According to the Japan External Trade Organization (JETRO)’s 2025 survey on Japanese businesses investing abroad, Vietnam remains an attractive destination. This marks the 38th year JETRO has conducted this survey since 1987.
Key survey categories include: Business Profit Outlook, Future Business Development, Expansion Strategy, Impact of U.S. Tariff Policies, Investment Environment Appeal and Challenges, Competition, Procurement and Exports, Employment Environment, and Wages.
Domestic Procurement Reaches Record High
The survey reveals that Vietnam’s domestic procurement rate hit 38.1%, a 1.5-point increase from the previous year, matching Malaysia’s 1.6-point rise.
Procurement from Vietnamese businesses accounted for 18.3% of total procurement, up 2.6 points year-on-year. This rate, which hovered around 15% from 2016–2024, surpassed 18% for the first time since the survey began, marking an all-time high.
However, JETRO’s survey also highlights challenges in local procurement. Notably, 58.9% of businesses cited a lack of local raw material suppliers, while 51.4% found domestic suppliers’ quality and technical capabilities insufficient. Though these figures have decreased, they remain significant barriers.
Ms. Cong Tang Ton Nu Thuy Trang, Vice Chairwoman of the Vietnam Electronic Industries Association (VEIA), noted that Vietnamese businesses, particularly in supporting industries and automation, face three main challenges.
First, there’s a gap in standards and management systems. Many Vietnamese firms possess strong technical skills but lack robust systems for quality control, traceability, ESG compliance, and international standards—key requirements for multinational corporations.
Second, becoming a Tier 1 supplier to foreign-invested enterprises (FIEs) demands significant investment in machinery, R&D, and process standardization. Vietnamese businesses often struggle with long-term capital, high financial costs, and lack mechanisms for sustained partnerships.
Third, there’s a lack of meaningful connections between FIEs and local businesses. Many Vietnamese firms aren’t involved early in design, technical standards, or production planning, making it difficult to meet immediate requirements.
“However, I believe Vietnamese businesses have the capability. They need more time, trust, and genuine support to grow within the global supply chain,” Ms. Trang emphasized.
 Ms. Cong Tang Ton Nu Thuy Trang at Ito Vietnam’s automated production line. Photo: T.TRANG
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Aspiring to Build a Genuine “Make in Vietnam” Ecosystem
Notably, JETRO’s survey shows that 49.4% of Japanese businesses plan to expand local procurement in the next one to two years, a 1.5-point drop from last year but with no significant trend change.
Mr. Fan Guofeng, General Director of AQUA Vietnam, shared that the company’s current localization rate exceeds 50%, nearing 60%. Long-term goals aim for 100% localization, with an initial target of 75%.
To achieve this, AQUA is encouraging existing regional suppliers to invest directly in Vietnam. The company is also integrating Vietnamese suppliers into its supply chain, particularly for core home appliance components.
Similarly, Ito Group’s representative in Vietnam stated that 100% of their designs are by Vietnamese engineers, and over 80% of components are sourced locally. All core software and precision mechanics are produced in-house.
“We aim not only to be a ‘Made in Vietnam’ company but also to foster a Vietnamese business ecosystem capable of competing globally,” said Ito Vietnam’s representative.
The company is actively expanding its domestic supplier network, focusing on precision machining and automation support. Ito Vietnam prioritizes co-development partnerships over cost-cutting, sharing technical standards and supporting process improvements, even accepting initial “learning costs” for potential partners.
They believe a sustainable supply chain requires quality, transparency, and social responsibility.
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Vietnam’s Investment Environment Offers Significant Advantages
According to AQUA Vietnam’s leadership, Vietnam is an open market with attractive policies for FIEs. Compared to regional peers, Vietnam is among the fastest-growing nations with the most favorable investment policies.
AQUA Vietnam highlights two key factors for sustainable growth: workforce and infrastructure. The 15-year free education policy has produced a skilled workforce, ensuring product quality. Additionally, new airport construction in Dong Nai and efficient seaports and logistics services optimize operational costs.
“Lower transportation costs enhance product competitiveness, making quality products more accessible to consumers,” shared AQUA Vietnam’s leadership.
JETRO’s survey confirms Vietnam’s advantages over ASEAN peers in market size, labor costs, and political stability. Notably, 56.9% of Japanese businesses in Vietnam plan to expand operations in the next one to two years, leading ASEAN for the second consecutive year in expansion ambitions.
TÚ UYÊN
– 17:50 29/01/2026
