Vietnam, Japan see 'strong collaboration prospects in developing green, eco-friendly products'

Vietnam and Japan have vast potential for cooperation in the development of green and environmentally friendly products, said general secretary of the ASEAN-Japan Center (AJC) Kunihiko Hirabayashi.

Hirabayashi made the remark at the Vietnam-Japan Economic Cooperation and Trade Conference, organized by the Trade Promotion Agency of Vietnam, the Vietnam Trade Office in Japan under the Ministry of Industry and Trade, and the ASEAN-Japan Center, in Tokyo last Friday. The event brought together policymakers and business leaders to discuss expanding economic and trade relations between the two countries.

Strong trade ties and strategic partnership

According to Bui Quang Hung, deputy director of the Trade Promotion Agency, Vietnam has deeply integrated into the global economy, participating in 17 free trade agreements (FTAs) with over 60 countries and territories. These agreements cover approximately 60% of global GDP. Vietnam has also established comprehensive strategic or strategic partnerships with key global players, including Japan.

Japan has long been one of Vietnam’s most significant economic partners, with bilateral trade growing steadily in recent years. Economic ties have been further strengthened through a series of strategic initiatives and high-level dialogues.

Key areas for cooperation

Hirabayashi highlighted several promising areas for Vietnam-Japan collaboration such as green and eco-friendly products, national branding & co-branding initiatives, supply chain expansion and, healthcare and pharmaceuticals.

He also praised Vietnam as a highly attractive destination for Japanese investors - not only for its business environment but also for its rich culture, friendly population, diverse cuisine, and improving infrastructure and education system.

Vietnam’s trade and investment advantages

At the event, Nguyen Thu Thuy, deputy director of the Center for Trade and Investment Promotion, emphasized Vietnam’s growing attractiveness in global supply chain shifts.

She noted that Vietnam’s strategic location as a gateway to Southeast Asia, its modern seaport system, abundant and cost-effective labor force, and its wide array of high-quality export products provide a competitive advantage for trade and investment.

To support this growth, the Vietnamese government is implementing administrative reforms and investing heavily in infrastructure. It is also rolling out a broad range of trade promotion programs, offering technical support and market intelligence to help businesses expand.

Citing a recent survey by the Japan External Trade Organization (Jetro), Thuy revealed that over 60% of Japanese companies plan to expand their operations in Vietnam, confirming the country’s appeal as a regional business hub.

Vietnam is now more selective and strategic in attracting foreign investment, focusing on high-quality, high-tech, and environmentally sustainable projects. The government prioritizes investments that offer technological advancement, transfer of expertise, and integration into global supply and value chains.

Bilateral trade overview

According to data from Vietnam Customs, total trade between Vietnam and Japan reached $46.2 billion in 2024. In the first quarter of 2025 alone, the figure was approximately $12 billion. Vietnam's key exports to Japan include agricultural product like rice; coffee; cashew nuts; seafood; industrial goods like textiles, footwear, wooden furniture; and electronics, including components and machinery.

In return, Vietnam imports high-tech machinery, automobiles, parts, and industrial materials from Japan. The two countries’ trade structures are largely complementary, minimizing direct competition.

Japan remains one of Vietnam’s top three sources of FDI in 2024 and continues to be a leading partner in trade, tourism, and development cooperation.