Japan’s Prime Minister Sanae Takaichi has announced a commitment to strengthen relations with Vietnam, focusing on energy and critical minerals. The announcement came during her visit to Hanoi, where she met with Vietnamese Prime Minister Le Minh Hung on May 2, 2026. Following their discussions, the two leaders formalised six agreements spanning various sectors, including technology, agriculture, and space cooperation.

During the meeting, Takaichi highlighted the new focus on economic security as an essential pillar of the bilateral relationship. She emphasised the need for closer collaboration to enhance stability in supply chains for critical minerals, a move aimed at addressing growing global supply issues.

Vietnam’s Prime Minister Le Minh Hung reiterated the shared perspectives between the two nations, particularly concerning territorial disputes in the South China Sea. Both leaders underscored the importance of resolving these conflicts through diplomatic channels, adhering to international law.

Bilateral Trade and Investment Insights

The discussions between Takaichi and Hung come amidst shifting economic circumstances. Reports indicate a significant decrease in Japanese investment in Vietnam, dropping approximately seventy-five per cent year-on-year to $233 million in the first quarter of the year. Conversely, bilateral trade has experienced a healthy rise of twelve point three per cent, reaching $13.7 billion during the same period, according to data from Vietnamese government and customs authorities.

This contrast highlights the complexity of international investment dynamics, especially as Vietnam seeks to bolster economic ties with various nations. As Japan remains one of Vietnam’s primary foreign investors, the recent downturn in new investments is a concern that both leaders aim to address through enhanced collaboration.

To further assure steady energy supplies, Vietnam is actively seeking assistance from Japan amid rising oil prices influenced by ongoing conflicts in the Middle East. The collaboration is particularly vital as it aligns with both nations’ objectives of ensuring energy security amidst fluctuating global markets.

Japan’s Assistance in Energy Sector Development

As part of the broader cooperation framework, Japan has pledged to support Vietnam’s energy self-reliance through the $10 billion Power Asia Initiative. This initiative aims to enhance energy supplies for Vietnam, specifically for operations at the Nghi Son Refinery and Petrochemical Complex. The backing from Japan is expected to bolster Vietnam’s capacity to manage energy challenges effectively.

Following her official meetings, Takaichi is scheduled to engage with President To Lam, who also holds the title of general secretary of the Communist Party of Vietnam. This meeting is anticipated to further consolidate the diplomatic ties between Japan and Vietnam.

Takaichi is also set to deliver a keynote address at Vietnam National University during her visit. This speech will commemorate a decade since former Prime Minister Shinzo Abe introduced the “Free and Open Indo-Pacific” strategy, which has been instrumental in shaping regional geopolitics and enhancing Japan’s engagement with Southeast Asian nations.

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