According to newswire The Mainichi, the officials are stationed at Japan's embassies in Vietnam, Singapore, Thailand, Indonesia, and India, as well as Japan's consulate general in Ho Chi Minh City.

"It is essential for Japan's economy to take in the vitality of the ASEAN market by backing up Japanese businesses playing a role of expediting regional trades, and by encouraging ASEAN's growth," Japanese Foreign Minister Yoko Kamikawa said.

Japan plans to further increase the number of such officials and build up the network to "comprehensively cover the Global South", comprising developing and emerging countries, by the end of this year, Kamikawa added.

According to a survey released by the Japan External Trade Organisation (JETRO) in May 2024, Vietnam had the second-highest percentage of respondents (24.9 per cent) planning to expand their overseas business, trailing behind the United States. Among large groups planning to expand overseas, Vietnam also ranked second (28.6 per cent), trailing behind India (29.5 per cent). About 24.1 per cent of Japanese small- and medium-sized enterprises also have plans to expand into Vietnam.

The main reason given by 76.9 per cent of respondents for selecting Vietnam for future business expansion was “market size and growth potential", followed by "already have their own offices" (31.6 per cent). Meanwhile, 27.6 per cent of respondents noted "low labour costs, abundant labour force" were also major reasons for expanding in Vietnam.

Takeo Nakajima, chief representative of JETRO in Hanoi, said, "Japanese investment in Vietnam has expanded dramatically. In 2003, investment was $4 billion, accounting for just 9 per cent of Vietnam’s total. Year by year, the value and share have grown, reaching $75 billion and a 16 per cent share in 2023. Japan is one of leading foreign investors for Vietnam, ranking third in amount ($76 billion) and second in number (5,369 projects). In addition, the two countries are binding partners in official development assistance, trade volume, and people-to-people and tourism exchanges."

According to data from the Ministry of Planning and Investment, as of June 2024, Japanese companies had invested $76 billion in Vietnam, trailing behind South Korea and Singapore.

Source: Vietnam Investment Review