Japan: Reasserting Influence in the Mekong River Region 

November 6, 2009 | 2130 GMT 

Japanese Prime Minister Yukio Hatoyama on Nov. 6 pledged $5.5 billion in aid over the next three years to Southeast Asia’s five Mekong River region countries. The aid to the region, though not new, is seen as part of the newly elected Japanese government’s strategy to expand its influence in Southeast Asia, as well as to compete with China’s increasing presence within the resource-abundant region.  

                 

The offer comes during the first Japan-Mekong Summit, held Nov. 6-7 in Tokyo, which involved leaders from Cambodia, Laos, Myanmar, Thailand and Vietnam. According to the Japanese government, the aid is intended to promote regional development in infrastructure, customs, and water and waste disposal systems. 

Tokyo is interested in the Mekong River region for its strategic geographical position and abundance of natural resources (such as minerals and hydroelectric power), and has long been the largest outside source of aid to the region. As early as the 1980s, Japanese companies began investing heavily into individual Mekong River countries. In the 1990s, Japan re-engaged in the region by funding the Greater Mekong sub-region program, sponsored by the Asian Development Bank, which promoted cooperation in the Mekong region in several key sectors such as transportation, energy, trade and investment. The Japan-Mekong Sub-region Partnership Program implemented in December 2006 marked a revived strategy to strengthen Japan’s trade and investment ties with the sub-region countries. In addition, Japan has given several billion dollars in aid to the whole region, as well as each individual country.  

However, Japan’s position in Southeast Asia has been increasingly challenged by its rival China — and to a lesser extent, South Korea — in recent years. Both China and South Korea began increasing their presence within the region in the early 2000s. For example, Chinese companies have participated at least four out of 10 dam projects along the Mekong River. China has been actively investing in infrastructure, energy and mining projects in Laos, Cambodia and Myanmar (for instance, the Prek Kdam Bridge in Cambodia is under credit loan from China, and China’s state-owned oil company, China National Petroleum Corp., has started constructing a pipeline linking Myanmar to China). Moreover, in 2007 China surpassed both Japan and the United States to become the largest trade partner with the Mekong countries. South Korea follows closely behind Japan and China and is keeping a close eye on the region. During a tour by South Korean President Lee Myung Bak in late October, the country pledged a $200 million loan and $100 million in aid to Vietnam.  

Japan’s newly elected government, led by Hatoyama, proposed the concept of “East Asia Community,” which aims to strengthen Tokyo’s strategic position within Asia and particularly the Mekong region. The $5.5 billion offer represents Japan’s ambitions to reinforce its role within the region. Moreover, the offer comes just prior to the Nov. 14-15 Asia-Pacific Economic Cooperation Summit and the Association of Southeast Asian Nations-U.S Summit, which leaders from all five nations on the Southeast Asian peninsula will attend. Japan’s offer will add to competition with China and South Korea for opportunities and influence in the region.