vietnam 25.1%);

- Smart city project in Dong Anh district, Hanoi with total registered capital of 4.1 billion USD;

- Nghi Son 2 BOT Thermal Power Plant Project in Thanh Hoa Province (US$2.8 billion);

- Van Phong 1 BOT thermal power plant project in Khanh Hoa province (2.6 billion USD);

- Block B - O Mon gas pipeline project in Kien Giang province (US$1.3 billion);

- Tokyu Binh Duong urban area project in Binh Duong province (US$1.2 billion);

1

Investment of Kansai region in Vietnam:

Investment of the Kansai region in Vietnam accounts for about 30% of the total investment of Japan in Vietnam. Up to now, there are 784 projects of the Kansai region (Osaka, Kyoto, Nara, Hyogo, Wakayama, Shiga) and some provinces (Fukui, Toyama, Ishikawa) invested in Vietnam with a total investment capital of more than 9 billion USD. The whole of Japan has 4,624 projects with more than 62 billion USD).

In the field of investment: Besides traditional industries such as manufacturing industry, production of components and accessories, agriculture, seafood processing. Investments in services and retail sector, finance and indirect investments also increased.

In terms of investment areas: mainly concentrated in big cities such as Ho Chi Minh City, Hanoi, Da Nang, Hue and some provinces adjacent to big cities such as Binh Duong, Long An, Can Tho, Dong Nai, Vinh Phuc, Hai Duong, Hung Yen Ha Nam...

2

A number of special policies and mechanisms to create favorable conditions for Japanese enterprises to invest and do business in Vietnam

- "Vietnam's industrialization strategy within the framework of Vietnam-Japan cooperation towards 2020, vision to 2030" focuses on 6 industries: (1) Electronics; (2) Agricultural machinery; (3) Processing agricultural and aquatic products; (4) Shipbuilding; (5) Environmental and energy saving; (6) Manufacture of automobiles and auto parts.

3

4

2. Vietnam - Japan Joint Initiative (SKCVN) is a special dialogue mechanism between agencies of the Government of Vietnam and the Japanese business community to solve problems, absorb proposals, encourage The Japanese side's proposal on the process of amending and perfecting Vietnam's legal policies on business and investment. The meeting was co-chaired by the Minister of Planning and Investment, the Ambassador of Japan to Vietnam and the two co-chairs of the Vietnam Economic Committee, the Japan Economic Federation with the participation of representatives of the Ministries such as: Industry and Trade, Finance, Foreign Affairs, Labor, Invalids and Social Affairs, Science and Technology, Natural Resources and Environment, State Bank...

SKCVN was implemented since April 2003 and has completed 07 phases, 17 years of implementation. The Vietnam - Japan Joint Initiative affirms that it is a special and effective form of cooperation between Vietnam and Japan, bringing many benefits to Japanese enterprises investing and doing business in Vietnam as well as actively supporting Vietnam in improving the business investment environment, strongly attracting foreign investment. Based on the results achieved in 7 phases, the two sides are continuing to implement phase 8 of the Vietnam - Japan Joint Initiative.

5

(Viet Nam - Japan Joint Initiative phases VII)

Vietnam's investment in Japan

As of April 20, 2021, Vietnam has 90 valid investment projects in Japan with a total registered investment capital of 22.6 million USD, accounting for 0.1% of total registered investment capital. accumulated abroad of Vietnam. Japan is currently ranked 34th out of 78 countries and territories that Vietnam invests abroad.

Vietnam invests in Japan in 10 industries, in which mainly focuses on information technology (7.6 million USD); Professional activities, science and technology (5.27 million USD); Wholesale and retail sector; repairing cars, motorbikes, motorbikes (5.1 million USD)…

In the first 4 months of 2021, Vietnam has invested in 15 countries and territories, of which Japan ranks 14th with 01 new investment project, registered capital is 47,950 USD, accounting for only 0.01 % of total newly registered and adjusted capital in the period.

*Source: Foreign Investment Agency, Ministry of Planning and Investment./.

(June 2021)