After more than 50 years of diplomatic relations, what key factors do you believe have enabled Vietnam and Japan to build a relationship that has remained strong and resilient, and increasingly grown deeper over time?
In May this year, Japanese Prime Minister Takaichi Sanae paid her first visit to Vietnam since taking office. The visit yielded significant outcomes, with leaders from Japan and Vietnam agreeing to further deepen bilateral ties under the Comprehensive Strategic Partnership (CSP).
At Vietnam National University, Hanoi, Prime Minister Sanae delivered a foreign policy address regarding the evolution of the Free and Open Indo-Pacific (FOIP) vision, as ten years have passed since it was launched by Japan to foster peace, stability, and prosperity across the region. She emphasized that in order to realize the FOIP vision, it is essential for Japan and Vietnam to continue to uphold the principles of freedom, inclusiveness, and the rule of law, and to enhance the strategic autonomy and resilience of both countries.
In this context, she highlighted the need for closer collaboration on economic security, including energy, resilient supply chains for critical materials, agriculture, and food security. In the security sphere, Japan reaffirmed its commitment to expanding cooperation through Japan’s Official Security Assistance (OSA) framework and helping strengthen Vietnam’s maritime law enforcement capabilities.
Over recent years, Vietnam has raised its international status. Amid growing uncertainty in the global landscape, Vietnam hosted the third ASEAN Future Forum in June. Japan welcomes Vietnam’s increased contribution to regional peace and stability. At the Forum, Japanese Minister of Foreign Affairs Motegi Toshimitsu delivered a message reaffirming Japan’s solidarity with Vietnam and its initiatives.
We paid close attention to Party General Secretary and State President To Lam’s keynote speech at the Shangri-La Dialogue in Singapore in May. He emphasized the need to promote rules-based dialogue, the importance of human security - a concept that has been championed by Japan - the prioritization of preventive diplomacy, and ASEAN centrality as essential pillars for addressing the complex challenges facing the international community.
Which areas still hold the greatest potential for Vietnam and Japan to further strengthen their cooperation in the years ahead?
The key to Vietnam’s future development lies in advanced sectors such as energy, semiconductors, and AI. During Prime Minister Sanae’s visit to Vietnam, the leaders of the two countries designated these sectors as new pillars of bilateral cooperation and reaffirmed their shared determination to deepen their collaboration.
In the energy sector, Japan will continue to work with Vietnam to implement National Power Development Plan VIII (PDP8), which charts the country’s path toward carbon neutrality by 2050. Through the Asia Zero Emission Community (AZEC) initiative, Japan plans to invest approximately $20 billion in 15 pilot projects covering renewable energy and LNG power generation. To facilitate their implementation, we hope Vietnam will establish a regulatory framework that enhances project bankability and enables stable long-term cost recovery.
In the semiconductor sector, Japan will contribute to the Vietnamese aim of training 500 PhD graduates in the field by 2030 through accepting some 250 researchers under the NEXUS international joint research program. Including the program’s second call for proposals this year, Japan will provide funding for up to 15 collaborative research projects between universities in Japan and Vietnam.
Meanwhile, Vietnam Japan University (VJU) launched its Semiconductor Chip Technology program last year and currently has 106 students enrolled. From September 20 to 23 this year, the Vietnam-Japan Semiconductor Symposium 2026 will take place in Hanoi, co-organized by VJU, the Hanoi University of Science and Technology, and other institutions. I hope that the symposium will serve as a platform for expanding bilateral cooperation in research, education, human resources development, and industry-academia collaboration.
In the AI area, during her visit to Vietnam in May, Prime Minister Sanae also introduced an AI program loan package following her talks with Prime Minister Le Minh Hung. The package combines financial assistance with cutting-edge technologies from Japanese companies and aims to support the development of a large language model (LLM) that reflects the Vietnamese language and its cultural characteristics.
Japan also seeks closer cooperation on copyright and intellectual property protection. As Vietnam leverages its cultural industries to drive economic growth and enhance its soft power, copyright protection remains a significant challenge.
According to a survey conducted last year by Japanese copyright holders, piracy websites hosting unauthorized manga have caused an estimated VND1,400 trillion ($53.69 billion) in annual losses to Japanese rights holders. Japan will continue cooperating with Vietnam to combat copyright infringements. On July 30, Japan’s Agency for Cultural Affairs will hold a copyright protection seminar in Hanoi to step up efforts against piracy websites and improve intellectual property protection.
Vietnam is serving as Chair of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) this year and is scheduled to chair the Asia-Pacific Economic Cooperation (APEC) forum next year. As Vietnam continues to deepen its international integration, Japan looks forward to working closely with the country to contribute to regional growth and prosperity.
Japan is one of Vietnam’s largest foreign investors, with total investment exceeding $80 billion. In your view, what are the key advantages that have made Vietnam an attractive destination for Japanese businesses in recent years?
Japan’s approved investment in Vietnam reached $3.1 billion last year, increasing by around 20 per cent from the previous year and bringing cumulative investment to $80 billion. Annual bilateral trade surpassed $50 billion for the first time, representing a 1.8-fold increase over the past decade.
According to a survey conducted by the Japan External Trade Organization (JETRO), nearly 70 per cent of Japanese companies operating in Vietnam expect to be profitable, and about 60 per cent intend to expand their operations in the country over the next one to two years.
Vietnam has sustained strong economic momentum in recent years. In 2025, its economy expanded by 8.02 per cent - the highest growth rate in Southeast Asia - and the government is now targeting double-digit growth over the next five years. This momentum has further reinforced the country’s appeal as a destination for foreign investment.
Under the strong leadership of Party General Secretary and State President To Lam, Vietnam has adopted a “new growth model” that emphasizes the role of the State-led sector and State-owned enterprises while prioritizing science and technology, innovation, AI, semiconductors, digital transformation, green transformation, and private sector development.
The development of strategic infrastructure, including urban railway networks, will enhance opportunities for foreign companies investing in Vietnam to further expand their business operations. With a population of around 100 million and a median age of just 34, Vietnam offers a young, highly-skilled workforce, making it an increasingly attractive destination for foreign investment.
Japan welcomes the new possibilities for expanding the bilateral economic partnership created by Vietnam’s ongoing reform agenda under the leadership of Party General Secretary and State President To Lam. We hope that these reforms will streamline administrative procedures, accelerate licensing and approval processes, delegate greater authority to local governments, enhance transparency in the formulation of laws and regulations, and improve the effectiveness of official development assistance (ODA).
One of the challenges Japanese companies are facing is the bankability of pilot investment projects under the AZEC initiative. We hope the necessary regulatory and financial conditions will be put in place so that these projects can secure financing and deliver stable long-term returns.
The issuance of Politburo Resolution No. 10-NQ/TW in June also underscored Vietnam’s determination to attract more foreign investment while moving toward higher value-added growth. The Resolution seeks to facilitate technology transfer through joint ventures and mergers and acquisitions (M&As) between Vietnamese and foreign companies, while encouraging the growth of startups.
We believe these initiatives will open up new opportunities for Japanese companies to contribute their technologies and expertise to Vietnam’s development. We also intend to follow up on the implementation of the Resolution through ongoing dialogue with Vietnam’s leadership and Japanese companies.
As Vietnam’s development priorities evolve from infrastructure toward the green transition, digital transformation, and innovation, how will Japan’s ODA policy for Vietnam evolve to support these new priorities?
Japan was the first country to start an ODA program to Vietnam, in 1992, and has since remained its largest bilateral donor, playing a central role in the country’s socio-economic development. As of 2025, Japan’s cumulative ODA to Vietnam amounted to approximately JPY3 trillion ($18.6 billion) in JPY loans, about JPY200 billion ($1.24 billion) in grant aid, and roughly JPY200 billion ($1.24 billion) in technical cooperation.
Over the years, Japan has combined financial assistance for essential infrastructure with technical cooperation in human resources development and institutional capacity building, laying a solid foundation for Vietnam’s development.
As Mr. Tanaka Akihiko, President of the Japan International Cooperation Agency (JICA), noted during his meeting with Prime Minister Hung in June, Japan will align its ODA with Vietnam’s new growth model by concentrating on four priority areas: science and technology, innovation, and digital transformation; business growth and deeper integration into global value chains; the investment environment; and strategic infrastructure.
Strategic infrastructure development will remain a key priority for Japanese ODA. The country will continue to assist Vietnam’s sustainable economic growth through projects such as the Ho Chi Minh City wastewater treatment system and urban railway development.
Looking ahead, Japan will place greater emphasis on emerging fields that shape the next stage of development, particularly green transformation and AI. In March this year, Japan approved a $330 million Program Loan for climate change and green transformation to help Vietnam achieve its goal of reaching net-zero emissions by 2050. Beyond financing, the program will help establish the institutional framework needed to encourage green investment while enabling the wider application of Japanese expertise in disaster prevention and weather forecasting.
Japan also plans to introduce an AI support package that combines financing with cutting-edge technologies from Japanese companies and initiatives to cultivate Vietnam’s highly-skilled workforce. Through this “new generation of ODA,” we hope Japan’s financial resources, expertise, and technology will help Vietnam achieve even greater progress in the new era.
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