What happened?
On 1 May 2026, Japanese Sanae Takainichi arrived in Hanoi for her first visit to Vietnam since becoming the PM. On 2 May 2026, Takaichi met Vietnam’s top leadership, including President To Lam and Prime Minister Le Minh Hung. According to Japan’s Ministry of Foreign Affairs, the two leaders discussed ways to further develop bilateral ties under the Japan-Vietnam Comprehensive Strategic Partnership. The talks focused on economic security, energy, critical minerals, science and technology, artificial intelligence, supply chains, and regional security. Takainichi was also expected to discuss Vietnam’s business environment and how Japanese companies face difficulties gaining access to large infrastructure projects and receiving delayed payments for completed work.
Following the talks, both countries signed and exchanged six bilateral cooperation documents. The areas covered are space technology, climate change adaptation, disaster-resilient infrastructure, and digitalisation.
What is the background?
1. A brief background to bilateral ties
Japan is one of Vietnam’s most important foreign investors. Japanese firms operating in Vietnam work in energy, infrastructure and technology-linked sectors. Investment conditions were one of the main topics of discussion during this visit. Japan’s presence in Vietnam is concentrated in sectors linked to industrial production, energy, urban development and infrastructure. As of January 2026, Japan has 5,722 valid investment projects in Vietnam, totalling USD 78.9 billion in capital. Japanese investment pledges fell by 75 per cent in early 2026 due to concerns over Vietnam's business environment. Key issues included delays in payments for complete work, limited access to large infrastructure projects and regulatory uncertainty.
2. Importance of Critical Minerals and Supply Chains in Japan-Vietnam relations
Critical minerals are a major part of the newer economic security agenda. Japan is seeking to reduce dependence on China for rare earths. Vietnam has rare-earth and gallium resources, but it faces technical challenges in refining them. During the visit, Japan and Vietnam agreed to cooperate on developing mineral supply chains. In recent years, the cooperation has also expanded into higher-value sectors, including green transition projects, semiconductors, and skilled workforce training.
What does it mean?
First, the Japanese PM’s visit has expanded the sphere of bilateral cooperation. Previously, Japan-Vietnam cooperation focused on trade, investment, development aid, and other areas related to economic development. This is now extended further to areas related to economic security, such as critical minerals, energy, semiconductors, AI, space technologies, infrastructure, and other supply chains.
Second, this visit is consistent with Japan's efforts to diversify its supply chains and reduce its dependence on China. In particular, Japan may consider Vietnam an additional source of production facilities for electronics, machinery, automotive, and related industries in Southeast Asia. For Japan, Vietnam’s critical minerals can become valuable to its efforts to secure the raw materials needed for advanced technologies, clean energy sources, and industrial production. As a member state of ASEAN, Vietnam offers Japan opportunities to enhance its regional economic and strategic presence through its FOIP strategy.
Third, for Vietnam, it means attracting investment and developing high-value industries and infrastructure. Strengthening relations with Japan is consistent with Vietnam's general policy practice of developing relations with various partners, both economically and strategically.
