Japanese FDI supports green transition in Việt Nam's manufacturing sector

Japanese FDI supports green transition in Việt Nam's manufacturing sector

Việt Nam has become an important market and strategic manufacturing base in Southeast Asia for Japanese investors.

A worker checking products at a plant of R Technical Research Vietnam Co., Ltd., in Hoà Bình Commune, Phú Thọ Province. — VNS Photo Ly Ly Cao

Japanese Foreign Direct Investment (FDI) is strengthening Việt Nam's manufacturing capacity and accelerating the green transition, as more Japanese companies expand production and adopt sustainable industrial solutions.

Việt Nam has become an important market and strategic manufacturing base in Southeast Asia for Japanese investors, reflecting their long-term confidence in the country’s economic potential and sustainable growth prospects.

Investment cooperation has been a key pillar of Việt Nam-Japan economic ties. According to the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, Japan has more than 5,800 active investment projects in Việt Nam, with total registered capital exceeding US$81 billion.

Free trade agreements (FTAs) have also created favourable conditions for businesses in both countries through tariff reductions, rules of origin, and trade facilitation, opening up opportunities for deeper participation in regional production networks and supply chains.

Major Japanese companies, including Honda, Panasonic, Kao Vietnam and Sumitomo, have maintained and expanded their operations in Việt Nam. Meanwhile, new Japanese investment is flowing into industrial parks, supporting greener manufacturing and the adoption of more sustainable production solutions.

A recent example is Japanese group Oji’s launch of construction of a new aseptic carton packaging factory under its Oji Liquid Pak (OLP) brand. The project, with an investment of $110 million, is located in Long Thanh High-Tech Park in Đồng Nai Province.

The investment demonstrates Oji Liquid Pak’s long-term commitment to Việt Nam and reinforces the country’s role as a strategic manufacturing and supply hub for the group in Southeast Asia.

It is also expected to support the region’s shift towards circular packaging solutions that meet evolving policy requirements.

Nguyễn Quốc An, deputy head of the Đồng Nai Industrial and Economic Zones Authority (DNIEZA), said large-scale projects like this would contribute to local industrial development, strengthen domestic production capacity and help Vietnamese businesses participate more deeply in regional supply chains.

The authority pledged to support investors throughout project implementation, provide timely guidance and coordinate efforts to resolve difficulties so that projects can proceed in line with regulations and begin operations as soon as possible.

Oji Liquid Pak General Director Kestutis Sliuzas said manufacturing industries, including packaging, were moving towards new standards that combine state-of-the-art recyclable materials and packaging, efficiency, and food safety.

The new factory will combine food packaging production with research and development, technical services, and the installation and maintenance of Japanese machinery and equipment. These activities are expected to contribute to a modern industrial environment with higher quality and added value.

Japanese investment also covers research and development in natural sciences, machinery repair and maintenance, equipment installation, and the import, export, and distribution of goods in accordance with Vietnamese law.

Trần Việt Hà, deputy head of the HCM City Export Processing and Industrial Zones Authority (HEPZA), said the authority was working to help investors start projects sooner after registration and reduce procedures related to planning and construction.

HEPZA aims to resolve matters within its authority directly and coordinate with other agencies on issues requiring inter-agency cooperation. It is also shifting from a focus on administrative procedures to monitoring projects throughout their life cycle, from investment preparation to operation.

These efforts align with Politburo Resolution No. 10-NQ/TW, dated June 8, 2026, on developing the foreign-invested economy. The resolution shifts Việt Nam's investment attraction strategy towards quality rather than quantity, prioritising high technology, innovation, workforce development and technology transfer.

The policy direction reflects Việt Nam's ambition to move beyond labour-intensive assembly towards becoming a technology-driven investment destination that generates higher added value and supports sustainable industrial growth.

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