On February 17, Prime Minister Pham Minh Chinh hosted a meeting with Nagao Yutaka, president of Yamato Holdings.

Yamato Holdings holds approximately 46 per cent of Japan’s home delivery market, and has 7,000 offices across 23 countries, with an annual revenue of $10 billion.

Yutaka noted that, "Vietnam is a potential market for Yamato Holdings, so we hope to receive favourable conditions during our operations in the country. While Japan is facing an ageing population, including ageing drivers. Yamato Holdings is looking to invest in a professional driving training centre in Vietnam to supply labour to the Japanese market."

"This will be coupled with the establishment of an AI research lab to research and apply AI, big data, and digital transformation in the transportation industry. The group hopes to contribute to the development of transportation and logistics for the semiconductor industry, alongside the fast-paced and sustainable growth of Vietnam," he added.

He also revealed plans to team up with Vietnamese partners to expand investments in semiconductor supply chain development and other key industries.

Prime Minister Chinh lauded the group's ongoing projects in partnership with FPT Corporation, which will contribute to the development of Vietnam's logistics sector and cement the two nations' economic ties.

"Vietnam boasts advantages and potential for different kinds of transportation thanks to a market of 100 million people, a network of 17 free trade agreements signed with 60 economies, an import-export turnover of $800 billion, and a fast-growing e-commerce market. Vietnam has set a target of achieving double-digit growth in the upcoming years," the prime minister noted.

Logistics costs remain high in Vietnam, accounting for 17-18 per cent of GDP. Vietnam identifies transport infrastructure as one of three strategic breakthroughs to reduce logistics costs, increase competitiveness, and diversify markets and supply chains. Thanks to its strategic location in the most vibrant trading area in the world, Vietnam has the advantage of becoming an important regional freight and logistics hub.

The PM asked Yamato Holdings to facilitate investment attraction in Vietnam's logistics industry, promote financial and green development funding from Japan, and partner with Vietnamese institutions to train high-quality human resources, particularly for the logistics sector.

He also recommended Yamato Holdings to work with relevant ministries and agencies to research and develop logistics centres in northern provinces, such as Bac Ninh and Bac Giang. The Japanese company's investment should extend beyond the logistics sector to areas where it has expertise, such as finance, insurance, and IT.