Japanese businesses operating in Vietnam posted their highest profit outlook in 15 years in 2025, the Vietnam News Agency quoted a survey released on January 26 by the Japan External Trade Organisation (JETRO) as reporting.
JETRO’s 2025 Survey on the Business Conditions of Japanese Companies Investing Overseas shows that 67.5% of Japanese firms in Vietnam expect to be profitable, up 3.4 percentage points from 2024 and the highest level since 2009.
Notably, this is the first time in five years that Vietnam has outperformed the ASEAN average of 65.3%. Meanwhile, the proportion of firms forecasting losses fell to 17.6%, down 1.7 points year on year, marking a second consecutive year of improvement.
In the manufacturing sector, the profitability ratio reached 74.1%, up 3.9 points, while the loss-making ratio dropped sharply to 13%. Significant gains, exceeding 15 percentage points were recorded in industries such as paper, wood products and printing; electrical and electronic components; and iron, steel and non-ferrous metals.
In the non-manufacturing sector, 61.2% of firms reported profits, up 3.3 points, although the loss-making ratio edged up to 22%. Real estate leasing, education and healthcare saw profit improvements of more than 20 points, while transport equipment, mining, energy, tourism, entertainment, retail and food services continued to post profitability rates below 50%.
Looking ahead to 2026, 47.6% of surveyed firms expect improved profits, though more than 30% of transport equipment and parts manufacturers anticipate a deterioration in performance. Over the next one to two years, 56.9% of Japanese firms in Vietnam plan to expand operations, an increase of 0.8 points year on year, keeping Vietnam at the top of ASEAN for expansion intentions for the second consecutive year. Only 4.2% expect to scale down, and just 0.7% consider relocation or withdrawal.
Google translate