2007 marked a significant milestone in relations between Vietnam and Japan as the Government and people of both countries witnessed a wealth of events in the fields of politics, diplomacy, economics, investment, culture and education.

The most important event was the November visit to Japan by State President Nguyen Minh Triet, the first Vietnamese Head of State to receive a warm welcome from the Japanese Emperor in the history of bilateral relations over the past 35 years.

Chairman of the Vietnam-Japan Friendship Parliamentary Alliance, Tsutomu Takebe, said that Prime Minister Nguyen Tan Dung’s visit to Japan in 2006 has proved to be effective, with the aim of bringing bilateral relations to new heights. In his 2007 visit to Japan, State leader Nguyen Minh Triet was received as a special guest of the Emperor, the Government and the people of Japan.

A joint declaration signed by State President Nguyen Minh Triet and Prime Minister Yasuo Fukuda opened new prospects for the future of relations between the two countries.

Vietnamese and Japanese leaders are laying a firm foundation for a bright new future for both countries. Japan agreed to raise its ODA funding for Vietnam to more than US$1 billion to help to implement three major projects including a North-South expressway project, a North-South railway project and a Lang Hoa Lac high-tech zone project. PM Fukuda also pledged to help Vietnam improve transport networks in Hanoi and HCM City.

Mr Triet reiterated Vietnam’s unswerving policy, which attaches great importance and gives priority to developing cooperative relations with Japan.

PM Fukuda said that his country regards Vietnam as a model economy and a strong driving force behind economic development in Asia. As a result, Japan will continue to assist Vietnam in developing the Mekong River Delta region, the East-West Corridor and carrying out other infrastructure development projects.

Both sides agreed to sign the Economic Partnership Agreement (EPA) soon and start the third phase of the Vietnam-Japan joint initiative aimed at improving the investment environment in Vietnam.

Apart from State leader Nguyen Minh Triet’s visit to Japan, many visits were made by other senior Party and State leaders such as those of Deputy Prime Minister and Foreign Minister Pham Gia Khiem, Deputy Prime Minister Truong Vinh Trong and politburo member and Head of the Communist Party of Vietnam (CPV) Organisation Commission Ho Duc Viet.

Former Deputy Prime Minister Vu Khoan’s acceptance of the Grand Cordon of the Order of the Rising Sun from the Japanese Emperor has contributed to deepening the relations of friendship and time-honour tradition between Vietnam and Japan.

Japan's new wave of investment in Vietnam
The wave of investment from Japan into Vietnam has increased dramatically in recent years. At a meeting of the Vietnam-Japan Joint Initiative Promotion Committee held in Hanoi late November, Japanese investors highlighted the significant achievements in investment cooperation between the two countries, particularly the effective implementation of 44 parts of the Vietnam-Japan joint initiative to improve the investment environment in Vietnam.

Since the implementation of the initiative in April, 2003, Japan’s investment in Vietnam has tripled and will continue to increase next year. During the President Nguyen Minh Triet’s visit to Japan last November, as many as 25 contracts for medium-sized projects worth US$4.5 billion have been signed.

Over the past year, hundreds of investment promotion exchanges have been held across Japan, particularly the Japan-Vietnam Business Forum held in Osaka – Japan’s biggest economic hub – which was held during President Triet’s visit to the country.

The forum attracted as many as 1,200 businesses from 500 companies of both countries to exchange information on legal documents, infrastructure and the investment climate in Vietnam. Japanese businesses pinned high hopes on Vietnam’s becoming a potential market.

Yasuo Hayashi, president of Japan’s Trade Promotion Organisation (JETRO), said investment in Vietnam is less risky and expenses are also smaller than in other Southeast Asian countries.

Mr Hayashi said that not only economic groups but also small-and medium-sized Japanese companies are keen to invest in Vietnam. The country is becoming a dynamic and attractive market. Moreover, the country’s leaders have paid due attention to encouraging foreign investment. The JETRO president expressed his belief that the inflow of Japanese investments will continue in Vietnam, particularly businesses from Kansai.

Vietnam an attractive market

Two-way trade turnover over the past year hit US$10 billion, an increase of 20 percent compared to 2006. Of this figure, Vietnam exported US$6 billion worth of goods to the Japanese market.

Noteworthy, exports to the Japanese market have not only increased in volume but also in the variety of items. Apart from traditional products such as seafood, farm produce, wood products, garments, textiles, and handicrafts, Vietnam has begun exporting fresh flowers, processed food and machinery to Japan – a highly demanding market for such items.

The relations of culture and tourism between the two countries are developing in line with cultural exchanges in the region and the world.

The exchange of chamber music between Vietnam and Japan at the Tokyo royal palace on the occasion of President Triet’s visit to Japan was considered a significant cultural event for the year.

The Vietnam-Japan friendship has also been heightened through diverse cultural and educational activities, including Vietnam’s attending the Japan-sponsored Ship for Southeast Asian Youth Programme, regular performances of Vietnamese and Japanese symphonies, Japan film festivals in Vietnam, Japanese-speaking oratory contests and seminars on studying in Japan.

Vietnam has become an attractive destination for Japanese tourists, particularly during the upcoming lunar New Year festival (Tet). In 2007, the country welcomed 400,000 Japanese holiday-makers. Next year, a variety of tourism, cultural, and educational activities will be held in both countries to mark the 35^th anniversary of diplomatic ties between Vietnam and Japan, notably a larger than ever cultural festival slated for September, 2008.