Over the past half-century, Vietnam and Japan have forged a robust economic partnership. By the end of 2019, Vietnam had become home to over 2,000 Japanese companies actively investing and operating within its borders.
JAPANESE INVESTMENTS IN VIETNAM
Japan stands as a pivotal economic ally for Vietnam, notably as the largest official development assistance (ODA) donor and the second-largest foreign investor, with total investments exceeding a substantial USD 60.2 billion.
As of August 2020, there were a staggering 4,500 valid Japanese-origin projects established in Vietnam. This economic cooperation is also reflected in bilateral trade, with both countries contributing to a trade turnover of nearly USD 40 billion in 2019.
Experts concur that the Vietnamese market holds immense potential for attracting investments from Japanese enterprises, extending beyond large-scale corporations to encompass medium and small-sized businesses.
JAPANESE CORPORATE PRESENCE IN VIETNAM
The long-standing history of collaboration between Japan and Vietnam has fostered an environment where Japanese enterprises thrive. Here are some of the most esteemed Japanese brands highly regarded by Vietnamese consumers:
Acecook Vietnam Joint Stock Company
Acecook Vietnam Joint Stock Company, a pioneer in the instant noodle sector, made its Vietnam debut in 1995. Renowned for its flagship instant noodle product, “Hao Hao,” Acecook has captured the hearts and palates of Vietnamese consumers. By 2018, Acecook had provided approximately 96.4 million Vietnamese individuals with over 5.2 billion meals, commanding a remarkable 50 percent share of the domestic instant noodle market.
Ajinomoto Vietnam Co., Ltd
Founded in 1991, Ajinomoto Vietnam Co., Ltd, with 100 percent Japanese funding of USD 8 million, has emerged as a key player in producing seasonings, sweeteners, cooking oils, and culinary seasonings. Among its well-known products in the Vietnamese market, Ajinomoto Monosodium glutamate reigns supreme. Beyond seasonings, the company has ventured into beverages, processed foods, and nutritional supplements.
Honda Vietnam Company Ltd
Since its inception in Vietnam in 1996, Honda Vietnam Company Ltd has consistently held a prominent position in the motorcycle and automobile industries. With three factories nationwide, Honda produces an impressive average of 2.5 million motorcycles and 23,000 cars each year, addressing the high demand for motorcycles in Vietnam’s urban centers.
Toyota Motor Vietnam Co., Ltd
Established in 1995, Toyota Motor Vietnam Co., Ltd, with 70 percent Japanese funding, has played a significant role in Vietnam’s automobile manufacturing landscape. In 2020, the company achieved a remarkable milestone, selling 695,424 units of automobiles.
Mitsubishi Motors Vietnam Co., Ltd
Formed in 1994 as a distributor for Mitsubishi Motors in Vietnam, Mitsubishi Motors Vietnam Co., Ltd has thrived in the Vietnamese market. Distributing six automobile models, the company sold 3,268 units of automobiles in April 2021.
Panasonic Vietnam Co., Ltd
Panasonic, a familiar name in Vietnam since the 1950s, officially established Panasonic Vietnam Co., Ltd in 1971. With eight subsidiary companies operating in diverse fields, Panasonic offers a range of services and products, with a notable presence in electric household appliances, including washing machines, refrigerators, and air conditioners.
JAPANESE INVESTMENT TRENDS
Japanese businesses have been diversifying their investments in Vietnam. Retail and clothing brands such as Aeon and Uniqlo have entered the Vietnamese market, eyeing opportunities for substantial growth and success.
The collaboration between Vietnam and Japan continues to thrive, marking the evolution of a dynamic and prosperous economic partnership.
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