POSITIVE GROWTH TREND
Vietnam–Japan relations, established in 1973, have developed into a comprehensive strategic partnership since 2023. Japan is not only one of Vietnam’s leading trading partners but has also long been its largest investor and most important provider of official development assistance (ODA).
At the seminar “Promoting Vietnam’s Trade Cooperation with Japan and South Korea in the New Period,” organized by the Ministry of Industry and Trade in Ho Chi Minh City on December 15, 2025, Nguyen Manh Dong, an official from the Agency of Foreign Trade Development under the ministry, said that in 2024 Japan was Vietnam’s fourth-largest trading partner, as well as its fourth-largest export and import market, with a relatively balanced trade structure.
In the first 11 months of 2025, Vietnam’s exports to Japan reached USD 24.4 billion, up 8.6 percent year on year and accounting for 5.7 percent of the country’s total exports. Imports from Japan totaled USD 22.4 billion, an increase of 14.1 percent, representing 5.5 percent of Vietnam’s total import value.
The commodity structure between the two countries is highly complementary, with limited direct competition. Vietnam mainly exports garments, footwear, seafood and agricultural products to Japan, while importing machinery, equipment, steel, vehicles, chemicals and plastic materials.
Bilateral trade has benefited significantly from free trade agreements such as VJEPA, AJCEP, CPTPP and RCEP, under which Vietnamese exports to Japan generally enjoy tariff advantages.
In terms of investment, during the first 11 months of 2025 Japan ranked fourth among major foreign investors in Vietnam, with registered capital of USD 3.57 billion, accounting for 10.6 percent of total FDI, behind Singapore, China and South Korea. As of November 2025, Japan had 5,698 valid projects in Vietnam, with total registered capital of USD 79.27 billion, making up 15 percent of Vietnam’s total FDI.
Japanese investment focuses mainly on manufacturing and processing (61 percent), electricity, gas and water production and distribution (15 percent), and real estate (10.8 percent). Notable projects such as the Nghi Son Refinery (USD 9 billion), the Dong Anh Smart City (USD 4.1 billion) and the Nghi Son 2 BOT thermal power plant (USD 2.8 billion) have made significant contributions to Vietnam’s development.
According to data from Japan Customs, in the first 10 months of 2025 Japan’s total trade with the world reached nearly JPY 184 trillion (around USD 1.2 trillion), up 0.78 percent year on year. Imports totaled more than JPY 93 trillion (nearly USD 600 billion), down 0.52 percent from the same period in 2024.
Notably, Vietnam’s share of Japan’s imports increased from 3.6 percent in 2024 to around 4 percent in 2025, reflecting a clear upward trend. Imports from Vietnam have generally grown faster than Japan’s overall import growth, signaling positive prospects for Vietnamese exports.
STRINGENT TECHNICAL BARRIERS REMAIN A MAJOR CHALLENGE
Speaking from Japan to businesses attending the seminar, Pham Minh Ha, First Secretary and Trade Counselor at the Vietnam Trade Office in Japan, emphasized that the biggest obstacles facing Vietnamese goods in the Japanese market are not tariffs but non-tariff barriers, particularly regulations on food safety and animal and plant quarantine.
For agricultural and seafood products, the most important regulation is the Food Sanitation Act, which focuses on controlling pesticide and veterinary drug residues. This is the main reason why some Vietnamese shipments have been rejected for failing to meet maximum residue limits.
Japan applies extremely strict plant quarantine procedures. Depending on the product, certain fruits and vegetables are entirely prohibited from entering the Japanese market. Consumer products must comply with the Consumer Product Safety Act and labeling standards set by Japan’s Ministry of Agriculture.
For machinery, equipment and electronic components, enterprises are required to meet conformity assessment regulations, including PSE, PSE-MAC and G-MOC standards. G-MOC relates to labeling requirements on the presence of hazardous substances such as lead and mercury in electrical and electronic equipment.
In the textile and garment sector, although many standards such as JIS or FSA are voluntary, Japanese consumers demand near-perfect quality, even in the smallest details. Textile products must also comply with chemical restrictions, particularly on formaldehyde, carcinogenic dyes and other toxic solvents, and meet the CPTPP “yarn-forward” rule of origin, which is considered highly stringent.
“Another point that deserves special attention is regulations on genetically modified organisms (GMOs). Since 2023, Japan has lowered the permissible threshold from 5 percent to ‘undetectable,’ requiring extremely strict management and segregation processes. For organic labeling, products must be certified under Japan’s JAS organic standards, rather than relying on certifications from exporting countries.
“For wood products, two particularly important requirements took effect in 2025. First, amendments to the Clean Wood Act shift full responsibility for proving the legality of timber sources to foreign suppliers, including the establishment of clear traceability systems. Second, Japan applies the world’s strictest formaldehyde emission standard, known as the four-star F4 standard.”
CAPITALIZING ON OPPORTUNITIES BY UNDERSTANDING JAPANESE CONSUMER TRENDS
According to the Vietnamese Trade Counselor in Japan, consumer preferences in the country are being strongly influenced by population aging, with people aged over 65 accounting for more than 30 percent of the population, leading to significant changes in consumption behavior. Japanese consumers place great emphasis on safety and traceability and are willing to pay a premium for clean, safe and transparent products.
The rapid expansion of green consumption, organic products and health-care items is creating major opportunities for tropical products such as roasted coffee, cashew nuts and processed fruits. Localization trends and demand for convenience are also driving higher consumption of deeply processed and ready-to-eat foods.
In terms of packaging, Ha noted that providing full information and adopting simple, refined designs can increase sales potential by 20–30 percent. Around 60 percent of Japanese consumers prefer products with sustainable packaging. Given limited living space, compact packaging sizes are particularly favored.
An emerging retail channel is drugstore chains, which are seen as an important way to reach elderly consumers and are especially suitable for nuts, dried fruits and functional foods.
Ha assessed that export prospects to Japan remain very positive in the coming period, particularly for wooden furniture, garments, agricultural and seafood products, processed foods, frozen and deeply processed fruits and vegetables, ready-to-eat foods, products serving the Vietnamese community in Japan, and import substitution opportunities amid domestic inflation in Japan.
Based on practical experience, the Vietnam Trade Office in Japan put forward several recommendations for exporters.
First, enterprises should regularly update and strictly comply with import regulations, especially with regard to input quality control, chemical residues and early preparation of certification dossiers.
Second, businesses should adopt a long-term strategy rather than approaching the Japanese market with short-term thinking. While Japan has the world’s highest quality requirements, it also offers sustainable returns for companies with appropriate long-term strategies.
Third, enterprises need to invest in upgrading production technology, management systems, labor standards and environmental practices to meet increasingly stringent social and environmental requirements.
Fourth, companies should strengthen trade promotion, make full use of support programs and actively participate in trade fairs and exhibitions in Japan.
Ha emphasized that in the long run, the Japanese market is expanding its demand for clean, safe, convenient and high-quality imported products. This is an opportune time for Vietnamese enterprises to make systematic investments, build brands and achieve sustainable export growth in Japan.
Source: vneconomy.vn
