Japan, Vietnam agree to boost bilateral trade to $60B by 2030

Japan and Vietnam on Saturday agreed to boost their bilateral trade to $60 billion by 2030, as Tokyo seeks to strengthen supply chains for critical resources amid its diplomatic spat with China and the Middle East crisis.

The two sides also agreed to boost Japanese investment in Vietnam of $5 billion per year at an early date, encourage Japanese enterprises to invest in high-technology projects with technology transfer, and support Vietnamese businesses investing in Japan, according to Vietnam News.

The agreement was reached during a summit between Japanese Prime Minister Sanae Takaichi and her Vietnamese counterpart Le Minh Hung in Hanoi.

The two premiers also signed six bilateral co-operation documents before holding a joint press stakeout following summit talks.

About the priority areas for bilateral cooperation, the two leaders agreed on further discussions toward building resilient supply chains for critical minerals and to work to support oil procurement for one of the Southeast Asian nation's largest oil refining facilities, according to Tokyo-based Kyodo News.

Located over 200 kilometers from Hanoi, the Nghi Son Refinery and Petrochemical Complex is a joint venture involving Vietnamese, Japanese, and Kuwaiti partners.

Tokyo's plan to support the Vietnamese complex is part of its pledge announced last month to provide $10 billion in financial support to other Asian countries to cope with the fuel supply shortage and supply chain disruptions amid thenear-closure of the Strait of Hormuz, a key artery for global energy trade.

The two sides also cited the potential of nuclear energy cooperation as early as 2040.

Japan is also inclined to include Vietnam in its Official Security Assistance framework launched in 2023 to provide defense equipment to like-minded countries.

Later Saturday, Takaichi will hold meetings with Vietnam's President To Lam.