Southeast Asia Information Port (www.dnyxxg.com) – Despite ongoing obstacles related to systems, procedures, and human resources, the investment environment and business prospects for Japanese companies in Vietnam remain generally positive. This is a key finding reflected in the "2025 Survey on the Status of Japanese Companies' Overseas Investment," released by the Japan External Trade Organization (JETRO) on the afternoon of January 26.
Okabe Mitsutoshi, Chief Representative of the JETRO Ho Chi Minh City Office, stated that the survey results show that 67.5% of Japanese companies operating in Vietnam are expected to be profitable by 2025, an increase of 3.4 percentage points from the previous year, marking the highest level since 2009. This is also the first time in five years that this percentage has exceeded the ASEAN average. Meanwhile, the proportion of companies expecting losses has decreased to 17.6%, indicating a significant improvement in business conditions.
In the manufacturing sector, the proportion of profitable companies reached 74.1%, with a substantial decrease in the proportion of loss-making companies. The paper, wood products, electrical and electronic components, and metal industries showed particularly significant improvements in profitability. In the non-manufacturing sector, the profitability rate was 61.2%, with significant improvements seen in real estate, education, and healthcare. However, the profitability rate remained below 50% in sectors such as transportation equipment, energy, tourism, and retail.
Looking ahead to 2026, nearly half of the surveyed companies expect profits to continue improving. Over 56% of Japanese companies in Vietnam indicated they plan to expand their operations within the next one to two years, potentially making Vietnam the top-ranked ASEAN country in this indicator for the second consecutive year.
JETRO noted that the main advantages of Vietnam's investment environment continue to be highly valued by Japanese companies, including market size and growth potential, labor costs, and political and social stability. However, complex administrative procedures, an underdeveloped legal system, rising labor costs, and recruitment difficulties remain major risk factors.
The survey results show that Japanese investment in Vietnam is projected to reach approximately US$3 billion in 2025, representing a year-on-year increase of nearly 20%, primarily concentrated in the commercial, technology park, and automotive industries. Mitsutori Okabe emphasized that Vietnam remains an important investment destination for Japanese companies in ASEAN, but to maintain its attractiveness in the long term, it is necessary to substantially improve administrative procedures, enhance transparency, and effectively address human resource issues. (End)
