Vietnam seeks to build stronger economic ties with JETRO

Minister Dien informed Nobuhiko about recent Vietnamese economic development, saying that during the COVID-19 pandemic, many economies around the world endured negative growth, although the country was still able to maintain positive growth.

In line with this, the Vietnamese economy grew by 2.58% last year and is forecast to reach over 7% growth this year. As a result, the nation must continue to co-ordinate alongside other parties in order to maintain production and be an important source of supply for Japan, the region, and the wider world.

Currently, the country is in the process of finalising procedures to join 17 new-generation free trade agreements (FTAs), of which both nations are both members, including agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

The relationship that exists between both sides is very good, Minister Dien said, while suggesting that JETRO move to strengthen co-ordination with relevant Vietnamese agencies to help firms from both sides make the most of preferential commitments of these agreements.

The Ministry of Industry and Trade of Vietnam and JETRO should therefore seek to boost co-operation, especially in the field of supporting industries and industrial digital transformation, he continued.

With regard to trade activities, Minister Dien requested that JETRO support the country in developing traditional trade by developing retail and e-commerce networks, as well as jointly implementing a variety of trade promotion activities.

In response, Nobuhiko said that his organisation has two representative offices in Ho Chi Minh City and Hanoi, both of which welcome many Japanese businesses asking for advice on co-operation with Vietnamese partners.

He went on to add that Japanese companies are highly keen on investing in the Vietnamese market. According to the latest results of a survey of Japanese companies conducted annually by JETRO which targets Japanese enterprises in different countries. Indeed, the number of Japanese firms with plans to expand their business in the Vietnamese market over the next one to two years is 55%, the highest among ASEAN member states.

In relation to Japanese companies, Vietnam represents an indispensable presence in terms of building supply chains. In the future, the challenge is to shift production to products which have a high added value, while also maintaining the strength of manufacturing multi-purpose products. The country is the therefore viewed as the most reliable destination in ASEAN for Japanese businesses to develop production.

Currently, Japanese enterprises based in Vietnam are only able to purchase 37% of input materials for production in the nation, with the rest being imported from ASEAN member states and China in order to then be exported to other countries.

Nobuhiko said that it is crucial for Vietnamese enterprises to increase the application of advanced Japanese technology in order to invest resources for production transformation.

Minister Dien therefore suggested that moving forward, the Trade Promotion Agency under the Ministry of Industry and Trade of Vietnam and JETRO of the Japan Ministry of Economy, Trade and Industry continue to co-operate in performing trade promotion tasks and solutions to achieve the set trade targets.

Moreover, the Vietnamese Minister urged JETRO to focus on supporting both nations’ businesses in further developing relations and expressed confidence that JETRO will back trade promotion and investment and other activities in the lead up to the 50th anniversary of diplomatic relations ahead in 2023.