Japan’s Leader Visits Hanoi to Revive Business Ties

Japanese Prime Minister Sanae Takaichi will travel to Hanoi on Saturday for a meeting with Vietnamese President To Lam. The two leaders aim to strengthen their 2023 Comprehensive Strategic Partnership, which covers energy, technology, minerals and regional peace. Japan still ranks as one of Vietnam’s top foreign investors, with many Japanese companies running large factories there. However, new Japanese investment in Vietnam fell sharply last quarter. The first‑quarter figure dropped about 75 percent from a year earlier, reaching only $233 million. This decline shows that the business climate in Vietnam is becoming more challenging for Japanese firms.During her visit, Takaichi plans to push for a friendlier business environment. She will address problems such as delayed payments on completed projects and the difficulty of securing bids for major infrastructure works. The Japanese government also withdrew from a nuclear power project in Vietnam last year because of tight construction deadlines. Hanoi is reconsidering its ban on petrol‑powered motorcycles in the city centre, a rule that has drawn criticism from Honda. This move could open new opportunities for Japanese automotive companies in Vietnam. Despite investment worries, trade between the two countries remains healthy. First‑quarter imports and exports grew 12. 3 percent, reaching $13. 7 billion according to Vietnamese customs data. Takaichi will also meet with Vietnam’s Deputy Prime Minister Le Minh Hung and speak at Vietnam National University about Japan’s “Free and Open Indo‑Pacific” strategy before heading to Australia.