Hanoi Targets High-Tech Japanese Capital as Firms Signal Record Expansion

A significant majority of Japanese companies in Vietnam are planning to expand their operations over the next one to two years, creating a major opportunity for Hanoi to attract high-quality, technology-focused capital.

This outlook was presented by Ozasa Haruhiko, chief representative of the Japan External Trade Organisation (JETRO) in Hanoi, during the Hanoi Capital Master Plan Announcement and Investment Promotion Conference 2026 held on June 29. He highlighted a JETRO survey indicating that 56.9 per cent of Japanese businesses in the country intend to expand production and business activities. This figure places Vietnam at the top of ASEAN for the second consecutive year in terms of corporate expansion plans.

Furthermore, a survey of Japanese firms across Asia and Oceania revealed that 67.5 per cent of those operating in Vietnam forecast profitability in 2026. This marks the highest percentage since 2009 and reflects a significant improvement in the investment environment and the Vietnamese economy's growth prospects.

“Hanoi is emerging as a locality with many advantages to capitalise on this shift,” Haruhiko said. He noted that new strategic frameworks have opened up significant development space for the city, including the Politburo's Resolution No.02-NQ/TW on Hanoi's development, the National Assembly's approval of the 2026 Capital City Law, and the Hanoi Capital City Master Plan with a 100-year vision.

JETRO representatives said they appreciated Hanoi's long-term goals, especially its ambition to become a regional centre for innovation, science, technology, and international connectivity. “Along with its inherent advantages in geographical location, human resource quality, and market size, Hanoi possesses many better conditions to engage foreign-invested projects in high-tech, innovation, smart manufacturing, and high-quality services,” Haruhiko stated.

To realize this potential, he stressed that “the city needs to continue improving its investment environment and enhancing its competitiveness.” He added, “I expect Hanoi to continue playing a bridging role between Vietnamese and foreign businesses, and to continue improving the investment environment to create even favourable conditions for the business community.”

The 2026 Capital City Law is seen as a key enabler, introducing a special mechanism that allows Hanoi to be more proactive in mobilising resources, developing infrastructure, and improving its investment climate. “These are important factors that help Hanoi enhance its competitiveness in a context where international corporations increasingly value stability, predictability, and the effectiveness of local government implementation,” Haruhiko said.

Many Japanese companies already have a long-standing presence in the capital. A prime example is the Sumitomo Group, which established the Thang Long Industrial Park in 1997. The project has since attracted approximately $3 billion in cumulative investment and created around 60,000 jobs.