Vietnam needs industrialization support policies to encourage industrial development and increase the value added of foreign direct investment (FDI) capital, according to Professor Ikebe Ryo of Japan's Senshu University.

Prof. Ikebe Ryo made the remarks at a scientific symposium titled "Vietnam-Japan Relations and Prospects for Economic Cooperation in line with Vietnam's Development Stages" held in Hanoi this week.

He talked about the impact of FDI surge on Vietnam's economic growth and industrialization process, and the economic efficiency brought by this source of capital.

The professor emphasized that improving labor productivity is essential for Vietnam to avoid falling into the middle-income trap. 

Experts attend the scientific symposium on Vietnam-Japan relations and prospects for economic cooperation. Photo: JICA Vietnam

The scientific symposium was organized by the Ho Chi Minh National Academy of Politics (HCMA) and the Japan International Cooperation Agency (JICA) on the occasion of the 50th anniversary of Vietnam-Japan diplomatic ties. The symposium was attended by more than 800 young leaders and managers attending advanced political theory courses at the HCMA.

Speaking at the symposium, Associate Professor Dr. Hoang Van Nghia, Head of the International Cooperation Department at HCMA, praised Japan's role in Vietnam's multi-faceted economic development.

"Japan's contributions have helped Vietnam maintain a stable growth path, driven by the far-reaching impact of FDI. Projects with Japan's support in terms of finance, experts, and technology have helped Vietnam shift from a capital- and labor-intensive model to one with a strong export-oriented structure," Nghia said.

Sugano Yuichi, Chief Representative of JICA in Vietnam, said the symposium is part of the JICA CHAIRS program, which has been running since 2020 to share valuable lessons and experiences from Japan's socio-economic development journey.

Sugano expressed his hope that the participating experts will exchange insights and share ideas on effective cooperation methods that will strengthen the relationship between the two sides. 

Professor Tran Van Tho, Honorary Professor at Waseda University in Japan, stressed the East Asian nation's keen interest in Vietnam's development path and cooperation, which includes institutional reform, improving the business climate, and helping Vietnam formulate industrialization strategies.

Related initiatives supporting such efforts include the Ishikawa Project (1995-2000), the Vietnam-Japan Partnership since 2003, and a number of industrial policy research initiatives.