Among the foreign workers Japanese companies seek, demand for Vietnamese talent is surging. According to Ministry of Justice data on foreign residents in Japan, Vietnam ranks second after China. The number of Vietnamese residents has been steadily rising. Behind this trend are the movements of Vietnamese nationals holding Technical Intern Training and Student statuses of residence.

Furthermore, under the new Specified Skilled Worker status of residence, Vietnamese nationals rank first by nationality. As global talent making a major contribution amid Japan’s labor shortages, Vietnamese workers have established a standout position among Asian countries.

Vietnamese Residents Rank Second by Nationality

As of the end of 2020, according to Ministry of Justice data, the ranking of foreign residents in Japan by nationality was:

1st China / 2nd Vietnam / 3rd South Korea / 4th Philippines / 5th Brazil / 6th Nepal / 7th Indonesia / 8th Taiwan / 9th United States / 10th Thailand

The number of Vietnamese residents in second place was 448,053 at the end of 2020, an increase of 36,058 from the previous year, for a growth rate of 8.8%. (Previous year-end 2019: 411,968)

By status of residence, Vietnamese technical intern trainees numbered 208,879, far ahead of China’s 63,741, ranking first.

COVID-19 Had a Major Impact on the Growth Rate of Vietnamese Residents

According to Ministry of Justice data at the end of 2020, the number of foreign residents in Japan was 2,887,116, a decrease of 46,021 from the previous year—the first decline in eight years.

This overall decline was affected by decreases in Vietnamese technical intern trainees and international students due to COVID-19 travel restrictions. The steady flow of Vietnamese talent that had been building has now undergone a major shift.

By status of residence, declines in Technical Intern Training and Student stand out as distinctive features, yet the overall number of Vietnamese residents still increased from the previous year.

In addition, the growth rate for Dependent—covering spouses and children of Vietnamese nationals—is another distinctive movement, indicating a growing tendency among Vietnamese people to seek long-term stays or permanent residence in Japan. Separately, the number who shifted to Designated Activities through status-of-residence changes introduced as COVID-19 measures also increased from the previous year.

Year-on-year change rates by status of residence (%)

・Mid- to long-term residents 448,050 (8.8% increase)
・Permanent Resident 18,472 (7.5% increase)
・Technical Intern Training 208,879 (4.5% decrease)
・Engineer/Specialist in Humanities/International Services 61,181 (18.3% increase)
・Student 65,653 (17.2% decrease)
・Long-Term Resident 5,739 (1.5% increase)
・Dependent 25,961 (20.1% increase)
・Spouse or Child of Japanese National 4,983 (8.3% increase)
・Designated Activities 41,331 (551.0% increase)
・Other 15,851 (131.7% increase)
・Special Permanent Resident 3 (0%)

Factors Behind the Sharp Rise in Vietnamese Residents

Looking back at the flow of Vietnamese residents before COVID-19, the introduction of the Technical Intern Training Program stands out as a factor that started the increase.

Vietnam was among the first countries to join when the Technical Intern Training Program was introduced, becoming the largest sending country for technical intern trainees as of the end of December 2016 (88,213 people). In 2017, a bilateral Memorandum of Cooperation (MOC) on technical intern training was concluded.

The number of Vietnamese residents surged by roughly 300,000 between 2010 and 2018. Meanwhile, Chinese residents, who had previously been numerous, have tended to decline amid China’s economic development, and Vietnamese talent has drawn attention as a primary alternative to Chinese workers.

The Technical Intern Training Program was institutionalized in 1993 and, after repeated legal revisions, underwent major changes from previous law in 2017, leading to growth in Vietnamese technical intern trainees.

Before the movement of technical intern trainees, there was also a flow of Vietnamese international students under the 2008 “300,000 International Students Plan,” with roughly 80,000 accepted over the seven years following the launch of the Abe administration.

Vietnamese Influx Amid COVID-19 Entry Easing Measures

As Vietnamese technical intern trainees and international students surged, cases of illegal work and technical intern trainee disappearances also increased.

While some movement involves deportation for legal penalties, Vietnamese entries into Japan have also continued in some cases. Under the border control measures of the state of emergency in January 2021, Vietnam was listed among countries with eased entry restrictions, and Vietnamese nationals were the most numerous nationality during this period.

Looking at foreign nationals who entered by status of residence, technical intern trainees and international students accounted for 70% of the total. Behind the COVID-19 measures easing entry and exit for business-related persons, there were many cases of entry primarily by Vietnamese technical intern trainees or international students.

Countries permitted entry during this period numbered 11 including Vietnam, and this continued until entry restrictions on January 21.

Trends in Specified Skilled Worker

Under Specified Skilled Worker, Vietnamese residents numbered 9,412 as of the end of December 2020 (an increase of 4,071 from the previous year), ranking first by nationality for this status of residence.

The growth rate for Specified Skilled Worker can also be viewed as unexpected figures due to institutional challenges and the impact of COVID-19. However, considering the trajectory since the introduction of the Technical Intern Training Program, upcoming expected reviews of the Specified Skilled Worker system, transitions from technical intern trainees, and rising awareness of Specified Skilled Worker, it is projected that more workplaces where Vietnamese Specified Skilled Workers can thrive will emerge in the future.

Border control measures between Japan and Vietnam have made it difficult to follow conventional processes. Restrictions in various areas have also changed significantly depending on the infection situation in Japan and Vietnam.

The long-standing partnership between Vietnam and Japan, as well as the contributions of Vietnamese people, are clearly reflected in the data to date. Looking ahead, brighter prospects for Vietnamese talent are once again expected.

※Source: Immigration Services Agency of Japan, Ministry of Justice, based on foreign resident statistics as of the end of December 2020 / Specified Skilled Worker data for December 2020