Thayer Consultancy Background Brief:

ABN # 65 648 097 123

Vietnam and Japan: Leaders
Meet on Sidelines of G7
May 26, 2023

We seek your comments on the recent commitment between Japan’s Prime

Minister Fumio Kishida and his Vietnamese counterpart Pham Minh Chinh on 21 May
that the two countries will join hands to tackle China's territorial claims in the nearby
waters to ensure regional peace and stability.
Here are our questions:
Q1. The Vietnamese leader was invited to the G7 Summit by Japan where the China
issue is one of the main topics. Why did Japan invite Vietnam to the G7 Summit, to
oppose China? Is it a deliberate step or just a casual invitation?
ANSWER: Japan was the official host for this year’s meeting of the Group of 7 (G7)
leaders’ meeting. The host has the discretion of inviting non-G7 members to attend.
Prime Minister Fumio Kishida took the initiative to invite eight non-G7 members and
the World Bank to an expanded G7 summit and to hold separate face-to-face meetings
with selected leaders.
Vietnam was invited along with Australia, Brazil, Comoros, Cook Islands, India
Indonesia, and Republic of Korea. Each country was chosen to expand relations with
the G7 and broaden international consensus on such issues as Russia’s war in the
Ukraine, China’s assertiveness in the Indo-Pacific, development issues and climate
change.
Q2. Is the rise of China driving closer relations between Japan and Vietnam?
ANSWER: Japan became Vietnam’s third strategic partner in 2004, following similar
agreements between Vietnam and Russia and China. In 2014, bilateral relations were
raised to an extensive strategic partnership. The China factor was one of a number of
drivers behind the Vietnam-Japan strategic partnership. Trade, investment and
development assistance were also factors. In addition, Vietnam sought to diversify and
multilateralize its external relations in order to maintain its independence and
strategic autonomy.
Q3. What are the pros and cons of Vietnam and Japan cooperating to oppose China’s
maritime claims?
ANSWER: Vietnam and Japan both have maritime disputes with China over the East
Sea and Senkaku Islands, respectively. Japan, as a major economy, provides Vietnam
with assistance for maritime safety and security and maritime law enforcement,
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including training, technology transfer, and the donation of maritime patrol vessels.
Both have a convergence of interests to uphold freedom of navigation.
The main disadvantage is that Japan-Vietnam maritime cooperation could be
perceived in Beijing as ganging up on China and thus provoke punitive measures. But
both Japan and Vietnam are adept at managing their relations with China. For
example, Vietnam is a member of ASEAN and ASEAN has a Plus Three mechanism to
deal with economic issues with China, Japan and South Korea.
Q4. What areas of cooperation did Japan and Vietnam agree to at the G7 Summit?
ANSWER: In February, Prime Ministers Fumio Kishida and Pham Minh Chinh held an
online discussion and agreed to raise their bilateral extensive strategic partnership to
a new level in 2023. Their meeting in Hiroshima on 21 May was the fifth discussion by
the two leaders in the past year.
The most important development was the signing of three separate agreements on
Japan’s Overseas Development Assistance (ODA) to Vietnam prior to the leaders’
formal meeting. The three areas included: a new-generation ODA support program
for post-COVID pandemic recovery and development; a public infrastructure project
in Binh Duong province; and an agriculture infrastructure development project in Lam
Dong province. The three projects totalled ¥ 61 billion (~ US $450 million).
Kishida and Chinh agreed to direct their respective ministries to accelerate the
completion of two ODA projects, the Cho Ray Hospital 2 and the Ben Thanh-Suoi Tien
Metro Line No. 1.
Prime Minister Chinh suggested discussions on removing difficulties affecting the Nghi
Son Oil Refinery project; consideration of exempting Vietnamese citizens from entry
visas to boost tourism; and new Japanese investment in high-tech industries and
energy transition to assist Vietnamese enterprises increased participation in Japan’s
supply chains.
On defence-security cooperation, Kishida and Chinh reached agreement on four areas
of Japanese assistance: remediation of post-war legacy issues, human resource
training, technology transfer, and cyber security. These are all areas where Japan has
assisted Vietnam in the past.
On the South China Sea, Kishida and Chinh stuck to the standard formulation of
ensuring the safety and security of navigation and overflight, resolution of disputes by
peaceful means based on international law including the United Nations Convention
on the Law of the Sea, full implementation of the Declaration on Conduct of Parties in
the South China Sea, and expeditiously completing an effective and substantive Code
of Conduct in the South China Sea.
Finally, the two Prime Ministers agreed to consult and coordinate their policies on
issues of mutual concern at multinational and regional forums including the United
Nations, APEC and ASEAN. Kishida and Chinh will meet again in December when Japan
hosts the ASEAN-Japan Summit.

Suggested citation: Carlyle A. Thayer, “Vietnam and Japan: Leaders Meet on Sidelines
of G7,” Thayer Consultancy Background Brief, May 26, 2023. All background briefs are
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Thayer Consultancy provides political analysis of current regional security issues and
other research support to selected clients. Thayer Consultancy was officially
registered as a small business in Australia in 2002.