According to the survey, Japanese businesses operating in Vietnam continued to post positive results, with the proportion of profitable firms reaching its highest level in more than a decade and a growing inclination to expand investment in 2026.
Mr. Mitsutoshi Okabe, Chief Representative of JETRO in HCMC, said findings from more than 2,000 Japanese companies operating in Vietnam showed that an estimated 67.5 percent were profitable in 2025, up 3.4 percentage points from the previous year and the highest level recorded since 2009.
This also marked the first time in five years that the profitability rate of Japanese companies in Vietnam surpassed the ASEAN average of 65.3 percent, underscoring clear improvements in business efficiency and adaptability amid ongoing volatility in the regional economy.
JETRO attributed these positive results to several structural factors. Domestic demand in Vietnam has continued to expand, while exports—particularly in the manufacturing sector—remain a key driver of profit growth. At the same time, many Japanese firms have proactively restructured operations, streamlined production and business processes, improved productivity, and shifted product portfolios toward higher value-added segments.
Beyond the favorable performance in 2025, the survey also points to a sustained expansion trend in 2026. As many as 56.9 percent of Japanese companies in Vietnam said they plan to expand operations over the next one to two years, the highest proportion in ASEAN for the second consecutive year. The main drivers include positive export prospects and rising domestic demand, with many firms considering strengthening sales functions and reinforcing distribution networks.
Vietnam’s investment climate remains highly rated, according to JETRO. Factors such as market size and growth potential, competitive labor costs, and political and social stability all showed improvements compared with the previous year, helping bolster long-term confidence among Japanese investors. However, JETRO also noted that risks related to administrative procedures, the legal framework, and rising labor costs remain challenges that warrant close attention.
Regarding profit prospects for 2026, Mr. Mitsutoshi Okabe said that 47.6 percent of Japanese companies in Vietnam expect business results to “improve” compared with 2025, although outlooks vary significantly across sectors.
Overall, Vietnam continues to stand out as a key investment destination for Japanese enterprises, supported by a solid profitability base and a trend toward selective expansion in 2026. Sustaining long-term attractiveness, however, will require more substantive improvements to the investment environment.
