Vietnam continues to rise as a preferred industrial hub in Southeast Asia due to its strategic location, stable government, and investor-friendly policies. As more Japanese firms seek a manufacturing base beyond China, Vietnam has emerged as a compelling choice. In this milieu, the collaboration between Nippon Steel Trading Corporation and Viglacera Real Estate Company signifies a calculated move to ride this wave of industrial migration and supply chain diversification.
Who’s Involved?
Nippon Steel Trading Corporation, a subsidiary of the global steel behemoth Nippon Steel, has been actively involved in Vietnam’s industrial scene since 2017, acting as a sales agent for the Phu My 3 Specialized Industrial Park. Viglacera, a Vietnamese state-owned enterprise with extensive experience in industrial real estate, owns 15 industrial parks, 13 in northern Vietnam and 2 in the central region, spanning approximately 4,500 hectares. Currently, 28 Japanese companies operate within Viglacera’s parks.
Expansion into Northern Vietnam
This latest agreement allows Nippon Steel Trading to significantly broaden its presence in northern Vietnam, a region witnessing heightened interest from Japanese investors. The area’s proximity to China, along with improved logistics and connectivity, makes it attractive for manufacturers in electronics, automotive parts, and precision industries. This expanded reach enables Nippon Steel Trading to respond more dynamically to increasing demand from its Japanese clientele.
Viglacera’s Strategic Push
For Viglacera, the deal aligns with its ambition to scale up sales to Japanese firms by leveraging Nippon Steel Trading’s vast international network and industrial marketing expertise. The firm sees this as a natural progression in its effort to internationalize its industrial park business and increase the quality of tenants. According to Viglacera’s spokesperson, the partnership “represents a meaningful step toward creating internationally competitive, infrastructure-rich industrial zones.”
Infrastructure Cooperation on the Horizon
The partnership goes beyond land sales. Both entities have agreed to explore joint ventures in infrastructure development within the parks. These include power generation, water supply, green construction, and smart logistics. Such integration is aimed at providing turnkey solutions for Japanese firms setting up operations, ensuring smoother onboarding and sustainability compliance.
History of Collaboration
Their cooperation began with the Phu My 3 Specialized Industrial Park in southern Vietnam, where Nippon Steel Trading served as the principal sales agent. Their success in that park laid the foundation for this new alliance. "Our experience in Phu My 3 has given us deep insights into investor expectations, and Viglacera has proven to be a capable and visionary partner," a Nippon Steel executive noted.
Vietnam’s Economic Magnetism
Japan remains one of Vietnam’s largest sources of foreign direct investment, with cumulative figures surpassing $68 billion as of early 2025. The demand for clean, well-managed, and strategically located industrial parks continues to escalate. Through this agreement, Nippon Steel Trading and Viglacera are well-positioned to cater to this niche, enhancing Vietnam’s status as an industrial magnet in the ASEAN region.
Future Prospects & Regional Influence
Both companies envision their partnership evolving into a national model of international collaboration in industrial park development. With their combined experience, financial strength, and strategic foresight, they aim to support high-tech and sustainable manufacturing hubs that could eventually influence industrial policy in the region.
4. Key Takeaways:
• Nippon Steel Trading Corporation has partnered with Viglacera Real Estate Company to expand its industrial park presence in northern & central Vietnam
• Viglacera owns 15 industrial parks covering 4,500 hectares with 28 Japanese companies already operating
• The deal extends a collaboration that began in 2017 at Phu My 3 Specialized Industrial Park
• Both companies will also cooperate in infrastructure development such as power, water, & logistics
• The move targets growing demand from Japanese firms relocating to Vietnam
• Vietnam has attracted over $68 billion in FDI from Japan, solidifying its status as an ASEAN manufacturing hub
