Japan, Vietnam seek deeper partnership with energy and minerals push

HANOI, May 2 (Reuters) – Japanese Prime Minister Sanae Takaichi vowed on Saturday to strengthen bilateral ties with Vietnam, with energy cooperation and critical minerals at the forefront, during a meeting with Vietnamese Prime Minister Le Minh Hung.

The pledge came as new Japanese investment in Vietnam fell about 75% year-on-year to $233 million in the first quarter, even as bilateral trade rose 12.3% to $13.7 billion over the same period, according to Vietnamese government and customs data.

The two leaders discussed ways to deepen the Comprehensive Strategic Partnership established in 2023, focusing on energy, critical minerals, artificial intelligence, semiconductors and space.

“The two sides identified economic security as a new priority area for bilateral cooperation,” Takaichi told reporters after the meeting.

“With regard to critical minerals… both sides agreed to strengthen close coordination to ensure stable supplies and reinforce supply chains,” she added.

In a joint move, Vietnam and Japan signed six agreements encompassing infrastructure, climate action, agriculture, technology, digitalisation, and space cooperation.

Japan remains one of Vietnam’s largest foreign investors, with many Japanese multinationals operating large manufacturing facilities in the country.

Vietnam has been seeking support from Japan and other countries for oil supplies as conflict in the Middle East drives prices higher and disrupts supply chains.

Under the $10 billion Power Asia Initiative to support Asian countries’ energy self-reliance, Japan will assist in arranging crude oil supplies for Vietnam’s Nghi Son Refinery and Petrochemical Complex, Hung said.

Takaichi was also set to meet Vietnam’s Party Secretary and President To Lam on Saturday afternoon and deliver a keynote speech at Vietnam National University, marking a decade since former Prime Minister Shinzo Abe introduced Japan’s “Free and Open Indo-Pacific” strategy.

Her address is expected to emphasise autonomy and resilience for regional nations.

Vietnam supports Japan’s regional initiatives, including the Free and Open Indo-Pacific Vision, aligned with the ASEAN Outlook on the Indo-Pacific, in accordance with international law and “contributing positively to peace, stability, cooperation and development in the region and beyond,” Hung said.

(Reporting by Phuong Nguyen, Thinh Nguyen and Khanh Vu in Hanoi and Tamiyuki Kihara in Tokyo; Editing by Tom Hogue and Stephen Coates)