Vietnam expects stronger Japanese investment inflows as local-level cooperation between the two countries deepens, following renewed commitments made at last week's forum.

Overview of the Vietnam-Japan Local Cooperation Forum in Hue city. Photo: chinhphu.vn

The forum, organised by the Ministry of Foreign Affairs together with Hue city and the Japanese Embassy in Vietnam, brought together Vietnamese and Japanese officials. PM Hung said the two countries needed to fully leverage their potential, opportunities, and advantages to complement one another, foster mutual growth, and become partners for high-quality growth and strategic autonomy.

He outlined strategic directions to deepen and strengthen the substantive effectiveness of the Vietnam-Japan Comprehensive Strategic Partnership in this new phase of development.

Deepening the strategic partnership

PM Hung called on both nations to intensify cooperation grounded in science and technology, innovation, and digital transformation, and to explore joint models in digital technology, AI, and semiconductors; smart cities and sustainable agriculture; and start-up incubators and research and development (R&D) centres.

The Japanese side shared its experience in helping Vietnamese localities and enterprises build innovation ecosystems, digitalise local government operations, and strengthen policymaking and governance in emerging sectors such as AI, semiconductors, quantum technology, and satellite technology.

PM Hung urged localities from both countries to identify priority sectors with complementary potential and propose specific, feasible cooperation projects for immediate implementation.

Aiming for the goals of "More jobs – Higher incomes – Better skills," he said the forum must serve as a genuine opportunity for governments and local authorities on both sides to listen to each other, enact preferential policies, and create a favourable environment for businesses to connect and invest.

As of late July, Japanese investors had 5,840 valid projects registered in Vietnam worth $80.4 billion, ranking third among 153 countries and territories investing in the country.

He also called for cultural exchange and mutual understanding to serve as the foundation for long-term cooperation, with a focus on developing tourism products, opening new air routes between localities, enhancing people-to-people exchanges, boosting heritage and cultural industries, and strengthening cooperation on green transition, climate change response, and disaster prevention.

"Building upon the foundation of friendly cooperation and the strategic direction set by the high-level leadership of both countries, I urge localities and businesses on both sides to take the lead, embrace a spirit of innovation, and boldly transform their mindsets and methods of cooperation," PM Hung said.

"We must shift the model from mere 'cooperation' to 'co-creation,' and from 'technology transfer' to 'joint development.' Japanese enterprises should not view Vietnam solely as a consumer market or a production base; instead, they should regard it as a hub for manufacturing, innovation, and sustainable supply chain connectivity that serves the interests of Japan's own localities and economy," he said.

Prime Minister Le Minh Hung meets with a delegation of Japanese local representatives. Photo: chinhphu.vn

Substantive cooperation pillar

The 2026 Vietnam-Japan Local Cooperation Forum "Building a digital, green, and sustainable future – From strategic commitments to substantive action", aims to operationalise the commitments made by PM Hung and his Japanese counterpart Takaichi Sanae during their meeting in May in Hanoi.

Both sides agreed to vigorously boost human resource links and people-to-people exchanges, and to expand local-level cooperation in labour, healthcare, culture, and tourism.

The Vietnam-Japan Comprehensive Strategic Partnership is flourishing on a foundation of solid political trust, with local-level cooperation emerging as a substantive pillar, underpinned by nearly 120 agreements covering trade, investment, human resource training, and cultural exchange. Japanese enterprises maintain a widespread presence in Vietnam, contributing to socioeconomic development, technology transfer, and job creation in localities across the country.

Vietnamese Minister of Foreign Affairs Le Hoai Trung said digital transformation and AI are reshaping governance, production, and social life, while climate change and the depletion of natural resources are creating an urgent need for green transition and sustainable development.

Minister Trung emphasised that the forum serves as an opportunity for localities from both nations to showcase their potential, strengths, and cooperation needs; share experiences and development models; and engage directly with relevant enterprises, organisations, and partners.

Japan has actively supported Hue city in heritage restoration and official development assistance projects aimed at improving local livelihoods, and remains a key tourism market for the ancient capital. Several major Japanese corporations have also chosen Hue as a destination for projects in green industry, logistics, and commercial services.

According to Nguyen Dinh Trung, Secretary of Hue Party Committee, the forum serves to consolidate, expand, and deepen cooperative ties with Japanese partners in innovation, science and technology, digital transformation, smart and sustainable urban development, heritage preservation linked to tourism growth, education and training, trade and investment, and the development of economic and industrial zones.

Bridge between ancient capitals

Japanese Ambassador to Vietnam Ito Naoki said strengthening partnerships at the local level would unlock new investment and business opportunities for Japanese enterprises, broaden the foundation for business cooperation, and contribute to making the Japan-Vietnam Comprehensive Strategic Partnership increasingly substantive and robust.

The ambassador expressed a desire for the governments, local authorities, and private sectors of both nations to join hands in addressing socioeconomic development challenges and fostering innovation. He also emphasised the need to ensure a skilled workforce, develop infrastructure, streamline administrative procedures, and refine investment incentive policies.

Ambassador Naoki affirmed his commitment to boosting cooperation with Vietnamese localities and expressed hope that local-level exchanges between Vietnam and Japan would become increasingly vibrant, making practical contributions to the development of bilateral relations.

Representing the Japanese localities, Governor Yamashita Makoto of Nara Prefecture said the forum serves as a vital bridge for strengthening friendly relations between localities of both countries and lays the groundwork for future cooperation programmes.

Introducing Nara Prefecture, he highlighted its similarities with Hue, noting that both were once ancient capitals with rich historical heritage. Building on this, the two localities are encouraging cooperation on traditional festivals while expanding collaboration in investment attraction, human resource development, and the recruitment of Vietnamese workers.

Regarding Vietnam-Japan local-level relations, PM Hung stated that the Vietnamese government, ministries, sectors, and localities would continue to work alongside Japanese investors to resolve obstacles, significantly improve the investment and business environment, and establish a streamlined institutional framework to facilitate effective and substantive cooperation in the new phase of development.