JETRO’s 2025 Survey 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.

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.

VNA-Van Nguyen