Many Japanese businesses have indicated their readiness to expand their investments and operations in the next one to two years.

Foreign direct investment (FDI) implemented in Viet Nam in January is estimated at US$1.68 billion, the highest level in five years. A separate survey by the Japan External Trade Organization (JETRO) shows that over 67% of Japanese businesses operating in Viet Nam are profitable, the highest level since 2009, and they are ready to expand their investments in the next one to two years.

Entering 2026, FDI flows from Japan are not only increasing in quantity but are also undergoing a strong qualitative shift, viewing Viet Nam not only as a production hub but also as an important consumer market.

For every 10 shirts sold at Uniqlo stores in Viet Nam , 6 are manufactured in Viet Nam. With a network reaching 30 stores nationwide by early 2026, this retailer is demonstrating its strategy of transforming Viet Nam from an "export factory" into a "key consumer market".

Mr. Akiyama Naoki, General Director of UNIQLO Viet Nam , said: "This year, we will continue to expand our store network to new cities. In addition, during the preparation period and the Tet holiday, we will maintain operations in both online and physical stores."

Beyond retail, the service sector has also witnessed a significant penetration of Japanese joint ventures. A prime example is the industrial catering and ready-to-eat food segment.

Mr. Wako Kiharu, President of Nikkoku Trust Group of Japan, said: "We have taken initial steps in exploring the industrial catering market in Viet Nam. In the long term, we aim to produce ready-made meals or meals for sale in supermarkets and convenience stores. This will be implemented in stages, selecting customer groups based on the strengths of our partners."

According to JETRO, among newly registered Japanese businesses investing in Viet Nam, the non-manufacturing sector now accounts for 65% - a significant increase compared to the 50-55% of previous years.

Mr. Okabe Mitsutoshi, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, stated: "Besides the manufacturing sector, we have recently received an increasing number of investment proposals from service businesses such as food and beverage , retail, trade, and distribution. Therefore, in 2026, the trend of investment from non-manufacturing service sectors into Viet Nam, including both investment and trade, is likely to continue to increase."

Approximately 54% of Japanese businesses in Viet Nam stated that the biggest reason for their expansion is the growth potential of the domestic market, rather than the previously perceived advantage of lower labor costs. The percentage of profitable businesses in non-manufacturing sectors also reached 72% – significantly higher than the overall average. This explains why Japanese capital continues to flow into exploiting the potential consumer market in Viet Nam.

Source: VTV