It will be screened with 14 other films in the "Spotlight" category at the festival slated for March 10-19.
It will compete in three categories: ABC TV Award from one of the oldest and most famous television channels in Japan for best new film, Yakushi Pearl Award for best actor, and Audience Award for best film as voted by audiences.
"Sister Sister 2" revolves around the battle for the title of "beauty queen of Saigon" between Ba Tra and Tu Nhi.
As of Jan. 31 the movie, still running in cinemas across Vietnam, had earned more than VND65 billion (US$2.8 million).
The festival has attracted 48 movies from 15 countries and territories, 13 of which will have global premieres.
In the past Vietnamese movies like "Hai Phuong" (Furie), "Co Ba Sai Gon" (The Tailor) and "Chi Chi Em Em" (Sister Sister) have competed.
In 2021 "Chi Chi Em Em" directed by Kathy Uyen won the ABC TV Award.
The festival was instituted in 2005 to support and honor filmmakers from Asian countries.