Kan Makes First Visit to Vietnam to Strengthen Bilateral Security and Economic Cooperation

Japan and Vietnam agreed on Monday to strengthen security and economic ties, including Japan’s agreement in principle to export military equipment and technology to Vietnam. Kan, who took office as prime minister last month, made his first foreign trip to two key Southeast Asian countries, Vietnam and Indonesia, in response to China’s expansion at a time when some Asian countries are uneasy about China’s increasingly assertive posture in recent years, especially its increased militarization in the South China Sea.

At a press conference in Hanoi after talks with Vietnamese Prime Minister Nguyen Xuan Phuc, Kan said the two countries reached an agreement in principle on defense equipment and technology, which is a major step forward in the security sector. Kan stressed that Vietnam’s chairmanship of ASEAN this year is key to achieving a free and open Indian and Pacific Oceans.

Vietnam’s Prime Minister Nguyen Xuan Phuc said at the press conference that the two leaders also agreed on the importance of maintaining peace, safe and free navigation and flights in the South China Sea, as well as the peaceful settlement of disputes. Vietnam, on its part, welcomes Japan’s continued active contribution as a global power to regional and global peace, stability and prosperity.

Vietnam and several ASEAN countries have disputes with China over sovereignty over the South China Sea.

In a speech on Monday, Kan said Japan opposes any move to increase tensions in the South China Sea. He said it is very important that all countries involved in the South China Sea issue do not rely on force or threats, but work toward a peaceful resolution of the dispute based on international law. Kan refrained from directing strong criticism at China.

Analysts point out that Japan must strike a balance between its close economic ties with China and its security concerns.

In recent years, China’s push to assert sovereignty over the disputed Diaoyu Islands in the East China Sea (known in Japan as the Senkaku Islands) has made Japan uneasy. The ASEAN countries, in turn, do not want to lose access to China’s economic markets and thus refuse to be drawn into a fierce confrontation between the United States and China.

In addition, in 2014, Japan stopped enforcing a decades-old ban on arms exports overseas. To help strengthen Japan’s military defenses and reduce the cost of producing military equipment, Japan has been discussing arms exports with Vietnam, Indonesia, and Thailand.

According to Kyodo News, Japan will export defensive weapons such as patrol planes and radars to Vietnam to enhance Vietnam’s ability to monitor the security of its borders.

At the same time, Kan’s first foreign visit comes amid Japan’s efforts to diversify its supply chain by moving factories and production lines back to Japan or to Southeast Asian countries such as Vietnam in order to reduce its dependence on China.

Kan also said that the neo-coronavirus pandemic has demonstrated more clearly the importance of reducing the risk of breakdowns and creating stable supply systems in order to maintain international supply chains. Japan will further deepen its cooperation with ASEAN countries in this area.

Vietnam is one of the most popular countries for Japanese companies to relocate their factories, and half of the 30 Japanese companies that applied for government grants for supply chain diversification projects chose Vietnam, where they have been active in attracting business.

In addition, Kan and Nguyen Xuan Phuc agreed to resume flights as soon as possible and to implement a “business corridor” that would allow businesspeople and technical staff to enter and exit the two countries without being subjected to a 14-day quarantine.

According to the itinerary, Kan traveled to Indonesia on October 20 to meet with Indonesian President Joko Widodo in Jakarta.

Japanese officials cited by Kyodo News reported that in addition to the resumption of flights, the two sides will discuss Japanese infrastructure cooperation in Indonesia, such as railroads and ports. The two sides will also pave the way for the so-called “2+2 Meeting,” a bilateral meeting between Japanese and Indonesian foreign and defense ministers to strengthen security cooperation.