Strategic Investment and Energy Cooperation in Vietnam–Japan Relations: Perspectives

Abstract

This paper examines strategic investment and energy cooperation in Vietnam–Japan relations from a political economy perspective, aiming to clarify the role of official development assistance (ODA), foreign direct investment (FDI), and infrastructure cooperation in shaping Vietnam’s development trajectory. Drawing on a historical political economy approach and a case study methodology, the paper demonstrates that Japan has employed investment and ODA as strategic instruments to support Vietnam’s industrialization, infrastructure development, and long-term energy security. Energy cooperation—particularly in the power sector—has provided a critical foundation for attracting investment, integrating Vietnam into regional and global value chains, and sustaining stable economic growth. At the same time, this cooperation model reflects pronounced asymmetries in capital, technology, and institutional capacity, posing challenges to Vietnam’s developmental autonomy and prospects for upgrading. In the context of accelerating energy transition and increasingly stringent climate commitments, the paper argues that Vietnam–Japan relations are entering an important phase of adjustment, in which energy cooperation and investment need to be reconfigured toward greater sustainability and balance. Overall, the study contributes to a deeper understanding of a distinctive model of development cooperation in Asia, where growth, asymmetry, and transformation coexist.

https://doi.org/10.26803/MyRes.2026.10