HANOI, May 2 (Reuters) – Japanese Prime Minister Sanae Takaichi is set to meet Vietnam’s leader To Lam in Hanoi on Saturday as the countries try to shore up ties amid a sharp slowdown in Japanese investment in Vietnam.
The two sides are expected to discuss ways to deepen a Comprehensive Strategic Partnership established in 2023, with a focus on cooperation in energy, technology, critical minerals and regional stability, a Japanese foreign ministry official said.
Japan remains one of Vietnam’s largest foreign investors, with many Japanese multinationals operating large manufacturing facilities in the country. However, new Japanese investment pledges in the first quarter fell about 75% from a year earlier to $233 million, Vietnamese government data shows.
Takaichi is expected to press for improvements in Vietnam’s business environment and discuss the challenges facing Japanese companies, including delayed payments for completed works and difficulties gaining access to large infrastructure projects, the official said.
Japan last year announced it would withdraw from a nuclear power project in Vietnam, citing an overly restrictive construction timetable.
Days before the visit, Hanoi said it was reconsidering a ban on petrol-powered motorcycles in its city centre, a policy long criticised by Honda.
Despite investment concerns, bilateral trade has remained strong, rising 12.3% from a year earlier to $13.7 billion in the first quarter, according to Vietnamese customs data.
Takaichi is also scheduled to meet her Vietnamese counterpart Le Minh Hung and deliver a speech at Vietnam National University on the evolution of Japan’s “Free and Open Indo-Pacific” strategy, before travelling on to Australia.
(Reporting by Khanh Vu in Hanoi and Tamiyuki Kihara in Tokyo; Editing by Tom Hogue)
