Japanese Prime Minister Sanae Takaichi and Vietnamese Prime Minister Le Minh Hung met to reinforce bilateral relations, prioritizing energy cooperation and critical minerals supply chains as central themes of their discussions [1]. This meeting comes amid a significant decline in new Japanese investment in Vietnam, which dropped approximately 75% year-on-year to $233 million in the first quarter, despite a 12.3% increase in bilateral trade to $13.7 billion during the same period, according to Vietnamese government and customs data [1].
The leaders agreed to deepen the Comprehensive Strategic Partnership established in 2023, with a focus on economic security, artificial intelligence, semiconductors, and space, in addition to energy and critical minerals [1]. Takaichi emphasized that both countries would strengthen coordination to ensure stable supplies and reinforce supply chains for critical minerals [1].
Six agreements were signed between Japan and Vietnam, covering infrastructure, climate action, agriculture, technology, digitalization, and space cooperation [1]. Japan remains a major foreign investor in Vietnam, with numerous Japanese multinationals operating large manufacturing facilities in the country [1].
Vietnam is seeking support from Japan for oil supplies due to rising prices and supply chain disruptions caused by conflict in the Middle East [1]. Under the $10 billion Power Asia Initiative, Japan will help arrange crude oil supplies for Vietnam's Nghi Son Refinery and Petrochemical Complex, according to Hung [1]. Takaichi was also scheduled to meet with Vietnam's Party Secretary and President To Lam, and deliver a keynote speech at Vietnam National University, highlighting the importance of autonomy and resilience for regional nations [1].
Vietnam expressed support for Japan's regional initiatives, including the Free and Open Indo-Pacific Vision, which aligns with the ASEAN Outlook on the Indo-Pacific and aims to contribute to peace, stability, cooperation, and development in the region [1].
CONCLUSION
Japan and Vietnam are intensifying their strategic partnership, with a particular emphasis on energy security and critical minerals supply chains. Despite a sharp drop in Japanese investment, the signing of multiple cooperation agreements and Japan's commitment to supporting Vietnam's energy needs signal a strengthening of economic and regional ties.