HCMC – The Vietnam visit by Japanese Prime Minister Takaichi Sanae signals another step forward in the Comprehensive Strategic Partnership between the two countries, which was formally set up in November 2023. This partnership has increasingly emphasized not only trade and investment, but also economic security, resilient supply chains, and regional stability.
In an era marked by disrupted global supply chains and intensifying geoeconomic competition, economic ties between Japan and Vietnam have evolved into a strategic partnership. High-level exchanges continue to underscore this shift. Japanese policymakers have identified Vietnam as a central partner in advancing the vision of a “Free and Open Indo-Pacific,” a concept promoted by Japan to ensure open trade routes and a rules-based regional order. Vietnam’s strategic location, stable growth, and expanding industrial base make it particularly attractive in this context. Over more than five decades, bilateral relations have matured into a dense network of economic and institutional ties, now entering a phase focused on higher-value cooperation.
Vietnam is increasingly viewed as more than a low-cost manufacturing base, as it attracts investment in higher-value industries. The country is actively moving up the value chain, targeting high-technology sectors such as semiconductors. Under government initiatives like Decision 1017/QD-TTg, Vietnam aims to develop a skilled semiconductor workforce by 2030.
Energy cooperation has also strengthened. Through initiatives such as the Asia Zero Emission Community (AZEC), Japan is supporting Vietnam’s transition toward decarbonization through renewable energy, lower-emission fuels such as LNG, hydrogen and ammonia, and industrial emissions reduction. These efforts align with Vietnam’s net-zero-by-2050 commitment while creating new opportunities for Japanese technology providers and investors.
Vietnam’s appeal stems from strong economic growth, an extensive network of free trade agreements, and rising capabilities in higher-value industries such as semiconductors and renewable energy. Japanese corporate presence in Vietnam remains substantial, with 5,760 active Japanese-invested projects worth a combined US$79 billion by late March 2026. This expansion reflects the broader China plus one strategy, as companies seek to reduce reliance on a single production base while preserving efficiency and resilience. Vietnam has become one of the leading beneficiaries of that shift.
