Japan's PM Takaichi seeks to revive economic ties in Vietnam visit

Japanese Prime Minister Sanae Takaichi arrives in Hanoi today for high-level talks with Vietnamese leaders. The visit comes as Japanese investment in Vietnam has dropped sharply, while trade between the two nations continues to grow. Discussions will focus on strengthening economic ties and addressing business challenges faced by Japanese firms. Takaichi’s schedule includes a meeting with Vietnam’s leader To Lam, where both sides will explore ways to deepen their Comprehensive Strategic Partnership. Key topics include energy cooperation, technology transfers, critical minerals, and maintaining regional stability. The talks follow Japan’s withdrawal from a nuclear power project in Vietnam last year, citing an overly tight construction timetable.

The prime minister will also meet Vietnamese Foreign Minister Le Minh Hung and deliver a speech at Vietnam National University. Her visit coincides with a 75% decline in Japanese investment pledges to Vietnam in the first quarter, falling to US$233 million compared to the same period last year. Despite this, bilateral trade rose by 12.3% to US$13.7 billion in the first three months. Hanoi’s recent reconsideration of its petrol-powered motorcycle ban—a policy previously opposed by Honda—may also feature in discussions. Takaichi is expected to push for improvements in Vietnam’s business environment to attract more Japanese investors. After her Vietnam visit, she will travel to Australia.

The meetings aim to rebuild momentum in Japan-Vietnam economic relations. With trade growing but investment lagging, both sides will seek practical solutions to boost cooperation. Takaichi’s visit signals a push to address long-standing business hurdles while reinforcing strategic ties.