Why Japanese companies are looking to Vietnamese Startups for new growth drivers

08Sep2026

B&Company

B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.

Against a backdrop of limited growth prospects in Japan due to slow economic growth and demographic pressures, Vietnam is emerging as a notable growth market, source of technology talent, and testing ground for innovation. For Japanese companies, Vietnamese startups are not only financial investment targets but can also serve as partners in product development, access to local customers, and the creation of business models that can be scaled to Japan or across ASEAN.

Economic Context and Drivers of Vietnam–Japan Cooperation

Vietnam maintained strong growth in 2025–2026. GDP expanded by 8.02% in 2025, bringing the size of the economy to approximately USD 514 billion and GDP per capita to USD 5,026. Total merchandise trade reached approximately USD 930.07 billion in 2025, indicating the continued expansion of both the market and the economy’s level of integration. These developments are also increasing demand for solutions in finance, logistics, e-commerce, healthcare, manufacturing management, and digital transformation. [1]

Foreign investment flows continue to reinforce Vietnam’s role in regional supply chains. Disbursed FDI reached USD 27.62 billion in 2025, a record high, while newly registered and adjusted capital, excluding share purchases, totaled approximately USD 31.39 billion. Japan ranked fourth in newly registered and adjusted capital, with approximately USD 3.08 billion across 429 projects. [2]

Conversely, Japanese companies are facing structural constraints in their domestic market. In 2024, people aged 65 and over accounted for 29.3% of Japan’s total population, while those aged 15–64 represented only 59.6%. [20] The Bank of Japan also projected Japan’s real GDP growth at 0.5% for fiscal 2025, substantially below Vietnam’s growth rate. [21] In this context, expansion into higher-growth markets and access to external sources of technology are becoming increasingly relevant strategic options for Japanese corporations.

The bilateral institutional framework supports this trend. In November 2023, Vietnam and Japan upgraded their relationship to a “Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World,” identifying innovation, technology transfer, digital transformation, green transformation, and economic security as important areas of cooperation. [3] Connection programs implemented by NIC, JICA, JETRO, UNDP, and private-sector partners are also creating additional channels for Vietnamese startups to access Japanese companies, investors, and the Japanese market. [8]

Why Vietnamese Startups Are Becoming More Attractive to Japanese Companies

First, startups can help Japanese companies access the Vietnamese market more quickly through user data, customer networks, and an understanding of local behavior. JETRO classifies Vietnam as a market characterized by “consumer-driven innovation,” where population scale, demand for solutions to social challenges, and technology adoption create favorable conditions for new business models to be tested and commercialized. [13]

Second, Vietnam’s technology workforce can supplement Japanese companies’ needs in software development, AI, and R&D. This advantage should not be viewed simply as a labor-cost differential. A JETRO survey found that 57.3% of Japanese companies in Vietnam regard rising labor costs as a risk, suggesting that long-term strategies need to rely more on productivity, technical capabilities, and the ability to co-develop products. [4]

Third, the quality and composition of capital flowing into Vietnamese startups are changing. In 2025, VC investment in Vietnamese startups reached USD 509 million, up 28% year on year, while the number of deals fell by 13% to 103. This trend indicates a greater concentration of capital in companies with clearer business models and scalability. Notably, funding for HealthTech reached USD 170 million, AI USD 130 million, and ClimateTech USD 35 million. [5][9]

Fourth, working with startups allows Japanese companies to test technologies or business models before committing substantial capital. Under a venture-client approach—initially becoming a customer or pilot partner of the startup—companies can generate real-world data on technological effectiveness, integration feasibility, and fit with business needs. This provides a basis for deciding whether to deepen the partnership, make a minority investment, or move toward a joint venture or M&A.

Finally, the relationship can create value in both directions. Vietnamese startups contribute development speed, technology, and localization capabilities, while Japanese companies bring capital, technical standards, customer networks, quality-control capabilities, and access to the Japanese market. Cases such as Sojitz–Finviet, Mizuho–MoMo, and Sumitomo–Rikkeisoft show that cooperation can extend beyond financial investment toward product integration, distribution channels, and market development. [6][10][17]

Sectors of Interest to Japanese Investors

The sectors attracting Japanese investors are not limited to standalone technologies. They can be grouped into three broader investment themes based on the role they play in Vietnam’s economy: commercial infrastructure and platforms, deep technology and manufacturing, and sustainable and social growth. This grouping also highlights where Japanese companies can contribute beyond capital—through sector expertise, technology, operational capabilities, and access to the Japanese market.

Sectors of Interest to Japanese Investors

Investment theme	Sector	Data / trend	Implications for Japanese investors	Reference cases
Commercial Infrastructure & Platforms	Fintech	Digital payments continue to expand; 88.96% of people aged 15 and over have a bank account. The fintech sandbox under Decree No. 94/2025/ND-CP provides a controlled testing framework for certain new models. [7][11]	Relevant for Japanese banks, insurers, and card companies seeking to expand retail, SME, and digital-finance services.	Mizuho acquired approximately 7.5% of M-Service/MoMo in 2021, combining investment with financial-services cooperation. [10]
Commercial Infrastructure & Platforms	LogisticsTech	Vietnam’s logistics industry is estimated at approximately USD 70–80 billion, growing by 14–16% annually, with more than 45,000 participating companies. [16]	Opportunities center on digital ordering, warehouse management, route optimization, supply-chain data, and embedded finance.	Sojitz invested in Finviet and utilizes the ECO Merchant platform across more than 30,000 stores to connect with its wholesale operations. [6]
Commercial Infrastructure & Platforms	E-commerce / B2B commerce	Vietnam’s e-commerce market continues to grow rapidly, while competition among B2C platforms is becoming increasingly intense. [18]	For Japanese companies, opportunities may lie more in B2B commerce, imports of Japanese products, fulfillment, seller data, and embedded finance.	In 2024, KAMEREO raised USD 7.8 million in a Series B round involving Japanese investors including Sumitomo Corporation, SMBC Venture Capital, Mitsubishi UFJ Capital, and Reazon Holdings. [19]
Deep Technology & Manufacturing	Manufacturing Tech	Newly registered and adjusted FDI in manufacturing and processing reached approximately USD 18.59 billion in 2025. [2]	Demand is evident in quality control, predictive maintenance, robotics, MES, energy management, and supplier digitalization.	The Sumitomo–Rikkeisoft partnership aims to provide IT and DX services to global customers. [17]
Deep Technology & Manufacturing	AI	Investment in AI startups reached approximately USD 130 million in 2025, 1.6 times the 2024 level; the number of deals increased to 23. [5]	Potential areas include Voice AI, computer vision, and enterprise automation.	NamiTech has deployed NamiSense at Toho Gas in Japan and established a presence in Tokyo, demonstrating the potential to bring technology developed in Vietnam to the Japanese market. [12]
Sustainable & Social Growth	AgriTech	Demand is focused on traceability, improving production efficiency, agricultural commercialization, and reducing post-harvest losses.	Japan has strengths in equipment, sensors, preservation, and quality standards, while Vietnamese startups have advantages in farmer networks and understanding fragmented supply chains.	FoodMap connects more than 2,000 farmers and over 200 brands, and has also received investment from BEENEXT and other funds. [13]
Sustainable & Social Growth	CleanTech	Funding for ClimateTech reached approximately USD 35 million in 2025, up 52% and the highest level in the report series. [5]	There is room for thermal technologies, energy efficiency, and emissions reduction in manufacturing.	UntroD Capital Asia invested in Alternō to develop sand-based thermal energy storage technology; the company subsequently expanded into Japan. [14]
Sustainable & Social Growth	HealthTech	Investment in healthcare startups reached approximately USD 170 million in 2025, 2.7 times the previous year. [5]	Population aging and demand for home care create opportunities for models combining Japanese expertise with local operating networks.	Kitahara Group and WeCare247 have been implementing a comprehensive healthcare model in Vietnam since March 2026. [15]

Source: B&Company synthesis from [2], [5]–[19]. Investment figures reflect the amount of capital reported by the respective sources and should not be interpreted as the market size of each sector.

Conclusion

Vietnamese startups offer Japanese companies more than cost advantages. They provide faster access to growth markets, emerging technologies, local data, and technical talent. In return, Japanese companies bring long-term capital, quality standards, customer networks, and industrialization capabilities. This complementarity supports cooperation ranging from pilots and joint product development to strategic investment and cross-border expansion.

The most important strategic recommendation is to adopt a venture-client approach: start as a customer or pilot partner before becoming an investor. Testing a startup’s solution in real operations allows Japanese companies to assess its effectiveness, integration feasibility, and business value while limiting initial risk. Successful pilots can then lead to wider deployment, minority investment, joint ventures, or M&A.

As startup funding becomes more selective, the strongest opportunities will lie in market-validated startups that solve concrete business problems. By combining the roles of customer, technology partner, investor, and market-expansion channel, Japanese companies can turn Vietnamese startups into long-term contributors to their regional growth strategies—not merely financial investments.

Start an innovative Start-up in Vietnam: A brief guide to market entry

Vietnam’s startup ecosystem in the Fintech field: Current status and growth potential

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B&Company

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Reference

[1] National Statistics Office of Vietnam, Socio-economic situation in Q4 and 2025: https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/01/bao-cao-tinh-hinh-kinh-te-xa-hoi-quy-iv-va-nam-2025/

[2] JETRO, Foreign direct investment into Vietnam in 2025: https://www.jetro.go.jp/biznews/2026/01/93917919d0a8f0ba.html

[3] Government of Vietnam, Joint Statement on upgrading Vietnam–Japan relations to a Comprehensive Strategic Partnership: https://xaydungchinhsach.chinhphu.vn/toan-van-tuyen-bo-chung-ve-viec-nang-cap-quan-he-viet-nam-nhat-ban-len-doi-tac-chien-luoc-toan-dien-119231127212221484.htm

[4] JETRO, Survey on business conditions of Japanese companies in Vietnam, 2026: https://www.jetro.go.jp/biz/areareports/2026/21fcf2689cf256b0.html

[5] JETRO, Investment in Vietnamese startups in 2025: https://www.jetro.go.jp/biznews/2026/07/666039160b3fc02f.html

[6] Sojitz, Investment in Finviet, 2024: https://www.sojitz.com/en/news/article/20240426.html

[7] Government of Vietnam, Decree No. 94/2025/ND-CP: https://vanban.chinhphu.vn/?docid=213519&pageid=27160

[8] UNDP Vietnam, Five Vietnamese Startups Sealed Partnerships with Japanese Firms, 2026: https://www.undp.org/vietnam/press-releases/five-vietnamese-startups-sealed-partnerships-japanese-firms

[9] Vietnam Private Capital Agency, Vietnam Innovation & Private Capital Report 2026: https://www.vpca.vn/insights/vietnam-innovation-private-capital-report-2026

[10] Mizuho Financial Group, Mizuho Bank invests in M-Service/MoMo, 2021: https://www.mizuhogroup.com/global-news/2021-12-20211221release-eng

[11] Vietnam Financial Times, Cashless payments in 2025: https://thoibaotaichinhvietnam.vn/cashless-payments-hit-28-times-gdp-in-2025-191885.html

[12] NamiTech, Company milestones and Toho Gas deployment: https://www.namitech.io/company/aboutnamitech

[13] JETRO, FoodMap – startup supporting farmers through e-commerce, 2024: https://www.jetro.go.jp/biz/areareports/2024/950c6d7784b760c8.html

[14] UntroD Capital Asia, Alternō Series A investment, 2025: https://untrod.inc/en/news/1870/

[15] WeCare247, Cooperation with Kitahara Group, 2026: https://wecare247.com.vn/wecare-247-hop-tac-cung-benh-vien-than-kinh-nhat-ban-kitahara-group-kien-tao-mo-hinh-cham-soc-suc-khoe-toan-dien-tai-viet-nam-%F0%9F%A4%9D/

[16] Ministry of Industry and Trade, Vietnam Logistics Development Strategy implementation: https://moit.gov.vn/tin-tuc/phat-trien-cong-nghiep/chinh-sach/bo-cong-thuong-to-chuc-hoi-nghi-trien-khai-chien-luoc-phat-trien-dich-vu-logistics-viet-nam.html

[17] Vietnam News, Sumitomo Corporation and Rikkeisoft strategic partnership: https://vietnamnews.vn/economy/1688621/sumitomo-corporation-and-rikkeisoft-corporation-enter-strategic-partnership.html

[18] Vietnam News Agency, Digital economy and e-commerce development: https://vietnam.vnanet.vn/english/long-form/digital-economy-%E2%80%93-driver-for-vietnams-breakthrough-in-new-development-phase-420780.html

[19] Vietnam-based food sourcing startup Kamereo nets $7.8 mln in Series B funding, 2024: https://theinvestor.vn/vietnam-based-food-sourcing-startup-kamereo-nets-78-mln-in-series-b-funding-d13710.html

[20] Statistics Bureau of Japan, Population Estimates as of October 1, 2024: https://www.stat.go.jp/english/data/jinsui/2024np/

[21] Bank of Japan, Economic Activity, Prices, and Monetary Policy in Japan, June 2025: https://www.boj.or.jp/en/about/press/koen_2025/ko250625a.htm