Kinh tế Asean: Policy and reality of technology in Japan from 2015 to 2022 and cooperation with Vietnam.

NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATIONAL PROGRAM

ASSIGNMENT
THE ECONOMIES OF ASEAN
TOPIC: POLICY AND REALITY OF TECHNOLOGY
IN JAPAN FROM 2015 TO 2022 AND COOPERATION
WITH VIETNAM.

Student name
Student code
Major
Class
Instructor
Email
Tel
Semeter
Year
Student’s Tel
Student’s Email

: PHAM QUANG VU
: 11207480
: International Economics
: International Economics AEP 62B
: Assoc. Prof. PhD. Nguyen Thuong Lang
: ,

: 0983478486
:1
: 2023-2024

: 0399090028
:

HA NOI, 8/2023


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

DECLARATIONS
The author of the research topic "Policy and reality of technology in Japan
from 2015 to 2022 and cooperation with Vietnam." commits the result of this
study is the process of studying and researching throughout one semester. I assure
that the data in the study is entirely based on reality, reliable, and referential. These
contents are objectively and honestly analyzed and processed.
Hanoi, August 2023
St. Pham Quang Vu

Student: Pham Quang Vu

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

ACKNOWLEDGEMENT
I would like to express my sincere gratitude to Assoc.Prof.Dr. Nguyen

Thuong Lang, who supervised the development of my primary research paper, for
carefully reviewing my work, identifying my errors, and providing practical
solutions to my problems. I am deeply grateful for the guidance, support, and
assistance of my professors, classmates, my friends at National Economics
University and my family, who have played a crucial role in helping me refine and
improve this paper. Their invaluable feedback and suggestions have greatly
contributed to the quality and depth of my work.
I understand the topic “Policy and reality of technology in Japan from
2015 to 2022 and cooperation with Vietnam.” may still have some limitations and
shortcomings. I am eager to receive feedback from the readers and I remain
committed to further refining and enhancing this research.
Thank you!
Hanoi, August 2023
Sincerely,
St. Pham Quang Vu

Student: Pham Quang Vu

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

TABLE OF CONTENT
DECLARATIONS
ACKNOWLEDGEMENT
TABLE OF CONTENT
LIST OF ABBREVATION

LIST OF FIGURES
INTRODUCTION...................................................................................................1
CHAPTER 1: THEORETICAL BASIS................................................................3
1.1 THE THEORETICAL FRAMEWORK OF TECHNOLOGY
POLICIES........................................................................3
1.1.1. The overview of technology......................................................................3
1.1.2. The overview of technological policy.......................................................6
1.2. THE THEORETICAL FRAMEWORK OF INTERNATIONAL
COLLABORATION............................................................................................7
1.2.1. The definition of international collaboration.............................................7
1.2.2. Concept and general theories of international collaboration.....................7
1.2.3. International collaboration in the technology sector.................................8
1.3. THE THEORETICAL FRAMEWORK OF JAPAN.................................9
1.4. THE THEORETICAL FRAMEWORK OF VIETNAM...........................9
CHAPTER 2: THE POLICIES AND REALITY OF TECHNOLOGY IN
JAPAN FROM 2015 TO 2022..............................................................................11
2.1. THE TECHNOLOGICAL POLICIES IN JAPAN FROM 2015 TO
2022............................................................................11
2.2. REALITY OF TECHNOLOGY IN JAPAN FROM 2015 - 2022............13
2.2.1. Technological achievements of Japan from 2015 - 2022........................13
2.2.2. Limitations encountered in the technological development of Japan
during the period 2015 - 2022...........................................................................17
CHAPTER 3: THE INTERNATIONAL COOPERATION POLICIES
BETWEEN JAPAN AND VIETNAM FROM 2015 TO 2022 IN THE
TECHNOLOGICAL SECTOR............................................................................19
3.1. COOPERATION POLICIES BETWEEN JAPAN AND VIETNAM IN
THE PAST..........................................................................................................19
3.2. CORPORATION POLICIES BETWEEN JAPAN AND VIETNAM
FROM 2015 TO 2022.........................................................................................20
3.2.1. Cooperation policies in general between Japan and Vietnam.................20

Student: Pham Quang Vu

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

3.2.2. Cooperation policies in the technological sector between Japan and
Vietnam............................................................................................................21
CHAPTER 4: CONCLUSIONS AND RECOMMENDATIONS......................23
4.1. CONCLUSIONS OF THE TECHNOLOGICAL AND COOPERATION
POLICIES WITH VIETNAM IN JAPAN FROM 2015 TO 2022..................23
4.1.1. Strength of the technological policies in Japan.......................................23
4.1.2. Weakness of the technological policies in Japan.....................................23
4.1.3. Advantages achieved from the policies...................................................24
4.2. RECOMMENDATIONS............................................................................25
4.2.1. Recommendations for Japan...................................................................25
4.2.2. Recommendations for Vietnam...............................................................25
REFERENCES......................................................................................................26

Student: Pham Quang Vu

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

LIST OF ABBREVATION
Abbrevation
AI
CPTPP

Meaning
Artificial Intelligence
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership

DTO

Digital Transformation Office

GDP

Gross Domestic Product

GHG

Greenhouse Gases

ICT

Information & Communications Technologies

IoT

Internet of things

IPO

Initial Public Offering

IT

Information Technology

JICA

Japan International Exploration Agency

METI

Ministry of Trade

ODA

Official Development Assistance

R&D

Research & Development

RCEP

Regional Comprehensive Economic Partnership Agreement

SMEs

Medium-sized Enterprises

STEM

Science, Technology, Engineering and Mathematics

UNESCO

United Nations Educational, Scientific and Cultural Organization

Student: Pham Quang Vu

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

LIST OF FIGURES

Figure 2.1: Exports value of technology trade by business enterprises in Japan from
fiscal year 2011 to 2020 (in trillion Japanese yen)...................................................14
Figure 2.2: Robot density in the world....................................................................15
Figure 2.3: Investors embrace artificial intelligence in Japan in 2017.....................15
Figure 2.4: Global and Domestic Production of the Electronics and IT industy......17
Figure 2.5: The senior employment rate in Japan....................................................18
Figure 3.1: Japanese Investment in Vietnam from 2015 to mid-2019.....................21

Student: Pham Quang Vu

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

INTRODUCTION
I. The urgency of the topic
Technology, with its deep-seated connection to sustenance, economic
growth, and societal well-being, as one of the most fundamental economic
activities, plays a pivotal role in shaping the trajectory of nations' development. In
this context, the case of Japan stands as an intriguing canvas on which the interplay
between technological policy formulation and its real-world manifestation can be
vividly observed. The period spanning from 2015 to 2022 holds particular
significance, as it witnessed a concerted effort by Japan's policymakers to enhance
the performance of its technological sector, address food security concerns, and
foster rural prosperity.
The significance of this era lies in Japan's strategic focus on leveraging
technology to foster economic growth, innovation, and competitiveness. The
intricate interplay between policy formulation and the tangible outcomes in the
technology landscape of Japan underscores the timeliness of this investigation. As
Japan grappled with demographic shifts, economic challenges, and the need for
sustainable development, its technological policies assumed center stage in driving
solutions.
Japan's pursuit of technological excellence resonates with the global
imperative of harnessing innovation for sustainable development. The collaborative
dimension with Vietnam imparts a distinctive flavor to this exploration. This

partnership reflects the growing recognition of the cross-border synergy required to
address complex technological challenges. The experience of Japan, a technological
leader, joining forces with Vietnam, a rapidly emerging economy, presents a
dynamic case study of how mutual collaboration can propel technological progress.
Moreover, the juxtaposition of Japan's domestic technological policies with
its cooperative efforts with Vietnam encapsulates the multi-faceted nature of
modern technology integration. It underscores the interconnectedness of global
economies, the transferability of knowledge, and the shared pursuit of common
goals. As technology continues to shape the trajectory of nations, economies, and
societies, understanding the nuances of policy implementation, outcomes, and
cross-border collaborations is not only insightful but imperative. so I decided to
choose the topic: “Policy and reality of technology in Japan from 2015 to 2022
and cooperation with Vietnam.”
In the subsequent sections of this study, I will unravel the intricate layers of
Japan's technological policies, their real-world manifestation, the collaborative
dynamics with Vietnam, and the broader implications for shaping a technologically
Student: Pham Quang Vu

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Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

driven future. This exploration is not only academically enlightening but also
presents practical implications for policymakers, industry leaders, and global
stakeholders who are invested in the transformative power of technology.

II. Target implementation
This assignment is to examine the policy and reality of technology in Japan
from 2015 to 2022 and its cooperation with Vietnam. By examining the alignment
between policy intent and actual on-the-ground realities, the study seeks to shed
light on the successes, challenges, and potential gaps in the implementation of
technological policies. Furthermore, the investigation will delve into the bilateral
collaboration between Japan and Vietnam in the technological domain, exploring
the extent to which this partnership has contributed to knowledge exchange,
technological transfer, and sustainable technological practices.
III. Objectives and scope of the study
The primary objectives of this study include:
Evaluation of Technological Policies: Assessing the formulation,
objectives, and mechanisms of Japan's technological policies during the specified
period.
Policy-Reality Nexus: Analyzing the extent to which implemented policies
align with actual technological practices, production outcomes, and development.
Vietnam Collaboration: Investigating the positive impact of technological
cooperation between Japan and Vietnam from both two sides.
Conclusions and recommendations for Vietnam and Japan: By
implementing these recommendations, both Vietnam and Japan can further leverage
their strengths and foster a mutually beneficial technological partnership.
IV. Research method
To achieve the aforementioned objectives, this study will adopt a mixedmethods research approach. It will involve an in-depth review of relevant policy
documents, reports, and scholarly literature to gain a comprehensive understanding
of the policy landscape. Additionally, the data including references, tables, and
charts… is collected from trusted sources from World Bank, IMF, Brunei policy
and some reports from other countries.
V. Structure of the topic
In addition to the introduction, the end, the table of contents, and the list of
references, the topic is presented in 4 chapters:

Chapter 1: Theoretical basis
Chapter 2: The policies and reality of technology in Japan from 2015 to 2022
Chapter 3: The international cooperation policies between Japan and
Vietnam from 2015 to 2022 in the technological sector

Student: Pham Quang Vu

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Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

Chapter 4: Conclusions and recommendations.

CHAPTER 1: THEORETICAL BASIS
1.1 THE THEORETICAL FRAMEWORK OF TECHNOLOGY POLICIES
1.1.1. The overview of technology
1.1.1.1 Definitions
Technology, regarded as one of the most ancient and fundamental human
pursuits, assumes a pivotal stance in shaping societies, economies, and the global
environment. Within the context of international integration, technology can be
construed as an assemblage of tools, methodologies, and procedures utilized for the
production of goods and services, thereby engendering economic growth and
augmenting production efficiency. Technology transcends mere apparatus and
machinery, encompassing organizational processes, management, and
communication pertinent to technology application and development.

Technology is commonly apprehended as a constellation of processes,
techniques, apparatus, and knowledge applied to address challenges, ameliorate
operational efficacy, engender novel products or services, and revolutionize how
human beings interact with the surrounding world. This may involve innovative
approaches to harness both natural and artificial resources in the pursuit of specific
objectives.
Technology is subject to transformation and evolution over time, contingent
upon the advancements in science, engineering, and the impact of the business,
social, and cultural milieu. It can yield far-reaching repercussions and reverberate
across multifarious domains, encompassing the realms of economics, healthcare,
education, and society at large.
There are several different types of technology, including:
Information Technology (IT): This encompasses the use of computers,
software, and telecommunications systems to manage and process information. IT
has revolutionized communication, data management, and decision-making
processes, enabling efficient information exchange on a global scale.
Biotechnology: Biotechnology involves the application of biological
processes, organisms, or systems to develop products or services. It spans a wide
range of applications, from genetic engineering to pharmaceutical development and
agricultural advancements.
Nanotechnology: Nanotechnology deals with manipulating matter at the
atomic and molecular levels. It enables the creation of new materials and devices
with enhanced properties, impacting sectors such as electronics, medicine, and
materials science.

Student: Pham Quang Vu

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Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

Green Technology (Clean Technology): Also known as eco-friendly or
sustainable technology, this type focuses on creating solutions that minimize
environmental impact. It encompasses renewable energy sources, waste reduction,
and efficient resource utilization.
Transportation Technology: This category encompasses innovations in
transportation methods, from traditional vehicles to emerging concepts like electric
and autonomous vehicles. Transportation technology aims to enhance efficiency,
safety, and environmental sustainability.
Healthcare Technology: Healthcare technology involves tools and systems
used in medical diagnosis, treatment, and patient care. This includes medical
devices, electronic health records, telemedicine, and medical imaging technology.
Space Technology: Space technology involves the development of
technology for space exploration, satellite communication, and scientific research
beyond Earth's atmosphere. It has led to advancements in satellite navigation,
weather forecasting, and global communication networks.
Communication Technology: Communication technology refers to systems
and tools facilitating information exchange between individuals or groups. This
includes telecommunications networks, internet technologies, and social media
platforms.
Manufacturing Technology: Manufacturing technology encompasses
techniques and equipment used in production processes, such as automation,
robotics, and 3D printing. It enhances efficiency, precision, and customization in
manufacturing industries
Energy Technology: Energy technology focuses on the generation, storage,

and distribution of energy. It includes renewable energy sources like solar and wind
power, as well as advancements in energy storage and grid management
Agricultural Technology: Agricultural technology involves innovations
aimed at improving agricultural practices and food production. This includes
precision farming, biotechnology in crop breeding, and sustainable farming
techniques. These diverse types of technology collectively shape the modern world,
influencing economic development, social interactions, and the quality of life for
people around the globe
1.1.1.2. The importance of technology
In our interconnected world, technology has revolutionized communication.
Digital platforms, social media, and instant messaging have enabled us to connect
with people globally, transcending geographical boundaries and fostering
relationships that would have been unimaginable in the past.
In the context of the economy, technology acts as a catalyst for growth and
innovation. It streamlines processes, making businesses more efficient and
responsive. Automation, data analytics, and artificial intelligence enhance

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Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

productivity, enabling companies to produce more with fewer resources. This
heightened efficiency not only boosts profitability but also contributes to economic

expansion.
Furthermore, technology fuels innovation by opening up new avenues for
creativity and problem-solving. Industries are constantly evolving as technological
breakthroughs lead to novel products, services, and business models. This
innovation not only enriches consumer experiences but also creates new
opportunities for entrepreneurship, job creation, and economic diversification.
In the global arena, technology enhances a nation's competitiveness.
Countries that invest in technology and foster a culture of innovation are better
positioned to excel in the global market. Cutting-edge products and services find a
receptive international audience, driving exports and attracting foreign investment.
As a result, technology becomes a cornerstone of economic resilience and growth
on a national scale.
However, while technology brings numerous benefits, it also presents
challenges, such as job displacement due to automation and concerns about data
security and privacy. Striking a balance between harnessing the advantages of
technology and addressing its potential drawbacks is crucial for sustainable
economic development.
1.1.1.3. Factors affecting technological development
Technological development is shaped by an intricate interplay of several key
factors, each playing a crucial role in steering its trajectory. These main factors
encompass:
Institutional Framework, Mechanisms, and Environment: The regulatory and
institutional environment greatly influences technological progress. Government
policies, intellectual property regulations, and innovation incentives dictate the
climate for research and development. A conducive ecosystem encourages
investment and fosters innovation.
Human Capital: Human ingenuity and expertise drive technological
breakthroughs. Skilled individuals, from scientists to engineers, are the driving
force behind innovation. A well-educated workforce equipped with knowledge and
skills is essential for translating ideas into tangible technological advancements.

Resource Allocation: Adequate resources, both financial and material, are
pivotal for research and development. Investments in technology facilitate
experimentation, prototyping, and implementation. Proper allocation of resources
accelerates the journey from concept to reality.
Infrastructure: Robust infrastructure, encompassing physical and digital
elements, is a cornerstone of technological growth. Access to reliable electricity,
high-speed internet, and advanced laboratories provide a fertile ground for
innovation to flourish.

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Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

Integration Capability: The ability to integrate and connect with global
networks plays a pivotal role. Openness to international collaboration, cross-border
knowledge exchange, and trade partnerships accelerate technological progress by
pooling expertise and resources.
Government's Technological Governance Competence: The government's
capacity to effectively manage and regulate technology plays a critical role.
Effective policies, regulatory frameworks, and strategic planning enable technology
to thrive while addressing ethical, security, and societal considerations.
1.1.2. The overview of technological policy
1.1.2.1. Definition

The policy is a set of ideas or a plan of what to do in particular situations that
have been agreed to officially by a group of people, a business organization, a
government, or a political party. Technological Policy covers a wide range of issues
that deal with regulating or moderating the development and deployment of
emerging technologies - ideally to ensure that they are in line with the public
interest.
1.1.2.2. The importance of technological policy
Technological policy acts as a guiding compass, shaping the direction and
pace of innovation, while also ensuring that the benefits of technology are harnessed
while minimizing potential risks and drawbacks.
First and foremost, technological policy provides a structured framework for
fostering innovation. By offering incentives, research grants, and tax breaks,
governments can encourage private and public entities to invest in research and
development, thereby driving progress across sectors. These policies stimulate the
creation of cutting-edge technologies that enhance efficiency, improve lives, and
contribute to economic growth.
Furthermore, technological policy addresses critical issues related to ethics
and social impact. As advancements like artificial intelligence and biotechnology
become increasingly integrated into our lives, policy frameworks ensure responsible
development, usage, and integration. This prevents the misuse of technology and
guards against potential ethical dilemmas.
In addition, technological policy plays a pivotal role in addressing digital
inclusion and equality. By promoting access to technology, especially in
underserved communities, policies ensure that the benefits of innovation are
accessible to all. This inclusivity contributes to reducing societal disparities and
fostering a more equitable society.
Moreover, technological policy is essential in safeguarding data privacy and
security. Regulations related to data protection, cybersecurity, and user consent help
in mitigating the risks associated with the digital age. These policies protect

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Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

individuals and organizations from data breaches and unauthorized use of
information.
Lastly, technological policy bolsters a nation's competitiveness on the global
stage. By nurturing an environment conducive to research, development, and
innovation, countries can position themselves as leaders in emerging technologies.
This not only attracts foreign investment but also fosters an ecosystem of talent and
creativity.
1.1.2.3. Key components of technology policies
Innovation and Research Funding: At the heart of any technological policy is
the provision of incentives and funding mechanisms that nurture innovation and
research. Financial support, grants, and tax incentives stimulate investment in
research and development, fostering the creation of breakthrough technologies.
Ethical Framework and Regulation: A robust technological policy includes a
well-defined ethical framework and regulatory guidelines that govern the
development and application of new technologies. These safeguards ensure that
technological advancements align with ethical values and prioritize the well-being
of society.
Digital Inclusion and Accessibility: To promote equitable progress,
technological policies must address digital inclusion. Measures aimed at reducing

the digital divide, ensuring affordable access to technology, and promoting digital
literacy programs empower all segments of society to benefit from technological
advancements.
Data Privacy and Security: In an era of data-driven innovation, policies must
safeguard individuals' privacy and data security. Regulations that govern the
collection, storage, and use of personal data protect against misuse and foster trust
in technology.
Education and Workforce Development: A skilled workforce is essential for
harnessing the potential of technology. Technological policies should emphasize
education in science, technology, engineering, and mathematics (STEM), while also
encouraging ongoing workforce development to adapt to the evolving landscape.
1.2. THE THEORETICAL FRAMEWORK OF INTERNATIONAL
COLLABORATION
1.2.1. The definition of international collaboration
International collaboration in research refers to the cooperative efforts among
researchers, institutions, and organizations across different countries to jointly
address complex challenges, share knowledge, and achieve common goals. This
collaborative approach transcends geographical boundaries and leverages diverse
expertise to advance scientific understanding, technological innovation, and societal
progress.
1.2.2. Concept and general theories of international collaboration

Student: Pham Quang Vu

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Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

International collaboration is grounded in the idea that combining diverse
perspectives and resources can lead to more comprehensive and impactful
outcomes. It involves the exchange of knowledge, skills, and resources among
researchers and institutions from different nations. This concept emphasizes the
importance of breaking down silos, fostering open communication, and pooling
intellectual capital to solve global issues. Several theories underpin the concept of
international collaboration:
Network Theory: This theory posits that interconnected networks of
researchers and institutions enhance the flow of information and innovation.
Collaboration networks provide a platform for sharing ideas, expertise, and
resources, thereby accelerating the research process and yielding more significant
breakthroughs. Resource
Dependence Theory: This theory emphasizes the mutual benefits of
collaboration, as organizations often lack certain resources that others possess.
Collaborative partnerships help bridge resource gaps and enable more efficient
utilization of available assets.
Institutional Theory: Institutions play a crucial role in shaping collaborative
behavior. International agreements, treaties, and policies create a supportive
framework for cross-border collaboration by establishing norms, guidelines, and
incentives for cooperation.
1.2.3. International collaboration in the technology sector
In the technology sector, international collaboration takes on unique
significance due to its rapidly evolving nature and the need for specialized
knowledge. Some overarching theories that drive international collaboration in
technology include:
Open Innovation Theory: This theory suggests that organizations can
accelerate innovation by collaborating with external partners, such as universities,

research institutions, and other companies. Sharing ideas and co-developing
solutions with global counterparts can lead to faster technological advancements.
Global Value Chain Theory: In a technology-driven world, products and
services are often created through complex global value chains involving various
countries. Collaborating with partners along these value chains enables each
participant to focus on their strengths, leading to more efficient and high-quality
outcomes.
Knowledge Spillover Theory: This theory asserts that knowledge gained in
one context can spill over and benefit others. Collaborating internationally allows
for the transfer of knowledge across borders, leading to the adoption of best
practices and the avoidance of redundant research efforts.
International collaboration in research and the technology sector is a strategic
approach that harnesses the power of global expertise to address complex

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Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

challenges and advance innovation. Grounded in theories of networking, resource
sharing, and institutional frameworks, such collaborations are essential for driving
progress and finding solutions to global challenges.
1.3. THE THEORETICAL FRAMEWORK OF JAPAN
Japan, situated in East Asia, is a nation renowned for its blend of rich

traditions and cutting-edge advancements. With a land expanse of 377,972.28
square kilometers, positioning it at the 62nd global ranking, and has a population of
approximately 126 million people. Japan stretches from the northern Okhotsk
coastline to the southern reaches of the East China Sea, adjoining the maritime
realm of China. Its eastern frontier forms a junction with the Korean Peninsula and
Russia, establishing a propitious setting for trade interactions. Distinctively, Japan
claims the distinction of housing the world's most extensive collection of islands,
numbering nearly 7,000 landmasses. Of these, five major islands predominate:
Honshu, Hokkaido, Kyushu, Shikoku, and Okinawa, bearing the weight of
substantial populations.
Amidst lush landscapes adorned with verdant foliage and thriving flora,
Japan's natural splendor ranks it among the world's top ten most beautiful nations.
However, this picturesque canvas is not untouched by nature's capricious
temperament. Annually, Japan bears the weight of hundreds of earthquakes,
volcanic eruptions, and varying scales of tsunamis. Such tumultuous upheavals
have, at times, seemed poised to erase Japan from the global map. Yet, driven by
resolute determination and an unyielding spirit, the nation's populace unites to
construct and safeguard their homeland.
Enduring a litany of natural calamities and grappling with scarce natural
resources and minerals, Japan remains an unmatched leader in global scientific and
technological advancements. Ranking second globally in terms of gross domestic
product (GDP), the nation also claims the fifth spot in defense expenditures.
Furthermore, Japan excels as the world's fourth-largest exporter and sixth-largest
importer. An active permanent member of the United Nations, Japan defies
adversities to contribute significantly to the international community.
1.4. THE THEORETICAL FRAMEWORK OF VIETNAM
Vietnam, a Southeast Asian nation, boasts a rich history and a diverse
cultural heritage. With a population of over 100 million people, Vietnam is one of
the most populous countries in the region. Its land area spans approximately
331,210 square kilometres, encompassing a variety of landscapes from lush forests

to coastal plains. Vietnam's history is marked by centuries of cultural exchange and
struggle for independence. The country's geography has played a significant role in
shaping its identity, with its long coastline along the South China Sea influencing
trade, fishing, and cultural interactions.

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Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

In recent decades, Vietnam has undergone remarkable economic growth and
development. The shift from a centrally planned economy to a socialist-oriented
market economy has spurred rapid changes. The country has emerged as a
manufacturing hub, attracting foreign investment and becoming a major player in
global supply chains. Its textile, electronics, and agricultural sectors have been
instrumental in driving economic growth. The Vietnamese government's initiatives
in education and technological development have led to a growing pool of skilled
labour, contributing to the country's rise as a technology and outsourcing
destination. The young and dynamic workforce, along with a growing middle class,
has fueled domestic consumption and entrepreneurship.
Vietnam's rich cultural tapestry is evident in its diverse traditions, cuisine,
and festivals. The nation's UNESCO-listed sites, such as the ancient town of Hoi An
and Ha Long Bay, draw tourists from around the world. Despite its progress,
Vietnam faces challenges related to environmental sustainability, urbanization, and

income inequality. In international affairs, Vietnam maintains diplomatic relations
with countries across the globe, actively engaging in regional and international
organizations. The country's participation in free trade agreements and its hosting of
major summits reflect its role in global diplomacy. As Vietnam continues to
navigate the complexities of modernization, it remains rooted in its history and
traditions, striving to strike a balance between economic growth, cultural
preservation, and social progress.

Student: Pham Quang Vu

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Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

CHAPTER 2: THE POLICIES AND REALITY OF TECHNOLOGY IN
JAPAN FROM 2015 TO 2022
2.1. THE TECHNOLOGICAL POLICIES IN JAPAN FROM 2015 TO 2022
Japan has always pursued proactive industrial and technology policies. In the
last years, however, the prime minister’s cabinet has made science and technology
policy a key component of its development strategy, to leverage innovation to kickstart faster growth. To deal with current issues, Japanese policies have expanded to
encourage digital and societal innovation through targeted policies such as the
Society 5.0 strategy, the Smart Japan ICT strategy and Healthcare 2035.
METI Digital Transformation Initiatives: The Digital Transformation Office
(DTO) in the Ministry of Trade (METI) is focused on the digitalisation of the
administration and the provision of digital services for businesses. One of the

initiatives of DTO is the creation of a unified authentication system by IPO, named
‘gBizID’, a single-sign-on system for businesses to access METI’s digital services
since 2019. Its usage will be expanded to other ministries from 2020 onwards. The
Japanese government is also offering and expanding financial support to SMEs
which want to invest in new technologies and use public procurement to boost
innovation in SMEs. The SMEs Agency in METI has developed a portal for SMEs
called ‘Mirasapo Plus’ which was launched in April 2020. This all-in-one portal
provides SMEs with information on the supports available for them and how to
apply for government services, as well as provides data for the government to
finetune its policies.
Society 5.0: The Society 5.0 strategy is a central component of the Abe
government’s growth strategy, a way to leverage innovation to propel Japan beyond
the low growth trap of the last decades. A key element of the 5th Science and
Technology Basic Plan, Society 5.0 is a vision of a super smart society that can
resolve various social challenges by incorporating the innovations of the fourth
industrial revolution (including the Internet of Things (IoT), Big Data, Artificial
Intelligence (AI), Robotics and the sharing economy) into every industry and social
life. The ‘cyber-physical system’, in which cyberspace and the physical space are
tightly integrated, is expected to become a pervasive technological mode supporting
Society 5.0. Leveraging the power of technology, Japan is expected to overcome
social challenges such as the decrease in productive-age population and
environmental issues. Society 5.0 is projected to bring solutions to the current
challenges in healthcare, mobility, infrastructure and financial technologies
(fintech).
Artificial Intelligence (AI) Technology Strategy, 2019: In 2016, the Japanese
government established an ‘Artificial Intelligence Technology Strategy Council’
considering it as Japan’s key pillar for Society 5.0. It characterises AI as a service
Student: Pham Quang Vu

11

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

and foresees three phases for AI development and use: (1) expanding use of datadriven AI in each service domain, (2) general use of AI and data across services,
and (3) the formation of ecosystems through a complex merger of these services.
The AI strategy was updated most recently in 2019 targeting five designated
priority areas (manufacturing, transportation and logistics, health and medical care,
agriculture and disaster response). An important goal is also to use AI to help solve
major societal problems like an ageing society or labour shortage, diversification of
energy sources, GHG (greenhouse gas) reduction or more efficient waste
management, which lines up perfectly with achieving Sustainable Development
Goals. The Japanese government recognises that data is a necessary enabling
condition for AI and is investing in the development of a data linkage infrastructure.
All the practical applications of AI planned in the new AI Strategy are designed as
two-way data flows – one direction is technology and data deployment into the
industry area and the other is the data gathered from users feeding further
development of AI. Among high-profile AI initiatives, we should mention the
Artificial Intelligence ‘boy’ who was granted residency in Tokyo, Japan, in
November 2017. The AI system is a chatbot programmed to act like a seven-yearold boy named Mirai, which is part of a project aimed at making local government
more familiar and accessible to locals. The chatbot is available to listen to the
opinions of Shibuya residents. In 2018, METI opened a portal website for the
‘Future Classroom-Learning Innovation’ project which aims to broadly convey to
the public the progress in a series of demonstration projects, and information on the
latest trends in EdTech at home and abroad. This project aims at raising awareness
in Japanese society about the need to coexist with Artificial Intelligence (AI).

Smart Japan ICT: Strategy This strategy was launched in 2014 by the
Ministry of Internal Affairs and Communication and is based on two main pillars, a
national strategy to create innovation through pervasive ICT-based connectivity and
an international strategy to promote Japan’s global competitiveness and outreach in
ICT. Both pillars aim at promoting economic growth and the Japanese contribution
to international society through innovation by ICT. The strategy includes
investments in ICT infrastructures and skills, as well as multiple initiatives (priority
projects) addressing sectors such as smart cities and smart agriculture. One of the
strategic goals was to realise the world’s most advanced ICT environment for
Tokyo 2020 Olympic and Paralympic Games, postponed because of the Covid-19
pandemic to 2021. Smart Agriculture is a key component of this strategy. Growing
concerns over agricultural sustainability, including forecasted water shortages by
2030, compelled Japan to develop a digital farming technology. By leveraging the
Internet of Things and Artificial Intelligence to collect and analyse data from
farming practices and the surrounding environment, this technology enables to
improve agricultural productivity even in areas with limited access to water. This

Student: Pham Quang Vu

12

Class: International Economics AEP 62B


Asean global economy assignment

Instructor: Assoc. Prof. PhD. Nguyen Thuong Lang

technology is expected to bring a huge change to the future of sustainable
agriculture.

Japan Healthcare 2035 – Leading the world through health: Japan
Healthcare 2035 is a vision for the health system in the next 20 years promoted by
the Ministry of Health, Labour and Welfare. The vision starts from the recognition
that increasing healthcare needs and costs cannot be managed through simple
financial adjustments. Healthcare 2035 aims at transforming the healthcare system,
leveraging the advances in medical technology to respond to the needs of all
lifestyles and all people. The vision foresees each citizen to be empowered to realise
their full wellness potential and take ownership of their health needs. A priority
objective is to deal with the issues raised by a rapidly ageing population and achieve
sustainability of the system. This means a paradigm shift to a multidimensional
health network able to deal with social needs not only from the medical point of
view but also concerning aspects such as access to housing, community building
and employment. This paradigm shift means transforming the health system
priorities from quantity to quality, from inputs to value, from government regulation
to autonomy, from cure to care, and from fragmentation to integration.
Green Growth Strategy: The Ministry of Economy, Trade and Industry
(METI) has updated the ‘Green Growth Strategy Through Achieving Carbon
Neutrality in 2050’. The strategy leads to sustainable growth and innovation by
incorporating all necessary policies into the effort. It will further raise the feasibility
of achieving a carbon-neutral society by 2050. The government will accelerate
structural changes in the energy and industry sectors, and bold investments to make
innovation. ‘The Green Growth Strategy’ will produce and direct all available
policies, including a budget, taxation, finance, regulatory reforms/standardisation
and international cooperation towards that goal. This will support the forwardlooking challenges of companies, such as making bold investments to make
innovation and realise transformation in the industrial structure and social economy.
To trigger a spiral of innovation, the strategy focuses on the following two points:
updating policy measures and goals to be achieved in each area and presenting
benefits to people’s lives, in addition to decarbonisation effects.
Under the over-arching umbrella of the ‘Society 5.0’ vision, the Japanese
government continue launching several initiatives to promote the emergence of an

ultra-smart society. In this vision, all things will be connected through IoT
technology and all technologies will be integrated, thereby improving the quality of
living.
2.2. REALITY OF TECHNOLOGY IN JAPAN FROM 2015 - 2022
2.2.1. Technological achievements of Japan from 2015 - 2022
During the period from 2015 to 2022, Japan has achieved remarkable
advancements in various technological domains. These achievements are

Student: Pham Quang Vu

13

Class: International Economics AEP 62B