Japanese Firms Push Deeper Into Ho Chi Minh City Supply Chains

Gunma Bank, a leading regional Japanese lender, has opened a representative office with permanent staff in Ho Chi Minh City to help Japanese companies plug into Vietnamese supply chains — the sharpest concrete move at a conference that drew dozens of Japanese businesses to the city on Thursday.

The 2026 Japan Investment Promotion Conference, organized by the municipal Investment and Trade Promotion Center (ITPC) together with Gunma Bank, brought companies from both countries together around manufacturing, supporting industries, automotive components, agriculture, food processing, trade, services and labor supply. It marked the fourth consecutive year that Gunma prefecture's government and Gunma Bank have sent an economic promotion delegation to Vietnam.

Why does Vietnam matter to Japanese investors now?

Akihiko Fukai, president and representative director of Gunma Bank, told the conference that Vietnam is currently the most active overseas market for his bank's corporate clients. In manufacturing, he said, Vietnam is strengthening its position in the automotive, electronics and garment industries, supported by an abundant workforce and geographical advantages.

Fukai also flagged opportunities well beyond the factory floor:

• information technology and digital services
• tourism and hospitality
• business process outsourcing (BPO)
• engineering, economics and social-science talent

Human resources rank among Vietnam's biggest draws, Fukai said. Gunma businesses that once focused mainly on recruiting local production workers now also seek IT and digital specialists, plus skilled personnel in engineering, economics and social sciences — a hiring profile that tracks Vietnam's move up the value chain.

What deals are already on the ground?

Yoshinori Wakatabe, president and representative director of Yosen Kogyo, offered a case study. His company has done business in Vietnam for more than ten years, established a legal entity in the country, and opened its first food outlet in Hanoi last month, according to the Vietnam News Agency.

Wakatabe said the rapid development of Ho Chi Minh City and its young population had prompted him to consider expanding the company's activities there — a signal that consumer-facing Japanese businesses see demographic momentum, not just low-cost labor, as a reason to commit capital.

Which sectors offer the clearest match?

Cao Thi Phi Van, deputy director of the ITPC, mapped the complementarity. Japan brings strengths in technology, machinery, materials and quality management, she said, while Ho Chi Minh City businesses have capabilities in manufacturing, processing and supplying goods.

That overlap opens production partnerships in:

• supporting industries, electronics and semiconductors
• automobiles and green transportation
• new materials, textiles and footwear
• food processing and the circular economy

Such partnerships would also give local businesses access to new technologies and deeper participation in Japanese supply chains, Van said — a direct route for Vietnamese suppliers into the networks of Japanese manufacturers.

Japanese Consul General in Ho Chi Minh City Ono Masuo underscored the strategic weight of the relationship, saying Vietnam's development is indispensable to strengthening Japan's economic supply chains, including in advanced technology sectors such as semiconductors.

What is still holding investors back?

For all the optimism, Japanese representatives were blunt about friction. Wakatabe said businesses exploring investment or expansion in Vietnam still face many issues they do not fully understand, and proposed that authorities provide more information, clarify regulations and offer guidance.

Tax incentives and support with land access would make it easier for companies to establish factories in Vietnam, he added — a reminder that administrative clarity, not market potential, is now the binding constraint for many Japanese entrants.

Fukai positioned Gunma Bank's new Ho Chi Minh City office as part of the answer, with permanent staff coordinating between Japanese businesses and Vietnamese government agencies.

With a fourth consecutive delegation completed, a bank office staffed on the ground and a food retailer already expanding from Hanoi, the trajectory points to deeper Japanese capital commitments in southern Vietnam — contingent, executives made clear, on faster regulatory guidance from Vietnamese authorities.