Japan is the biggest foreign investor in Vietnam in terms of pledged investment capital in January-August.
In the first eight months of this year, pledged investment from Japanese companies reached $7 billion, nearly 29 percent of the total foreign investment that came from 97 countries and territories, according to the Ministry of Planning and Investment.
Japanese investors back multiple projects across sectors, including agriculture, consumer goods, finance, and real estate. Their investments range from millions to billions of dollars.
For instance, Japan’s Sumitomo and Vietnam’s private firm BRG signed a deal earlier this year to develop a $4.14 billion smart city project in Hanoi’s Dong Anh District.
They hope to commence work on the first phase of the 272-hectares project late this year.
Up to 70 percent of Japanese firms in Vietnam plan to expand their business in the country, as most of them believe that revenue will continue to increase, according to a recent survey by the Japan External Trade Organization (JETRO).
Over 65 percent of surveyed firms said they have been profitable in Vietnam.
Japan was the fourth largest trading partner of Vietnam last year, with a total turnover of almost $34 billion, up 13.8 percent from 2016, according to Vietnam Customs.
