Summary Vietnam has been seeking support from Japan and other countries for oil supplies as conflict in the Middle East drives prices higher
HANOI (Reuters) - Japanese Prime Minister Sanae Takaichi pledged on Saturday to deepen ties with Vietnam, highlighting energy and critical minerals in talks with Prime Minister Le Minh Hung, and later urged Southeast Asian nations to bolster regional supply chains.
The two leaders discussed ways to deepen the Comprehensive Strategic Partnership established in 2023, focusing on energy, critical minerals, artificial intelligence, semiconductors and space.
"The two sides identified economic security as a new priority area for bilateral cooperation," Takaichi told reporters after the meeting.
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.
During a policy speech later at Vietnam National University on Saturday, Takaichi said such risks underscored the need for closer regional coordination.
"To ensure a stable supply of petroleum products essential to economic activity, Japan and ASEAN must jointly strengthen regional supply chains," she said.
Under the $10 billion 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 linked the initiatives to Japan's renewed "Free and Open Indo-Pacific" strategy, introduced a decade ago by former Prime Minister Shinzo Abe, which Tokyo now seeks to enhance with a stronger focus on economic security and infrastructure development.
Hung expressed Vietnam's alignment with Japan's regional strategies, including the "Free and Open Indo-Pacific" vision.
ECONOMIC AND MINERAL COLLABORATION
Takaichi cited Japanese manga and popular consumer gadgets such as Apple's AirPods and Nintendo's Switch as symbols of Vietnam's growing role in global manufacturing.
Despite Japan remaining one of Vietnam's largest foreign investors, new Japanese investment in Vietnam fell 75% year-on-year to $233 million in the first quarter, official data showed.
However, pledged investment for 2025 rose 19.4% to $3.08 billion from the year earlier, while bilateral trade climbed 12.3% year-on-year to $13.7 billion.
Japan is seeking to reduce its reliance on China for rare earths by strengthening critical-minerals supply chains, while Vietnam, despite having sizeable untapped rare earth and gallium resources, has struggled to develop processing capacity due to technological constraints and China's dominance in refining.
Takaichi said the two sides had agreed to strengthen coordination on critical minerals to ensure stable supplies and reinforce supply chains.
"Japan, ASEAN and the entire Indo-Pacific region can become more resilient and prosperous together," she said.
