Vietnam–Japan Business Is Evolving: What It Means for Talent and Hiring

Vietnam and Japan's economic relationship has been substantial for years. What's changed through 2026 is less the size of that relationship and more its shape — moving away from Japan primarily sending capital and technology into Vietnam's manufacturing base, and toward something closer to a genuine partnership on higher-value work. For employers on either side of that relationship, this shift changes what kind of talent is actually in demand.

What's actually changing

Several concrete developments through 2026 point in the same direction. At Japan ICT Day 2026 in February — an event co-organised by Vietnam's Ministry of Science and Technology, the Vietnam Software and Information Technology Services Association (VINASA), the Vietnam–Japan Information Technology Cooperation Committee, the Japan External Trade Organization (JETRO) and the Japan Information Technology Services Industry Association (JISA) — officials from both countries explicitly described a shift from an "outsourcing personnel" model to what they termed a "co-creation partnership," with joint ventures between Japanese companies (holding brand and core technology) and Vietnamese companies (offering execution capability and speed) named as a concrete 2026 initiative, focused on AI, semiconductors and other strategic digital technologies.

That framing was reinforced later in the year. At a Vietnam–Japan Investment and Trade Cooperation Conference in July 2026 — co-hosted by the ASEAN-Japan Centre, Vietnam's Trade Promotion Agency under the Ministry of Industry and Trade, JETRO, and Vietnam's Trade Office in Japan — Vietnamese officials described a deliberate shift toward "New Generation FDI" concentrated in high-tech sectors such as AI and semiconductors, alongside a stated 30% reduction in administrative red tape and the establishment of dedicated "Japan Desks" in various provinces to support Japanese investors, including smaller and mid-sized firms.

The clearest recent signal came from the Vietnamese government itself. At the 2026 Vietnam–Japan Local Cooperation Forum in Hue on 6 September, Prime Minister Le Minh Hung called for a shift "from a conventional investor-host model to a partnership in which the two sides jointly develop, innovate, produce and enhance their positions in global value chains," and pointed to Politburo Resolution No. 10-NQ/TW, issued in June 2026, which directs Vietnam to selectively pursue foreign investment that brings advanced technology, R&D, high-quality human resources and closer links with domestic businesses — rather than investment volume alone. Vietnam's state news agency reported that two-way trade reached US$33.7 billion in the first seven months of 2026, up 16.8% year-on-year, and that Japan's cumulative registered investment in Vietnam stood at US$80.3 billion as of end-July, ranking third among 153 countries and territories investing in the country.

Why this matters more for hiring than the headlines suggest

For workforce planning, the most relevant evidence comes from JETRO's FY2025 survey of Japanese-affiliated companies overseas (fielded August–September 2025, 894 Vietnam respondents). In Vietnam, 48.2% reported that securing talent had deteriorated over the previous two years — the worst reading among the major countries and regions tracked. Among companies reporting worsening conditions, the difficulty was broadest at the staff/worker level, particularly in manufacturing, while specialty and professional roles were hardest to fill in ICT, consulting and construction. For management-level hiring, respondents most often pointed to a mismatch between the skills job seekers offer and what the role requires.

Taken together, the policy direction points toward higher-value forms of Vietnam–Japan cooperation, while JETRO's employer data shows that Japanese-affiliated companies in Vietnam are already reporting greater difficulty securing talent. The same survey found that 56.9% of Japanese companies in Vietnam plan to expand operations over the next one to two years — above the ASEAN-wide average — making talent availability an important consideration in future workforce planning.

What this means for talent and hiring specifically

Higher-value cooperation can also change the capabilities employers need to plan for. As Japanese and Vietnamese businesses deepen collaboration in areas such as AI, semiconductors and advanced manufacturing, employers may need to consider process and quality engineers, R&D-adjacent technical staff, and roles that combine technical depth with the ability to work directly with Japanese counterpart teams — alongside existing production-line and assembly needs.

Bilingual and cross-functional capability becomes more, not less, important. As cooperation shifts from outsourced execution to joint development, the coordination burden between Vietnamese and Japanese teams increases. Roles that can genuinely bridge technical, commercial and cultural gaps — rather than simply translate — sit at the centre of this shift.

The talent gap JETRO describes is specific, not generic. JETRO's own FY2025 data shows the deterioration is broadest at the staff/worker level in manufacturing, with specialty and professional roles hardest to fill in ICT, consulting and construction, and management-level gaps most often attributed to a skills mismatch rather than a shortage of candidates. This is a more textured picture than "Vietnam has a labour shortage" — it points to specific occupation levels and functions, which typically require longer, more deliberate sourcing than a standard hire.

Provincial "Japan Desk" support is worth watching as investment develops. The establishment of dedicated Japan Desks in various provinces, alongside stated red-tape reductions, is a planning inference worth watching rather than a forecast of where hiring or investment will definitely occur — it suggests provinces beyond the traditional hubs of Hanoi and Ho Chi Minh City may see more Japanese SME activity over the next one to two years, but the policy signal alone does not confirm that hiring will actually concentrate there.

A regional dimension worth watching

The push toward provincial Japan Desks and reduced administrative barriers for Japanese SMEs also gives workforce planners a reason to watch locations beyond Hanoi and Ho Chi Minh City. As investment develops, employers entering new provincial markets may need to assess local talent availability early and consider broader sourcing, relocation or training strategies where specialist skills are limited.

What employers should consider

For Japanese-affiliated employers already operating in Vietnam, or those planning to expand: workforce planning should account for the fact that JETRO's own survey data identifies staff-level manufacturing roles, and specialty/professional roles in ICT, consulting and construction, as the categories where talent acquisition has deteriorated most. Sourcing timelines for these roles should be planned further in advance than for standard operational hiring, and salary benchmarking should reflect that competition for this talent — from Chinese, Japanese and South Korean firms alike, per JETRO's own competitor data for Vietnam — is intensifying, not easing.

For Vietnamese professionals building a career in this space, the practical implication is that technical depth alone is increasingly not enough — the roles in highest demand combine specific technical capability with the language and cross-cultural coordination skills to work directly within a Japanese-Vietnamese joint structure, a theme explored further in our companion article on multilingual careers.

FAQ

Is Japanese investment in Vietnam increasing in 2026?

Two-way trade reached US$33.7 billion in the first seven months of 2026, up 16.8% year-on-year, and Japan's cumulative registered investment stood at US$80.3 billion as of end-July, ranking third among 153 countries and territories investing in Vietnam, according to Vietnam's state news agency. Separately, JETRO's own FY2025 survey found 56.9% of Japanese companies in Vietnam plan to expand operations, above the ASEAN-wide average. This reflects investment and business sentiment, not a direct measure of hiring volume.

What kind of roles are hardest for Japanese companies to fill in Vietnam?

JETRO's FY2025 survey of Japanese-affiliated companies found the deterioration in securing talent is broadest at the staff/worker level in manufacturing, with specialty and professional roles hardest to fill in ICT, consulting and construction, and management-level gaps most often linked to a mismatch between candidates' skills and what the role requires.

Does more Japanese investment automatically mean more hiring?

Not necessarily. Investment and cooperation announcements indicate business and policy direction, while JETRO's separate employer survey provides direct evidence that Japanese-affiliated companies in Vietnam are experiencing greater difficulty securing talent.

What does "co-creation partnership" mean for Vietnamese talent?

It signals a shift from Vietnam primarily executing outsourced work toward more joint development, which tends to increase demand for roles that combine technical skill with the ability to coordinate directly with Japanese counterpart teams, rather than purely production or execution-focused roles.

Related Articles

• Why Japanese-Speaking Finance Professionals Are in Demand in Vietnam
• Why Japanese Companies in Vietnam Have a Talent Advantage They Are Not Using
• Vietnamese, English and Japanese: How Multilingual Skills Can Open More Career Doors in Vietnam

About the Author

Valerie Ong

Regional Head of Marketing, Reeracoen Group

Valerie leads content and market insights for Reeracoen across Asia. She works closely with Reeracoen's specialist recruitment consultants to translate hiring data, salary benchmarks and labour market trends into practical guidance for Vietnam's employers and professionals. Her work draws on Reeracoen's proprietary hiring, employer and worker research, alongside recruitment-market insights from Reeracoen's specialist consultants.

Language note: This article is published in English. Reeracoen Vietnam also publishes selected content in Vietnamese and Japanese for our local professional community.

References

1. Japan External Trade Organization (JETRO) — "FY2025 Survey on Business Conditions of Japanese-Affiliated Companies Overseas: Global Edition" (published December 2025; survey fielded August–September 2025, Vietnam n=894 for labour-related questions, n=905 for business-development questions). Original source for the 48.2% talent-deterioration figure, Vietnam's diffusion index of -44.6, the 56.9% expansion-intention figure, and occupation-level shortage data.
2. Vietnam News Agency (VietnamPlus) — "PM calls for Vietnam-Japan investment ties to evolve into co-development partnership," 6 September 2026. Source for the US$33.7 billion trade figure, the US$80.3 billion cumulative investment figure, Politburo Resolution No. 10-NQ/TW, and Prime Minister Le Minh Hung's remarks at the 2026 Vietnam–Japan Local Cooperation Forum.
3. ASEAN-Japan Centre (AJC) — "Driving the Next Wave of Partnership: Viet Nam-Japan Investment and Trade Cooperation Conference 2026" (July 2026), co-hosted with Vietnam's Trade Promotion Agency (VIETRADE, under the Ministry of Industry and Trade) and JETRO. Source for "New Generation FDI," the 30% administrative red-tape reduction, and provincial Japan Desks.
4. Vietnam.vn (reporting on Japan ICT Day 2026, Hanoi, 4 February 2026) — event co-organised by Vietnam's Ministry of Science and Technology, VINASA, the Vietnam–Japan IT Cooperation Committee, JETRO and JISA. Source for the "outsourcing personnel" to "co-creation partnership" framing.

Disclaimer: The information in this article is intended for general reference purposes only. It is based on Reeracoen Vietnam's proprietary research and should not be construed as legal, financial, or professional advice. While every effort has been made to ensure accuracy, Reeracoen Vietnam Co., Ltd. makes no representations or warranties regarding the completeness or accuracy of the information provided. Readers are advised to seek independent advice where appropriate. Reproduction or citation of survey data is permitted with appropriate attribution to Reeracoen Vietnam Co., Ltd.