Japan and Vietnam commit to advocating for open international trade worldwide
☕️ In the heart of Hanoi, Japan's Prime Minister Shigeru Ishiba recently sealed deals with Vietnamese leaders, aiming to fortify their economic alliance and face the challenges of global trade turbulence together.
Amid escalating uncertainty due to potential crippling US tariffs, this meeting marked a high-level encounter in East Asia. Ishiba's visit to Vietnam was followed by a trip to the Philippines, emphasizing the region's growing significance amidst escalating global economic uncertainties.
"With the world economy becoming more uncertain, the impact on the Southeast Asian region is becoming increasingly clear," Ishiba stated after conferring with Vietnamese Prime Minister Pham Minh Chinh.
Photo: EPA-EFE
Vietnam has recently been a hotspot for high-level diplomacy. Xi Jinping, China's President, and top South Korean ministers have visited, while Tokyo hosted a trilateral meeting with China and South Korea.
The White House imposed "bilateral tariffs" of 46 percent on Vietnam and 24 percent on Japan earlier this month. Though these duties were later postponed until July while talks are underway, a 10 percent levy persists on all US imports, affecting major markets like Japan and Vietnam.
During a joint press conference with Chinh, Ishiba declared, "We will work together to preserve a free and open international order based on the rule of law." However, the session was carefully managed, with no questions from the press permitted.
Vietnam serves as a significant manufacturing hub for Japanese companies, like Honda, Canon, and Panasonic. Japanese firms have invested a total of US$78 billion in Vietnam, according to Vietnamese Ministry of Finance data. Japanese banks also hold strategic stakes in top Vietnamese lenders.
The two nations agreed on upholding the global order of free trade based on international rules. Four cooperation agreements were signed, focusing on boosting trade in energy transition products and research and development on semiconductors.
While details of the agreements were not disclosed, Vietnam's Communist Party General Secretary To Lam urged Japan to increase its investment in infrastructure projects during their meeting. Notably, Japan is involved in preliminary studies for a high-speed railway connecting Hanoi to the southern business hub of Ho Chi Minh City.
However, neither leader explicitly mentioned railways as a field of cooperation. Vietnam plans to finance the project primarily on its own.
This partnership between Japan and Vietnam aims to position Vietnam as a strategic manufacturing hub for Japanese firms, dealing with global trade uncertainties head-on. The agreements focus on semiconductors, energy, and high-tech sectors, including infrastructure and workforce development.
- In the midst of increasing global economic uncertainties, China's President Xi Jinping and top South Korean ministers have visited Vietnam, indicating a surge in high-level diplomacy in the country.
- Amid escalating US tariffs, Japanese Prime Minister Shigeru Ishiba and Vietnam’s Prime Minister Pham Minh Chinh agreed on upholding the global order of free trade based on international rules, with a focus on cooperating in semiconductors, energy, and high-tech sectors.
- Despite the apparent focus on semiconductor research and development, Vietnam's Communist Party General Secretary To Lam urged Japan to increase its investment in infrastructure projects, notably the high-speed railway connecting Hanoi to Ho Chi Minh City, although neither leader explicitly mentioned railways as a field of cooperation.
