Greetings from DISG Secretariat
Dear Readers,
The AZEC+ Summit was held in April, following which Prime Minister Takaichi announced the "POWERR ASIA" concept. This is a new framework for Japan-ASEAN cooperation that aims to enhance energy resilience in the APAC region—by expanding the partnership beyond Japan and ASEAN to include India and Australia—alongside advancing related supply chain resilience and innovation cooperation.
AZEC was originally launched during the tenure of former Prime Minister Kishida with the idea that decarbonization and carbon neutrality efforts should not follow a linear path as pursued in Europe. Recognizing that each ASEAN country faces its own unique challenges, the initiative aims to pursue a multifaceted approach—using Japan's diverse carbon-neutral technologies and financial resources to provide practical solutions while addressing these challenges.
Building on this philosophy, the AZEC 2.0 concept encompasses not only carbon neutrality but also energy security—specifically, how to overcome the energy security risks posed by geopolitical tensions in the Strait of Hormuz. Furthermore, ASEAN countries serve as the global production hub for AI, digital technologies, and advanced manufacturing. Alongside ensuring a sufficient energy supply, it is essential to strengthen and make supply chains more resilient as the "world's factory."
For many years, Japan and ASEAN have built the world's manufacturing infrastructure underpinned by a longstanding relationship of trust. While preserving this foundation, we must evolve its form by integrating new AI and digital technologies and combining them with deep technologies aimed at achieving carbon neutrality. DISG intends to coordinate these private-sector initiatives and present various proposals from the private sector's perspective at the Japan-ASEAN Economic Ministers' Meeting to be held in September.
Best regards,
Masuo Kuremura
DISG Task Force Chair
Executive Director, JETRO Singapore
Special Advisor to the Minister of Economy, Trade and Industry
Prime Minister TAKAICHI Visits Viet Nam: Economic Security and Updated FOIP in Focus
On May 2, 2026, Prime Minister TAKAICHI Sanae visited Hanoi, the Socialist Republic of Viet Nam, to strengthen Japan-Viet Nam cooperation across multiple strategic areas. During her visit, she and the Vietnamese leadership agreed to advance collaboration in five key economic security areas: energy, critical minerals, AI, semiconductors, and space. Prime Minister TAKAICHI also confirmed cooperation under POWERR Asia and announced the Updated FOIP. She met with H.E. Mr. To Lam, General Secretary of the Communist Party and President, H.E. Mr. Le Minh Hung, Prime Minister, and H.E. Mr. Tran Thanh Man, President of the National Assembly, and delivered a foreign policy speech at Vietnam National University, Hanoi.
● Economic Security: Five Priority Areas
The leaders emphasized the importance of enhancing autonomy and resilience amid a challenging international environment. They agreed that cooperation in energy, critical minerals, AI, semiconductors, and space would form the backbone of new Japan-Viet Nam economic security efforts. This includes strengthening supply chains for critical minerals, developing AI models reflecting Viet Nam’s language and culture, and expanding the use of satellite data for disaster management. In addition, both sides highlighted the importance of improving the investment environment and intellectual property protections to support Japanese businesses, while also promoting measures to combat pirated manga websites for the healthy development of the content industry.
During the dinner hosted by Prime Minister Hung, Prime Minister TAKAICHI encouraged major Vietnamese retailers to expand their handling of Japanese agricultural, forestry, and fishery products, reinforcing the practical economic linkages between the two countries.
● POWERR Asia: First Project Launch
The first concrete project under POWERR Asia was confirmed in the energy sector. To maintain production and supply chains of essential materials, Japan will support crude oil procurement for the Nghi Son Refinery & Petrochemical Complex through NEXI. This project marks the start of POWERR Asia’s efforts to strengthen energy and resource resilience across the region.
● Updated FOIP: Priorities and ASEAN Initiatives
In her speech at Vietnam National University, Prime Minister TAKAICHI presented the Updated FOIP, outlining three priority areas in response to structural changes in the international order, including intensifying geopolitical competition and rapid technological innovation. She emphasized that countries in the region must build autonomy and resilience in economic, social, and security domains to shape their own futures, and that Japan would play an even more proactive role in supporting these efforts.
The FOIP initiative focuses on three main areas: building economic infrastructure for the AI and data era, co-creating economic growth opportunities through public-private collaboration and rule sharing, and enhancing security cooperation to ensure regional peace and stability. In the ASEAN region, this translates into strengthening supply chain resilience through POWERR Asia, fostering AI collaboration via the Japan-ASEAN Co-Creation Initiative, promoting the FOIP Digital Corridor Concept (including undersea cables, Open RAN, satellite communications, and all-optical networks), expanding the CPTPP strategically, and supporting security and maritime cooperation through OSA, ODA, and related frameworks.
● Security, Regional, and Multilateral Cooperation
The Prime Minister and Vietnamese leaders welcomed progress in security consultations and exchanges, including the first vice-ministerial "2+2" meeting and reciprocal naval port calls. They agreed to further advance maritime law enforcement cooperation to support peace and stability in the region.
The leaders also exchanged views on key regional and international issues, including the South China Sea, North Korea (nuclear and missile programs and abductions), and Middle East developments, such as ensuring safe navigation in the Strait of Hormuz. In multilateral frameworks, they reaffirmed the importance of strategically expanding the CPTPP and confirmed cooperation on APEC 2027, which Viet Nam will host.
● Parliamentary Exchange and Other Highlights
During her meeting with National Assembly President Man, Prime Minister TAKAICHI highlighted the role of the National Assembly in supporting government cooperation and encouraged further exchanges among parliamentarians, including female and young members. She presented the Grand Cordon of the Order of the Rising Sun to former General Secretary Manh and former Prime Minister Dung for their contributions to Japan-Viet Nam relations.
At the dinner hosted by Prime Minister Hung, she noted the historical ties between the countries, including the Bugaku dance introduced by 8th-century Vietnamese monk But Triet at the eye-opening ceremony of the Great Buddha of Todai-ji Temple in Nara, which has contributed to today’s close bilateral relations. She also paid respects at the Monument to Heroic Martyrs and the Ho Chi Minh Mausoleum. Finally, she invited General Secretary and President To Lam to visit Japan this year, coordinating the timing with Vietnamese leadership.
- Prime Minister TAKAICHI Attends the Conferral Ceremony and a Dinner Hosted by Prime Minister Hung (English) (LINK)
- Japan-Viet Nam Summit Meeting and Luncheon between Prime Minister TAKAICHI and H.E. Mr. To Lam, General Secretary of the Communist Party and President of Viet Nam (English) (LINK)
- Japan-Viet Nam Summit Meeting between Prime Minister TAKAICHI and Prime Minister Le Minh Hung (English) (LINK)
- Laying wreaths at Monument to Heroic Martyrs and the Ho Chi Minh Mausoleum by Prime Minister TAKAICHI Sanae (English) (LINK)
- Meeting between Prime Minister TAKAICHI and H.E. Mr. Tran Thanh Man, President of the National Assembly of Viet Nam (English) (LINK)
- Foreign Policy Speech by Prime Minister TAKAICHI Sanae (English) (LINK)
Japan-Philippines Summit: Relations Elevated to "Comprehensive Strategic Partnership"
On May 28, 2026, Prime Minister TAKAICHI Sanae held a summit meeting and dinner with H.E. Ferdinand Romualdez Marcos, Jr., President of the Republic of the Philippines, who visited Japan as a state guest. Marking the 70th anniversary of diplomatic relations, the two leaders upgraded their bilateral ties to a "Comprehensive Strategic Partnership"—the first for the Philippines—to ensure a sustained, multilayered relationship. They issued a joint statement outlining concrete cooperation in economy, development, and security to realize an updated Free and Open Indo-Pacific (FOIP).
1. Upgrading Economic Partnership, Economic Security, and Advanced Tech
To bolster supply chain resilience across Asia, the leaders agreed to advance talks on upgrading the Japan–Philippines Economic Partnership Agreement (JPEPA) and the ASEAN–Japan Comprehensive Economic Partnership (AJCEP). Prime Minister TAKAICHI welcomed the Philippines’ request to join the CPTPP and supported an early accession process. The leaders also signed a New Tax Convention to boost investment and economic exchanges. On economic security, they confirmed closer coordination to secure critical mineral supply chains and shared concerns over economic coercion.
In advanced technologies, both sides agreed to promote public-private cooperation to enhance AI capabilities and realize the FOIP Digital Corridor Concept. This led to the signing of a Letter of Intent on AI Cooperation between Japan’s MIC and the Philippines’ DICT. Public-private cooperation will also deepen in space and food security, supported by a newly signed JAXA-Philippine Space Agency declaration and an agricultural cooperation memorandum.
2. Shared Oil Stockpiling and Energy Cooperation under "POWERR Asia"
In response to the current energy climate, Prime Minister TAKAICHI announced enhanced support under "POWERR Asia" to strengthen medical supply chains and support the Philippines' national oil reserve system and ASEAN’s joint stockpiling arrangement.
The leaders affirmed the importance of balancing energy security, economic growth, and decarbonization, pledging to promote concrete cooperation under AZEC (Asia Zero Emission Community). A Joint Statement on Stockpile Cooperation was signed between Japan’s METI and the Philippines’ Department of Energy.
3. Infrastructure Development and Regional Contributions
The leaders agreed that high-quality infrastructure through ODA drives Philippine economic growth and enhances regional stability and self-sustainability. Cooperation will focus on domestic connectivity, disaster reduction, healthcare, human resource development, and the Luzon Economic Corridor, backed by the signed Grant Aid for the JDS program. Prime Minister TAKAICHI reaffirmed Japan’s unwavering commitment to the Mindanao peace process, for which President Marcos expressed appreciation.
4. Expanding Security and Maritime Cooperation
To deepen defense ties, the two leaders agreed to commence negotiations on a military classified information protection agreement. They also agreed to accelerate discussions toward transferring defense equipment, including Abukuma-class destroyers and TC-90 aircraft. Cooperation will continue through OSA (Official Security Assistance), with both sides planning an early Japan-Philippines "2+2" Ministerial Meeting.
In the maritime domain, Japan will continue capacity-building support for the Philippine Coast Guard through patrol vessels and joint training to ensure maritime safety and the rule of law, which President Marcos highly welcomed.
5. Collaboration on Regional, International, and Multilateral Issues
The leaders expressed serious concern over the East and South China Seas, strongly opposing any unilateral attempts to change the status quo by force or coercion. Prime Minister TAKAICHI reaffirmed support for ASEAN centrality and praised the Philippines’ initiatives as this year's ASEAN Chair, including its response to Myanmar. To secure regional peace, they agreed to strengthen ties among allies and like-minded nations, including Japan-U.S.-Philippines cooperation.
On global issues, they discussed the Middle East, confirming the importance of safe navigation in the Strait of Hormuz and stable energy supply chains. Regarding North Korea, they confirmed their commitment to complete denuclearization and the immediate resolution of the abductions issue. Finally, Prime Minister TAKAICHI pledged Japan's support for the Philippines’ bid for a non-permanent seat on the UN Security Council, agreeing to deepen cooperation in the international arena.
- Japan-Philippines Summit Meeting and Dinner (English) (LINK)
Special Envoy KISHIDA Visits Philippines to Advance AZEC Cooperation
On May 1, 2026, Mr. KISHIDA Fumio visited the Philippines as Special Envoy of Prime Minister TAKAICHI Sanae and Supreme Advisor to the Parliamentary Association of Asia Zero Emission Community (AZEC). Leading an AZEC parliamentary delegation, he observed the Batangas LNG Terminal, held economic dialogues with the ASEAN Business Advisory Council (ASEAN-BAC) Philippines, and met with Senator Juan Miguel Zubiri to strengthen bilateral energy and business ties.
1. Advancing Energy Transition and LNG under AZEC
Special Envoy KISHIDA visited the Batangas LNG Terminal, jointly operated by Tokyo Gas and Philippine partners. As the Philippines increasingly utilizes LNG for its energy transition, this operational facility stands as a concrete milestone of bilateral cooperation under the AZEC framework.
2. Economic Dialogues with ASEAN-BAC and Japanese Firms
To deepen Japan-ASEAN economic linkages, the AZEC delegation held a dialogue with ASEAN-BAC Philippines. Discussions focused on practical collaboration, including support for micro, small, and medium-sized enterprises (MSMEs) and the promotion of entrepreneurship and start-ups. The delegation also met with Japanese companies operating locally to discuss market dynamics.
3. Strengthening Parliamentary Ties and Bilateral Relations
Special Envoy KISHIDA held talks with Senator Juan Miguel Zubiri, former Senate President and Chairman of the Japan-Philippines Parliamentary Friendship Association. He personally congratulated Senator Zubiri on receiving the Grand Cordon of the Order of the Rising Sun (2025 Autumn Conferment). Senator Zubiri welcomed the visit and pledged his continued commitment to reinforcing Japan-Philippines relations.
- Mr. KISHIDA’s Visit to the Philippines, as Special Envoy of the Prime Minister (visiting the Batangas LNG Terminal and exchanging views with ASEAN Business Advisory Council, etc.) (English) (LINK)
Parliamentary Vice-Minister Komori Visits Philippines to Promote Food Export Program
From April 30 to May 2, 2026, Mr. Komori Takuo, Parliamentary Vice-Minister of Economy, Trade and Industry, visited Manila, the Republic of the Philippines. He promoted the program jointly launched by METI and MAFF to support 10,000 Japanese food exporters, conducting site visits to expand agricultural and food exports. Joining the AZEC parliamentary delegation led by Special Envoy Kishida Fumio, Vice-Minister Komori also held high-level energy dialogues with President Marcos and Energy Secretary Garin, and toured the Batangas LNG Terminal.
1. Expanding Japanese Food Exports and Assessing Local Market Needs
Vice-Minister Komori visited the JETRO Manila office to discuss commercial distribution channels and challenges in expanding food exports. He also conducted site visits at upscale supermarket "The Marketplace" and commercial facility "MITSUKOSHI BGC." Meeting with facility staff and local strawberry importer "Sawada Ichigo Cafe," he exchanged views on local consumer demand and specific challenges to scaling up the market for Japanese imports.
2. Strengthening Energy Security and Enhancing AZEC Functions
In view of the upcoming AZEC Leaders Meeting in November and the current situation in the Middle East, Vice-Minister Komori joined Special Envoy Kishida to hold discussions with President Marcos and Energy Secretary Garin of the Philippines, the 2026 ASEAN Chair. The two countries concurred on strengthening the strategic functions of AZEC and reinforcing the bilateral relationship to ensure stable regional energy security.
3. Infrastructure Site Tour and Economic Dialogue with ASEAN-BAC
The delegation visited the Batangas LNG Terminal, jointly operated by Tokyo Gas and Philippine partners, highlighting it as a prime example of bilateral energy transition cooperation under the AZEC framework. Furthermore, they held dialogues with the ASEAN Business Advisory Council (ASEAN-BAC) Philippines and local Japanese corporations, engaging in active discussions to deepen Japan-ASEAN relations through support for MSMEs and the promotion of entrepreneurship and start-ups.
- Parliamentary Vice-Minister Komori Visits the Republic of the Philippines (English) (LINK)
METI Hosts Second AZEC LEAF to Strengthen Energy Security
From May 25 to May 28, 2026, the Ministry of Economy, Trade and Industry (METI) hosted the second AZEC Leading Action Forum (AZEC LEAF) in Tokyo and Osaka. The forum convened working-level officials from AZEC partner countries, the Asian Development Bank (ADB), and the Economic Research Institute for ASEAN and East Asia (ERIA). In light of the current situation in the Middle East, participants shared national initiatives to ensure energy security and discussed key challenges to strengthening the resilience of the medium- to long-term energy supply structure.
1. Diversification of Energy Sources and Industrial Advancement
To bolster energy security within the AZEC region, participants shared the latest national policy trends and challenges. The discussions focused on concrete opportunities for international cooperation, including the diversification of energy sources—such as LNG, nuclear power, and biofuels—as well as industrial advancement driven by energy efficiency initiatives.
2. Structural Responses including Transition Finance and Utilizing Japanese Technology
The forum addressed critical structural responses required for medium- to long-term supply resilience, notably transition finance to balance decarbonization with economic growth. Furthermore, to encourage practical cooperation leveraging Japan's advanced technologies, the delegation toured local facilities related to energy technologies and engaged in technical opinion-exchange sessions.
- METI Hosts Second AZEC Leading Action Forum (AZEC LEAF) (English) (LINK)
Japan-Viet Nam Space Public-Private Forum, Hoa Lac Space Center Opens
From March 12 to 15, 2026, Japan's Ministry of Economy, Trade and Industry (METI), JICA, JETRO, and JAXA co-hosted the "VIETNAM-JAPAN SPACE HORIZONS 2026 FORUM" with the Vietnam Academy of Science and Technology (VAST) and the Vietnam National Space Center (VNSC). The forum drew over 800 participants from governments, space agencies, and private corporations of both nations and featured the opening ceremony of the Hoa Lac Space Center—Viet Nam's core space hub established through Japanese Official Development Assistance (ODA).
● Advancing Space Business and Signing Multiple MoUs
The forum facilitated robust networking through exhibition booths, panel discussions, and business-matching sessions. Participants from industry, academia, and government actively exchanged views on satellite technology, data applications/AI, space science/education, and the new space economy. These interactions led to the signing of multiple Memorandums of Understanding (MoUs) among organizations and private enterprises from both countries.
● High Expectations for New Partnerships Built on ODA Milestones
The Japanese delegation highlighted the strategic significance of past ODA initiatives, including the Earth observation satellite LOTUSat-1, noting that supporting Japanese companies collaborating with Vietnamese partners has consistently driven mutual economic benefits. They expressed high expectations for cultivating new co-creation opportunities. From the Vietnamese side, the opening of the Hoa Lac Space Center was commended as a major milestone symbolizing the deep cooperation between Japan and Viet Nam, alongside strong expectations for further bilateral growth, including the active participation of Japanese firms in upcoming Vietnamese projects.
- VIETNAM‑JAPAN SPACE HORIZONS 2026 FORUM Held (English) (LINK)
Editorial Note
