Japan's PM Takaichi in Hanoi, to meet Vietnamese leaders

Japanese Prime Minister Sanae Takaichi is set to meet Vietnam's leader To Lam in Hanoi on Saturday as ​the countries try to shore up ties amid a ‌sharp slowdown in Japanese investment in Vietnam.

The two sides are expected to discuss ways to deepen a Comprehensive Strategic Partnership established in 2023, with a ​focus on cooperation in energy, technology, critical minerals and ​regional stability, a Japanese foreign ministry official said.

Japan remains ⁠one of Vietnam's largest foreign investors, with many Japanese multinationals ​operating large manufacturing facilities in the country. However, new Japanese ​investment pledges in the first quarter fell about 75% from a year earlier to $233 million, Vietnamese government data shows.

Takaichi is expected to press for improvements ​in Vietnam's business environment and discuss the challenges facing Japanese ​companies, including delayed payments for completed works and difficulties gaining access to ‌large ⁠infrastructure projects, the official said.

Japan last year announced it would withdraw from a nuclear power project in Vietnam, citing an overly restrictive construction timetable.

Days before the visit, Hanoi said it was reconsidering a ban ​on petrol-powered motorcycles ​in its ⁠city centre, a policy long criticised by Honda.

Despite investment concerns, bilateral trade has remained strong, rising ​12.3% from a year earlier to $13.7 billion in ​the ⁠first quarter, according to Vietnamese customs data.

Takaichi is also scheduled to meet her Vietnamese counterpart Le Minh Hung and deliver a speech ⁠at ​Vietnam National University on the evolution of ​Japan's "Free and Open Indo-Pacific" strategy, before travelling on to Australia.

- Reuters