Nearly 60% of Japanese firms plan to expand reach in Vietnam

Sahashi cited the latest survey by a Japanese government agency showing that 57 percent of Japanese companies intend to expand their reach in Vietnam, the highest among ASEAN countries.

He said the Japanese Chamber of Commerce and Industry in Ho Chi Minh City remains committed to working closely with the Vietnamese government and other stakeholders to help realize the objectives outlined in Resolution 10.

He described Resolution 10, together with Resolution 68 on private sector development, as ‘two wheels’ that will drive Vietnam’s economic growth in the coming years.

“We believe that cooperation between domestic enterprises and foreign-invested companies will be a key driver of Vietnam’s future growth,” he said.

He praised Vietnam’s determination to develop a national program aimed at strengthening domestic suppliers and improving linkages between local firms and foreign investors.

Identifying high-potential suppliers and expanding supply chains will be essential to increasing the country’s industrial competitiveness, he said.

Sahashi hinted at establishing a comprehensive business database and organizing business matching exhibitions through cooperation between the Vietnamese government and FDI enterprises.

He also expected Vietnam to continue improving support policies for small- and medium-sized enterprises, including start-ups.

In addition, he suggested the Southeast Asian nation develop next-generation industries and enhance the country’s role in global value chains.

Sahashi welcomed the government’s policies aimed at supporting workforce training and human resource development projects implemented by foreign-invested companies.

He noted that many Japanese firms currently rely heavily on internal training programs, but rising training costs and increasing employee turnover have hindered their training expansion.

He urged the government to consider tax incentives for corporate investments in workforce training, education, and equipment for vocational schools.

Foreign investors recommend additional policy reforms

Addressing the conference virtually, Dragon Capital chairman Dominic Scriven said that Resolution 10 plays a key role in the development of the international investment community.

He suggested that the government introduce incentives encouraging foreign-invested enterprises to retain profits in Vietnam rather than repatriating them overseas.

Among his recommendations was a policy allowing foreign-invested companies to earn interest on foreign currency deposits held within Vietnam’s banking system.

Scriven also proposed reforms to support Vietnam’s ambition of upgrading its capital market to emerging market status by 2030.

These included introducing more flexible foreign exchange policies for overseas investors and reviewing regulations that prohibit companies with accumulated losses from listing on the stock exchange.

He argued that the existing listing rules present a substantial barrier for companies operating in the digital economy and artificial intelligence sectors.

In addition, Scriven recommended accelerating the development of financial centers in Ho Chi Minh City and Da Nang City.

Michael Kokalari, chief economist at VinaCapital, said Vietnam should continue pursuing large-scale infrastructure projects to maintain its attractiveness as an investment destination.

He noted that such projects would require significant financial resources, saying that VinaCapital, together with other investors, stands ready to support the country’s infrastructure development.