Vietnam News Today (Oct. 7): Japanese Investment Surge Unlocks Growth Potential for Vietnamese SMEs

Vietnam News Today (Oct. 7): Vietnam, Germany complement each other in economic cooperation; Japanese investment surge unlocks growth potential for Vietnamese SMEs; Association pledges to strengthen Vietnam – Japan business connectivity; Vietnam’s new visa policy drives record surge in European tourists.
October 07, 2025 | 09:01
Vietnam News Today (Oct. 5): Vietnam’s FDI Inflows Remain Strong Amidst Global Stagnation
Vietnam News Today (Oct. 6): Vietnam Seen as Appealing Destination for German Investors

Vietnam News Today (Oct. 7) notable headlines

Vietnam, Germany complement each other in economic cooperation

Japanese investment surge unlocks growth potential for Vietnamese SMEs

Association pledges to strengthen Vietnam – Japan business connectivity

Vietnam’s new visa policy drives record surge in European tourists

Extreme weather to persist in Vietnam, authorities warn of more storms ahead

HCM City explores new tourism products to boost post-merger potential

Vietnam’s FDI disbursement highest in five years

Vietnam’s foreign tourist arrivals rise 21.5% in nine months

Da Nang emerges as premier international wedding destination

Daniel Müller, a representative of the German Asia-Pacific Business Association (OAV) (Photo: VNA)
Daniel Müller, a representative of the German Asia-Pacific Business Association (OAV) (Photo: VNA)

Vietnam, Germany complement each other in economic cooperation

Daniel Müller, a representative of the German Asia-Pacific Business Association (OAV), has described Vietnam and Germany – the European Union’s largest economy – as ideal and complementary partners in trade and investment.

Assessing bilateral economic and investment relations, Müller, who is an OAV representative at the Asia-Pacific Committee of German Business (APA), noted that ties have expanded and deepened considerably in recent years. He said German businesses have recognized Vietnam’s strong growth momentum and high economic targets, and are eager to engage in this upward trajectory.

In 2024, bilateral trade reached 18.8 billion EUR, making Vietnam Germany’s most important trading partner in the Association of Southeast Asian Nations (ASEAN) and its sixth-largest partner in Asia. Notably, Vietnam’s exports to Germany rose more sharply than German exports to Vietnam, which Müller considered an early outcome of supply chain diversification.

Investment has also continued to rise, driven by the expansion of German firms in Asia to serve both Vietnam’s dynamic domestic market and neighbouring growing markets. The expert stressed that the imminent ratification of the EU – Vietnam Investment Protection Agreement (EVIPA) could provide fresh impetus by enhancing legal certainty for investors. Joint efforts by the two governments to strengthen political cooperation are also creating a more favourable environment for economic relations.

He highlighted Vietnam’s efforts to improve its business and investment climate, noting that compared with many Asian markets, Vietnam offers flexibility, reliability and political stability – the qualities highly valued by German enterprises.

However, challenges remain, including lengthy licensing procedures, a complex and at times opaque legal system, corruption, infrastructure limitations, shortages of skilled labourers, and the need to meet higher sustainability standards in supply chains, cited VNA.

Against the backdrop of global economic uncertainties, Müller underlined that both governments and businesses have a shared interest in intensifying bilateral cooperation to foster stability and predictability. He expressed his confidence that German investment in Vietnam will continue to increase, and as Vietnam advances up the economic value chain, opportunities will emerge for more high-tech cooperation and even reverse investment flows from Vietnamese companies to Germany.

According to the expert, Vietnam presents strong opportunities for OAV members in sectors such as manufacturing (particularly automation), infrastructure and transport, renewable energy, supply operations, healthcare, human resource development, agriculture and food processing.

To further attract German and European investors, he recommended the Southeast Asian nation to continue to professionalize its macroeconomic framework, upgrade infrastructure and logistics networks beyond Hanoi and Ho Chi Minh City, and develop a workforce capable of meeting higher value-added requirements.

Administrative reform is another priority, with the creation of a consistent, transparent regulatory environment and the comprehensive digitalization of licensing processes seen as particularly pressing. He also suggested Vietnam consider opening additional sectors, including strategic ones, to foreign investment.

Overall, Müller concluded, Vietnam should gradually increase the domestic value-added share in its economy. This would both maximize domestic development potential and reduce exposure to increasingly unpredictable global trade amid rising geopolitical tensions. In this process, German enterprises can remain reliable and sustainable partners for Vietnam.

Japanese investment surge unlocks growth potential for Vietnamese SMEs

The robust wave of investment from Japan is opening up breakthrough opportunities for Vietnam’s small and medium-sized enterprises (SMEs) as they pursue deeper integration and improved international competitiveness.

Vietnam’s mergers and acquisitions (M&A) market has been experiencing a resurgence since 2024, continuing into the first nine months of 2025. In 2024 alone, the market recorded 447 M&A deals with a total disclosed value of approximately US$6.93 billion. Notably, foreign investors accounted for up to 70% of total transaction value, with Japan maintaining its leading role.

The sharp increase in Japanese capital not only reflects growing confidence in the Vietnamese market but also presents a valuable opportunity for domestic SMEs to enhance their capabilities and gradually integrate into global value chains, according to VOV.

SMEs receive Japanese investment to pursue deeper integration and improved international competitiveness. (Illustrative image)
SMEs receive Japanese investment to pursue deeper integration and improved international competitiveness. (Illustrative image)

In recent years, M&A deals have been concentrated in strategic sectors such as technology, healthcare, logistics, renewable energy, and financial services. In 2024, the technology sector led in deal value, reaching VND31.65 trillion, underscoring strong investment interest in innovation and digital transformation. Real estate attracted significant capital with VND27.5 trillion, while the consumer and retail sector ranked third with VND26.47 trillion, reflecting demand for distribution network expansion.

This trend signals international confidence in Vietnam’s growth potential and provides local businesses with access to capital, advanced technology, and modern management practices.

According to Mac Quoc Anh, vice president and general secretary of the Hanoi Association of Small and Medium Enterprises, collaboration with major partners like Japan helps local firms tap into these valuable resources. Hanoi currently has around 420,000 businesses, of which 98.5% are SMEs. Therefore, learning from and connecting with global partners is essential for improving business quality and competitiveness.

“Working with Japan not only opens up opportunities with Japanese investors but also paves the way for collaboration with other key markets like the United States, the Republic of Korea, and Europe,” noted Anh.

Phi Hoa, director of ONE-VALUE, a company that has successfully facilitated over 700 projects between Vietnamese and Japanese businesses, said that Japan has consistently ranked among the top sources of foreign direct investment in Vietnam. The surge in outbound Japanese investment stems from a rapidly aging population and a depreciating yen, prompting Japanese companies to seek growth opportunities in emerging markets, and Vietnam is a strategic destination.

“For Japanese businesses, we assist in identifying suitable Vietnamese partners for investment or acquisition. For Vietnamese companies, we help develop strategies that enhance their ability to attract capital, negotiate fair valuations, and effectively penetrate the Japanese market,” said Hoa.

The Hanoi SME Association plans to intensify efforts to connect local businesses with Japanese partners through networking events, technology transfers, and collaborative programs. It will also support companies in understanding their true value when entering the Japanese market, emphasising not just selling products, but integrating into the entire value chain, from production and distribution to after-sales services to generate new value and ensure sustainable profitability.

Association pledges to strengthen Vietnam – Japan business connectivity

The Executive Board for the 2025–2028 tenure of the Vietnam Business Association in Japan (VJBA) made its debut in Tokyo on October 6, marking a milestone for Vietnamese enterprises in Japan as they continue to grow and accompany businesses in the homeland in a new era of development.

Established in September 2013, the VJBA has steadily expanded in both scale and scope of activities. The association now has 41 members, fulfilling its mission and serving as a reliable support network for Vietnamese companies and entrepreneurs operating in Japan. It also plays a crucial role as a bridge connecting businesses from both countries.

Reviewing the association’s performance during the 2023–2025 tenure, Standing Vice President Dinh Anh Minh said the VJBA has expanded its network by admitting 12 new members. It has also enhanced trade promotion between Vietnam and Japan, fostered bilateral cooperation, and supported the business community, reported VNA.

Vietnamese Ambassador to Japan Pham Quang Hieu (centre) presents flowers to congratulate the new Executive Board of the Vietnam Business Association in Japan. (Photo: VNA)
Vietnamese Ambassador to Japan Pham Quang Hieu (center) presents flowers to congratulate the new Executive Board of the Vietnam Business Association in Japan. (Photo: VNA)

In addition, Minh noted, the VJBA has actively participated in community activities, raising over 2 million JPY (13,300 USD) to assist Japanese and Vietnamese people affected by the Noto Peninsula earthquake, donating more than 300 million VND to central Vietnamese localities hit by Typhoon Yagi, and sponsoring cultural community events in Japan.

Building on these achievements, the VJBA has outlined its orientations for the new tenure, including strengthening business connectivity between Vietnam and Japan, promoting digital transformation and competitiveness among member enterprises, expanding strategic cooperation with both countries' authorities, and stepping up support for the Vietnamese community in Japan. The association also aims to increase its membership to 100 in 2026 through communication campaigns, networking, and practical assistance programs.

Speaking at the event, Vietnamese Ambassador to Japan Pham Quang Hieu praised the VJBA’s role, position, and accomplishments, expressing his hope that the association will continue to grow in both size and quality. He reaffirmed the embassy’s commitment to accompanying Vietnamese businesses and entrepreneurs in Japan and to creating the best possible conditions for their future development.

On behalf of the new nine-member Executive Board, VJBA President Tong Thi Kim Giao, Director of Motiti Group, pledged to advance the association and contribute to the development of the Vietnamese community in Japan, as well as to the relationship between the two countries.

Vietnam’s new visa policy drives record surge in European tourists

According to the General Statistics Office, Vietnam received 1.5 million foreign visitors in September 2025. Although this figure represents a 9.6% decrease compared to August, it is still up 19.5% from the same period last year.

In total, more than 15.4 million international tourists arrived in Vietnam between January and September, marking a robust recovery for the tourism industry.

Favorable visa policies, aggressive tourism promotions, and vibrant cultural events celebrating national holidays have played key roles in attracting visitors.

Significantly, European visitors showed the strongest growth. Nearly 1.91 million arrivals from Europe were recorded in the first three quarters, a jump of 34.9% from the previous year. Asia remained Vietnam’s largest market with 12.24 million arrivals (up 20.9%), followed by Oceania with 445,000 (up 13.7%) and the Americas with about 800,000 (up 8.5%).

In the third quarter alone, Vietnam welcomed 568,370 European tourists, up 38% from the previous quarter and an impressive 60.1% higher than the same period in 2024.

Growth was recorded across almost all major European markets: Russia rose by over 245%, Poland by 55%, the Netherlands 35.1%, Switzerland 32.9%, the Czech Republic 32.6%, France 32.3%, Belgium 30.6%, the UK 29.2%, and Germany 23.9%. Other European markets saw a combined increase of 63.4%.

According to the General Statistics Office, the strongest-performing countries were those recently granted visa exemptions from August 15, 2025 - including Belgium, Bulgaria, Croatia, the Czech Republic, Hungary, the Netherlands, Poland, and Switzerland - with a stay period of up to 45 days. Western European nations that had long enjoyed visa waivers also continued to post strong growth, cited VNN.

Achieving the goal of 25 million international visitors in 2025 remains a major challenge for Vietnam’s tourism sector. Photo: NIA
Achieving the goal of 25 million international visitors in 2025 remains a major challenge for Vietnam’s tourism sector. Photo: NIA

Government-backed marketing campaigns and destination promotions have further bolstered Vietnam’s global image.

To achieve the ambitious goal of 25 million foreign visitors in 2025, as set by the Government’s Resolution No. 5, the tourism industry needs to attract an additional 9.6 million tourists by year’s end - equivalent to about 3.2 million per month.

Pham Ha, Chairman of Lux Group, said attracting international visitors requires expanded visa exemptions and incentive programs such as complimentary domestic flights or hotel stays. “These measures could create breakthroughs in attracting large-source markets like India and China,” he suggested.

He noted that even if Vietnam falls short of the 25-million target, a 30% increase in tourism revenue would still be a strong outcome for the industry.

To achieve sustainable growth, Ha emphasized the importance of targeting high-spending travelers. “Typically, luxury tourists account for around 5% and high-end visitors about 10% of total arrivals,” he explained. “We need strategic products and marketing approaches tailored to affluent travelers - so that they’re willing to spend to the very last dollar before leaving Vietnam.”

Deputy Director of the Vietnam National Authority of Tourism, Ha Van Sieu, urged travel businesses to accelerate digital transformation and online sales, open more direct international routes in partnership with airlines, and develop charter flights from emerging markets such as India, Russia, Australia, and the United States.

Extreme weather to persist in Vietnam, authorities warn of more storms ahead

From now until the end of 2025, the number of storms and tropical depressions in the East Sea is expected to be higher than the multi-year average, while cold air fronts are forecast to increase in both intensity and frequency from October, earlier than usual, according to the Department of Hydrometeorology.

Natural disasters in the first nine months of 2025 have shown abnormal, complex, and increasingly extreme patterns compared to previous years, said Hoang Duc Cuong, deputy director of the Department of Hydrometeorology, at a press briefing in Hanoi on October 6.

The northern, north-central, and central coastal regions of Vietnam have been severely affected, with disasters occurring outside of typical seasons, intensifying in severity, and impacting larger areas, he said.

By the end of September, 11 storms and four tropical depressions had formed over the East Sea, significantly higher than average, with six directly or indirectly affecting Vietnam. Notably, Super Typhoon Ragasa that battered Vietnam on September 25 reached wind speeds of more than 200km/h, making it the strongest storm ever recorded in the East Sea. Although it weakened before landfall, it underscored the growing threat of super typhoons amid climate change.

Few days later, Typhoon Bualoi made direct landfall across central Vietnam, bringing widespread torrential rain of 300–600 mm, strong winds, and triggering large-scale flooding, landslides, and flashfloods from the northern to central regions. This was one of the most anomalous and extreme storms observed, VOV reported.

Typhoon Bualoi, followed by heavy rain, has caused severe flooding in many parts of central Vietnam.
Typhoon Bualoi, followed by heavy rain, has caused severe flooding in many parts of central Vietnam.

Since the beginning of the year, Vietnam has experienced 14 widespread heavy rain events, including two rare out-of-season occurrences in May and June. Two particularly destructive storm systems - Typhoons Kajiki and Ragasa - caused overlapping natural disasters within just a month.

Looking ahead, the agency forecast that extreme weather patterns would persist in the remaining months of the year. From October to December 2025, storm activity in the East Sea will likely be above average, with 4–5 storms expected, including 2–3 that may directly impact Vietnam. The ENSO phenomenon is projected to remain in a neutral state, leaning toward a La Nina-like pattern, though not yet reaching full La Nina conditions.

Cold air fronts are anticipated to strengthen from November through December, with the first cold spell likely to hit northern Vietnam in the second half of December, roughly in line with historical averages.

From now until the end of the year, central Vietnam is likely to face more spells of heavy rain. The peak of the storm and flood season is expected to hit the area from Ha Tinh to Hue, and the eastern parts of provinces from Quang Ngai to Khanh Hoa between October and mid-December.

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