In recent decades, Southeast Asia has become one of the most strategic regions in global geopolitical dynamics. Vietnam, the country with the fastest economic growth in the region, has an important role in attracting foreign investment, especially in the infrastructure sector. Japan, as a major economic power in Asia, has strengthened its cooperation with Vietnam through various infrastructure development projects. This cooperation is not only driven by economic motives but also by geopolitical elements to balance China’s influence through the Belt and Road Initiative (BRI) project. The bilateral relationship between Japan and Vietnam has complex historical roots, starting from French colonialism in Indochina. During World War II, Japan occupied Vietnam, which complicated the relationship between the two countries. After World War II, this relationship began to improve along with the revival of the Japanese economy and a foreign policy that focused on development assistance. In 1992, Japan began providing official development assistance (ODA). Over time, the relationship between Japan and Vietnam has grown into a strategic economic partnership, which focuses on infrastructure development such as transportation, energy, and technology. In the early 21st century, Japan began to position Vietnam as a strategic partner within the Partnership for Quality Infrastructure, an initiative aimed at increasing infrastructure investment in Southeast Asia as a counter to China’s BRI. This initiative marked a shift in Japan’s foreign policy towards being more proactive in supporting infrastructure development in the region as part of a geopolitical strategy to balance China’s influence in Southeast Asia.
In analyzing this partnership, this essay uses the theory of international political economy (Robert Gilpin), which highlights that the dynamics of international relations cannot be separated from the interaction between economic and political power. In his book Global Political Economy: Understanding the International Economic Order, he argues that countries tend to use economic power to achieve political goals, while political policies are believed to shape the global economic structure in turn. In the context of the relationship between Japan and Vietnam, this tends to use a mercantilist approach where the country uses policies in the economic field to strengthen national power and influence the international order. Japan is not only oriented towards its economic power, but Japan is also oriented towards increasing political influence by offering high-quality investment alternatives compared to China’s BRI projects. This theory also emphasizes that the relationship between state power and the market is very important in shaping a global economic policy. In this case, Japan uses its technological superiority and financial capacity to advance its geopolitical agenda through infrastructure projects in Vietnam.
Infrastructure cooperation between Japan and Vietnam includes several strategic projects such as transportation, energy, and urban development. One of the main projects funded by Japan itself is the construction of a railway in the cities of Hanoi and Ho Chi Minh City. The project is also supported through a soft loan scheme from the Japan International Cooperation Agency (JICA) with the aim of improving urban mobility and reducing traffic congestion in the two largest cities in Vietnam. The Hanoi Line 1 and 2 urban railways receive significant support from Japan itself, both in terms of funding and in the process of technology transfer. In addition to the railway project, Japan also assisted in the construction of Long Thanh International Airport in Dong Nai province, which is also an important symbol of this partnership. The airport is designed to be one of the largest air transportation hubs in Southeast Asia, with an estimated passenger capacity of around 100 million per year once all construction phases are completed.
Japan also aims to strengthen Vietnam’s air transport capacity and also enhance international connectivity by offering high-tech support and long-term funding for the project. This infrastructure cooperation also involves highway and bridge construction projects, such as the Nhat Tan Bridge project and the Noi Bai – Lao Cai Expressway, to improve connectivity between the capital city of Hanoi and the northern provinces of Vietnam. This project plays an important role in strengthening Vietnam’s national transportation network as well as supporting economic development in the border region. In addition to helping with physical infrastructure, Japan also focuses on technology transfer and training for Vietnamese workers in the fields of project management, infrastructure maintenance, and transportation technology. This technology transfer can strengthen Vietnam’s domestic capacity in managing and maintaining infrastructure, and this shows that Japan is not only oriented towards economic benefits but also has the same orientation in the field of long-term capacity building for Vietnam. In the cooperation between Japan and Vietnam, we can see how economic and political interests are interrelated. Japan uses infrastructure as an instrument to strengthen its influence in the region while also offering an alternative for countries that are worried about China’s dominance through the BRI. Japan’s approach that emphasizes quality infrastructure investment shows a commitment to development and transparency carried out by Japan, in contrast to what China has done, which is often criticized for being considered less concerned with social and environmental aspects. Economically, this infrastructure project strengthens trade and investment relations between Japan and Vietnam; this also increases Vietnam’s own economic competitiveness. With this investment, it also has a positive impact on Vietnam’s economic growth by increasing domestic and international connectivity, which in turn attracts more direct foreign investment (FDI). From a geopolitical perspective, this cooperation has helped Vietnam strengthen its position amidst the competition between Japan and China in the Southeast Asia region. Vietnam strategically uses this partnership to maintain a balance of power without relying on just one major power. This approach is in line with Vietnam’s foreign policy strategy known as Bamboo diplomacy, in which Vietnam maintains flexibility and balance in its international relations.
This cooperation has a positive impact on Vietnam’s economic growth, especially in terms of infrastructure modernization and increasing regional connectivity. In the long term, this cooperation has the potential to strengthen regional stability by creating a balance of power amidst increasingly intense geopolitical competition, but the prospects for this partnership will depend heavily on geopolitical dynamics and Vietnam’s capacity to maintain an independent foreign policy. The cooperation between the two countries also reflects the dynamics of political economy in the context of regional geopolitical competition. Japan uses infrastructure diplomacy to strengthen its influence in Southeast Asia, while Vietnam uses this cooperation to accelerate economic development while maintaining balance in international relations.
