Prof. Tran Van Tho, who is also member of the Economic Advisory Group for Prime Minister Nguyen Xuan Phuc, said similarities in culture between the two countries also help promote their economic cooperation.
The Vietnam-Japan Joint Initiate, which is on the sixth phase, is focusing on how to increase labour productivity, he said, adding that the initiative shows Japan’s perseverance in helping Vietnam improve its business climate.
Japan became the largest foreign investor in Vietnam in 2017 with over 2,500 Japanese companies operating in the Southeast Asian country.
Japan’s increasing investment in Vietnam is a good signal for Vietnam’s economy in the context that investments from developed countries in Vietnam remain low, Tho noted.
In the coming time, Japan’s investment in Vietnam is forecast to be maintained in the field of manufacturing, he added, adding that Vietnam should encourage Japanese firms to pour money into food and support industries.
According to the expert, the country also needs to make adjustments to policies related to foreign investment attraction and bidding.
Priority should be given to luring reliable investment sources and environmentally friendly projects using modern technologies, Tho stressed.
Regarding investment form, Tho said Vietnam should encourage the formation of joint-ventures between foreign and domestic firms, thus improving domestic enterprises’ capacity and helping them join production chains.
Apart from Japan, China has been also one of Asian countries increasing its investment in Vietnam. The country became the fourth largest foreign investor in Vietnam in 2017.
China’s strong development and increasing investment abroad will also impact greatly on Vietnam’s economy in 2018, Tho said.