Vietnamese and Japanese officials are working to strengthen diplomatic and economic relationships as Japanese Prime Minister Sanae Takaichi conducts high-level meetings in Hanoi this Saturday with Vietnamese leader To Lam.
The diplomatic visit comes at a crucial time as Japanese business investment in Vietnam has experienced a dramatic decline. According to Vietnamese government statistics, new investment commitments from Japanese companies dropped approximately 75% during the first quarter compared to the same period last year, falling to just $233 million.
A Japanese foreign ministry representative indicated that discussions will center on expanding the Comprehensive Strategic Partnership that both nations established in 2023. Priority areas include collaboration on energy initiatives, technological advancement, critical mineral resources, and maintaining regional security.
While Japan continues to rank among Vietnam’s top foreign investors with numerous multinational corporations running major manufacturing operations throughout the country, Takaichi plans to address specific obstacles that Japanese businesses are encountering. These include delayed compensation for completed projects and restricted access to major infrastructure development opportunities, according to the foreign ministry official.
The business relationship has faced additional setbacks, including Japan’s decision last year to abandon a nuclear energy project in Vietnam due to what officials described as an unreasonably tight construction schedule.
In a potentially positive development for Japanese interests, Hanoi recently announced it is reconsidering its proposed prohibition on gasoline-powered motorcycles in the city center, a policy that Honda had consistently opposed.
Despite the investment challenges, commercial trade between the two countries has shown resilience. Vietnamese customs records indicate bilateral trade increased 12.3% year-over-year to reach $13.7 billion during the first quarter.
Takaichi’s agenda also includes a meeting with Vietnamese counterpart Le Minh Hung and a presentation at Vietnam National University discussing the development of Japan’s “Free and Open Indo-Pacific” diplomatic strategy. Following her Vietnam visit, the Prime Minister will continue to Australia.
