Abstract
Vietnam became a member of the WTO in 2007. The huge business opportunities
that this created have made Vietnam a new economic force that is attracting a
lot of foreign investment. Japanese businesses started investing in Vietnam in
1990. Japanese companies have been raising investment in Vietnam in order to
reduce production costs and to spread risks on overseas investments.
Currently, free trade agreements between Vietnam and Japan are in the final
stages of negotiation and these are expected to be signed by the end of 2007.
Japanese investment in Vietnam can therefore be expected to continue to
increase in the future. This paper will analyze Japanese and other foreign
investment in Vietnam as well as the development of Japanese companies in
Vietnam.