Every year, Vietnam and Japan organise high-level exchange visits. In 2002, leaders of the two countries agreed to build Vietnam-Japan relations under the motto “reliable partnership and long-term sustainability”. During the visit to Vietnam in July 2004 by the Japanese Minister of Foreign Affairs, the two countries signed a joint declaration working towards a new level of sustainable relationship.

In October 2006, Prime Minister Nguyen Tan Dung paid an official visit to Japan, beginning a new period of development under the motto “Towards strategic partnership for peace and prosperity in Asia”.

Japan has supported Vietnam’s renewal and open policies and assisted Vietnam in its efforts to join regional and international organizations, including the Asia-Pacific Economic Cooperation (APEC), the World Trade Organisation (WTO), the Asia-Europe Meeting (ASEM), and the Asia Regional Forum (ARF), and lobbied the Organisation of Economic Cooperation and Development (OECD) to provide technical assistance to Vietnam.

Vietnam supports Japan as a non-permanent member of the United Nations Security Council, while Japan is supporting Vietnam as a non-permanent member of the organization in the 2008-09 term.

Japan is considered as Vietnam’s leading economic partner. The two countries have agreed to conduct formal negotiations on a bilateral Economic Partnership Agreement (EPA) from January 2007. Since 1999, Vietnam and Japan have given each other tax incentives.

In the first seven months of 2006, total Vietnam-Japan trade turnover hit a new high of US$5.57 billion, an increase of 16.8 percent against the same period last year. Of the figure, Vietnam’s exports to Japan reached US$2.96 billion, an increase of 20 percent while imports from Japan were worth US$2.59 billion, up by 13 percent.

By August 2006, Japan had 677 valid investment projects in Vietnam with a total registered capital of US$6.8 billion, making the country the third biggest investor in Vietnam.

Vu Huy Mung, deputy director of the Ministry of Foreign Affairs, said that Vietnam and Japan will organize important trade and economic activities in the near future. These will be to acknowledge agreements, particularly the deal to increase two-way trade turnover to US$15 billion. In addition, the two countries will implement big projects, including the building of the North-South road, the high-speed railway project, and the Lang Hoa Lac Hi-tech industrial park.

Japan is Vietnam’s leading partner in official development assistance (ODA), as well as trade and foreign direct investment (FDI). However, there is potential for better cooperation, particularly in FDI, tourism, science and technology.

The two countries have agreed on Japan’s long-term investment in Vietnam with a focus on five areas - developing human resources and institutions, building and upgrading transport and power systems, developing agricultural and rural infrastructure, developing education and training, and protecting the environment.

Japan is also a potential market for Vietnamese labourers. Since 1992, Vietnam has sent approximately 18,000 Vietnamese post graduates to the country.

Cultural cooperation between Vietnam and Japan has always received due attention. Japan has sent many experts to Vietnam to assist in projects to preserve traditional houses in the northern, central and southern regions of Vietnam. The two partners regularly exchange art performances, exhibitions, film festivals and cultural festivals.

In January 2004, Vietnam implemented a policy to exempt visas for Japanese tourists and businessmen visiting to Vietnam for up to 15 days. On July 1, 2004, Vietnam decided to exempt a short-term entrance visas for all Japanese passport holders. On March 8, 2005, Vietnam and Japan made an agreement to exempt entrance visas for Vietnamese and Japanese diplomats staying for no more than 90 days. The agreement came into effect on May 1, 2005.

During the 14^th APEC Economic Leaders’ Meeting, Prime Minister Shinzo Abe and his spouse will pay an official visit to Vietnam from November 19-20. This will be the first visit to Vietnam by Shinzo Abe as Prime Minister.

The visit by Prime Minister Shinzo Abe is taking place at a time when Japan is experiencing great changes in the ruling party – the Liberal Democratic Party (LDP). Prime Minister Shinzon Abe and his newly established cabinet affirmed their reform efforts, particularly economic reforms to maintain the current economic recovery rate and the adjusting of their external relation policies, especially towards Asian countries and with a focus on Vietnam.