Vietnamese firms remain underrepresented in FDI supply chains: Japanese exec

Vietnamese companies remain limited participants in the supply chains of foreign-invested manufacturers despite growing demand for local sourcing, the head of the Japanese Chamber of Commerce and Industry in Vietnam (JCCI) said on Saturday, calling for stronger support to develop domestic suppliers and skilled workers.

Speaking at a government conference with the business community, Tsuchibashi Akito, chairman of JCCI and general director of Meiko Electronics Vietnam, said Japanese companies support Vietnam's strategy of attracting high-quality investment, promoting technology transfer, developing human resources, and building stronger domestic enterprises.

From the perspective of the Japanese business community, Tsuchibashi outlined three recommendations: developing a highly skilled workforce, increasing the participation of Vietnamese companies in global supply chains, and maintaining a transparent, stable and predictable business environment.

He said many Japanese companies operating in Vietnam are seeking to increase local procurement, but the participation of Vietnamese firms in their supply chains remains limited.

Opportunities exist for Vietnamese businesses in areas including materials, components, precision manufacturing, and specialized industrial services. To seize those opportunities, Vietnam needs to develop both large-scale suppliers and a new generation of small and medium-sized enterprises (SMEs) and startups capable of joining global supply chains, the JCCI chairman said.

Vietnam has been highly successful in attracting large-scale foreign direct investment. Going forward, the country needs to foster more Vietnamese companies that can grow into partners within global supply chains, Tsuchibashi noted.

He urged the government to continue supporting supplier development, expand business matchmaking opportunities, promote technical cooperation and joint development projects, and help domestic companies upgrade technology, obtain international quality certifications, strengthen research and development, train workers, and improve productivity.

Shortage of experienced technical specialists

Tsuchibashi also highlighted concerns over the availability of skilled workers for high value-added industries, particularly electronics and semiconductors.

He said the competitiveness of Vietnam's electronics and semiconductor industries would depend directly on the quality of the workforce. While Japanese companies have invested heavily in training, developing talent requires closer cooperation among businesses, universities, vocational schools, and the government.

JCCI recommended expanding training centers for electronics and semiconductor technologies, increasing the supply of skilled technicians, maintenance engineers and quality management specialists, and broadening overseas technical training programs.

In the coming years, the greatest challenge may not be the number of engineers, but the shortage of experienced technical specialists, maintenance experts, and quality management professionals," Tsuchibashi said.

Beyond workforce development and supply chains, JCCI called on Vietnam to preserve a transparent, predictable and business-friendly investment climate. As government policies are translated into laws and regulations, the chamber urged authorities to strengthen consultations with the business community through public-private dialogue and broader stakeholder engagement.

Korean businesses seek more consistent policy implementation

At the conference, Ko Tae Yeon, chairman of the Korea Chamber of Business in Vietnam (KoCham), said foreign-invested companies continued to expand investment despite global economic uncertainty, strengthening domestic supply chains, transferring technology and management expertise, and creating jobs.

He urged Vietnam to ensure policy stability and predictability while improving consistency and effectiveness in implementation.

Ko Tae Yeon said the Vietnamese government had made significant progress in administrative reform and digital transformation, but businesses continued to face challenges because policies were implemented inconsistently across ministries and applied differently by local authorities.

Among the issues raised by Korean businesses were lengthy customs clearance procedures, delays in value-added tax refunds, labor shortages in some industrial parks, and complex environmental regulations.

KoCham also called on the government to continue supporting industrial upgrading, technology adoption, supplier development, workforce training, and stronger linkages between domestic companies and foreign-invested enterprises.

Those measures would increase domestic value creation and strengthen Vietnam's position in global supply chains, he noted.

The Korean business community hopes for a transparent, stable business environment and consistent policy implementation, which will provide confidence for companies to make long-term investments in Vietnam, Ko Tae Yeon said.