Strengthening Ties: Japan and Vietnam Forge Ahead Amid Investment Slowdown

Japanese Prime Minister Sanae Takaichi will meet with Vietnam's leader To Lam in Hanoi to strengthen their strategic partnership, focusing on energy, technology, and regional stability. Despite concerns over declining Japanese investments, bilateral trade remains robust. Takaichi will also discuss Japan's Free and Open Indo-Pacific strategy in Vietnam.

Japanese Prime Minister Sanae Takaichi is scheduled to meet Vietnam's leader To Lam in Hanoi this Saturday, with the aim of strengthening ties amid declining Japanese investments in Vietnam. Discussions will center around enhancing the Comprehensive Strategic Partnership, with a focus on cooperation in energy, technology, and regional stability, as per a Japanese foreign ministry official.

Despite being a major foreign investor, Japan has seen a 75% drop in new investment pledges in Vietnam, totaling $233 million in the first quarter. Takaichi is expected to address business environment improvements and challenges faced by Japanese companies in Vietnam, including payment delays and access to infrastructure projects.

Japan had previously announced its withdrawal from a Vietnamese nuclear power project due to a restrictive construction schedule. Meanwhile, Vietnam reconsidered a ban on petrol-powered motorcycles in its city center, an issue raised by Honda. Nonetheless, bilateral trade increased 12.3% to $13.7 billion in the first quarter, reflecting resilient economic ties. Prime Minister Takaichi is also set to engage with Vietnamese leaders and present Japan's 'Free and Open Indo-Pacific' strategy at Vietnam National University before her subsequent visit to Australia.