• Japan and Vietnam reaffirm commitment to free trade amid potential US tariffs.
• Prime Minister Ishiba emphasizes global economic uncertainty affecting Southeast Asia.
• Vietnam is a key assembly hub for Japanese manufacturers with $78 billion in investments.
• Both nations signed four cooperation agreements, focusing on energy and semiconductors.
• Future railway projects discussed, with a cost estimated at $67 billion.

During Prime Minister Shigeru Ishiba's visit to Hanoi, Japan and Vietnam pledged to enhance bilateral trade and uphold international trade rules. Ishiba's visit is particularly timely as both nations engage in talks with the U.S. to mitigate recent tariff threats. "The world economy is becoming more uncertain, and the impact on the Southeast Asian region is also becoming apparent," he stated, highlighting the escalating tensions in global trade, according to Reuters, Channel News Asia, and The Jakarta Post.

The U.S. introduced "bilateral tariffs" of 46% on Vietnam and 24% on Japan earlier in April, a move that prompted both countries to pause these duties until July while further discussions occur. Additionally, a general 10% levy continues to apply on all imports into the U.S., a critical market for both nations. "We will cooperate to maintain a free and open international order based on the rule of law," Ishiba noted in a joint press session, according to Channel News Asia and The Jakarta Post.

Japan's investment in Vietnam is significant, with approximately $78 billion committed to various sectors, turning Vietnam into a major assembly hub for large Japanese manufacturers like Honda, Canon, and Panasonic. Furthermore, Japanese banks have strategic stakes in several key Vietnamese financial institutions. Both leaders highlighted the importance of these economic ties and the necessity to support the global free trade order, according to Reuters, Channel News Asia, and The Jakarta Post.

During his discussions with Vietnamese officials, including the country's top leader, To Lam, a strong emphasis was placed on increasing Japanese investment in Vietnam's infrastructure projects. Japan is currently considering investments in a high-speed railway project intended to connect Hanoi to Ho Chi Minh City, estimated to cost $67 billion and recognized as Vietnam's most ambitious infrastructure plan. However, the specifics of railway collaborations were not formally addressed during the meetings, with Vietnam indicating it plans to finance much of the project independently, according to Reuters, Channel News Asia, and The Jakarta Post.