28-11-2023 (HANOI) In a significant diplomatic stride, Vietnam and Japan formalized their upgraded relationship to a “comprehensive strategic partnership” on Monday (Nov 27), marking a pivotal moment during Vietnamese President Vo Van Thuong’s visit to Tokyo.
This milestone underscores Vietnam’s burgeoning importance as a linchpin in global supply chains, especially amidst escalating trade tensions between China and the West. As companies seek to mitigate risks and relocate operations, foreign investments are flowing into Vietnam, solidifying its strategic position in the Southeast Asian region.
President Thuong expressed the magnitude of the occasion in a televised speech, stating, “This is an important event, opening a new chapter in the Vietnam-Japan relations.”
This elevation of ties with Japan comes on the heels of Vietnam’s historic upgrade of relations with the United States in September. During that epoch-making event, the former adversaries inked multiple cooperation agreements, spanning crucial sectors such as semiconductors and critical minerals.
Vietnam has accorded comprehensive strategic partnership status to five other nations, namely China, India, Russia, South Korea, and the United States.
Japan holds a pivotal role in Vietnam’s economic landscape, standing as its third-largest source of foreign investment and fourth-largest trading partner. Bilateral trade between the two nations surged to US$50 billion last year.
Leading the charge in foreign investments, several Japanese corporate giants, including Canon, Honda, Panasonic, and Bridgestone, have established a robust presence in Vietnam. This influx has transformed the country into a regional manufacturing hub, contributing to one of the fastest-growing economies in Asia.
Notably, both Vietnam and Japan find themselves entangled in separate maritime disputes with China. In 2020, the two nations sealed a momentous US$348 million Japanese loan agreement, earmarked for Vietnam’s construction of six patrol vessels, underscoring their shared interests in maritime security and regional stability.
