Japan’s Takaichi pledges deeper energy cooperation with Vietnam

Japan’s Prime Minister Sanae Takaichi says the country will boost ties with Vietnam, with a focus on energy and critical minerals.

Takaichi met her Vietnamese counterpart, Le Minh Hung, on Saturday in Hanoi, where they signed six agreements on issues ranging from infrastructure to agriculture to space cooperation.

“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.

Hung said the two leaders also “reaffirmed the importance of resolving disputes in the South China Sea through peaceful means based on international law”.

Japan and Vietnam share concerns about China’s territorial claims in the East and South China Seas, and both have sought to hedge against United States-driven trade disruptions by broadening economic and security ties.

The push for deeper cooperation between the two states comes after ⁠new investment in Vietnam from Japan, one of its largest foreign investors, fell about 75 percent year-on-year to $233m in the first quarter, even as bilateral trade rose 12.3 percent to $13.7bn over the same ⁠period, according to Vietnamese government and customs data.

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 $10bn 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 President To Lam, who is also the general secretary of the Communist Party of Vietnam, 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.