Japan's PM Takaichi seeks stronger Vietnam ties amid investment slump
Japanese Prime Minister Sanae Takaichi arrives in Hanoi today for high-level talks with Vietnam’s leader, To Lam. The visit aims to strengthen economic and strategic ties between the two nations, despite a recent drop in Japanese investment. Takaichi’s schedule includes meetings with Vietnamese counterpart Le Minh Hung and a speech at Vietnam National University. Discussions will focus on improving Vietnam’s business environment, as Japanese firms face growing challenges in the country.
Trade between Japan and Vietnam has stayed strong, with a 12.3% increase in the first quarter, reaching US$13.7 billion. However, new Japanese investment pledges fell sharply by about 75% year-on-year to US$233 million.
Energy cooperation will also be on the agenda. Japan withdrew from a Vietnamese nuclear project last year due to tight construction deadlines. Meanwhile, Hanoi is reviewing a controversial ban on petrol motorcycles in the city centre, a policy previously opposed by Honda.
The leaders will explore ways to deepen their Comprehensive Strategic Partnership. Key areas include technology, critical minerals, and regional stability, with Japan remaining one of Vietnam’s top foreign investors. The talks come at a time when Japanese investment in Vietnam is slowing. Both sides will seek solutions to boost economic collaboration while addressing concerns from businesses. The outcomes could shape future trade and strategic projects between the two countries.
