Vietnam expects new Japanese investment wave

08:27 | 02/07/2017 Cooperation

(VEN) - During Prime Minister Nguyen Xuan Phuc’s recent visit to Japan, the two countries signed a number of cooperation projects, promising a new wave of Japanese investment in Vietnam in a wide range of fields.  

Economic cooperation

In early June, Vietnamese Minister of Industry and Trade Tran Tuan Anh and Japan External Trade Organization (JETRO) Chairman Hiroyuki Ishige exchanged a cooperation agreement in the presence of PM Nguyen Xuan Phuc and PM Shinzo Abe.

The agreement focuses on support for business cooperation between Vietnamese and Japanese companies, promotion of trade and industrial investment, and beneficial implementation of the Economic Partnership Agreement and other free trade agreements of which the two countries are signatories. It also covers increasing cooperation in services; promotion of bilateral trade through e-commerce; help for Vietnam in developing support industries and small and medium-sized enterprises.

The agreement emphasized the two sides’ commitment to promote effective trade and investment cooperation for mutual benefits and sustainable development.

PM Phuc attends the signing of cooperation agreements between Vietnamese ministries, sectors and localities and Japanese businesses, valued at US$22 billion - Photo: VGP/Quang Hieu

Transport infrastructure

During PM Phuc’s visit to Japan to attend the Asia Future Forum from June 4-8, Vietnamese Deputy Minister of Transport Nguyen Ngoc Dong met leaders of the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and signed two agreements.

These cooperation agreements are expected to contribute to favorable conditions for organizations and businesses to develop expressway projects in Vietnam based on public-private partnership (PPP) models.

PM Phuc requested his Japanese counterpart and the JICA Chairman to assist Vietnam in developing major transport infrastructure projects. Specifically, he asked the Japanese side to help Vietnam prepare a pre-feasibility study report for the North-South Express Railway project and provide financial support for the development of components of the North-South Expressway project. PM Shinzo Abe pledged to assign specialized Japanese agencies to coordinate with the Vietnamese side to propose suitable investment options.

Infrastructure development

Japan is Vietnam’s largest provider of bilateral official development assistance (ODA), with committed loans totaling more than JPY2.58 trillion, or nearly US$24 billion. Most projects using Japanese ODA are in the field of infrastructure development, significantly contributing to Vietnam’s socioeconomic development and industrialization.

PM Nguyen Xuan Phuc is pleased with the willingness of Japanese businesses to further invest in Vietnam - Photo: VGP/Quang Hieu

According to the Debt Management and External Finance Agency under the Ministry of Planning and Investment, the loan agreement signed in the 2016 fiscal year for the Hoa Lac High-tech Park Infrastructure Development Project is the third loan for this project and the second loan for projects in the field of construction.

Japan’s commitment to further support major infrastructure projects in Vietnam reflects the Japanese government’s faith in Vietnam’s management and project implementation capabilities and development potential.

PM Phuc’s visit to Japan marked a new step ahead in cooperative relations between the Vietnamese and Japanese governments, in general, and between the Vietnamese Ministry of Finance and JICA, in particular.

Smartest city in Southeast Asia

In the presence of PM Phuc, the Hanoi People’s Committee, the BRG Group (Vietnam) and the Sumitomo Group (Japan) signed an agreement to cooperate on the Nhat Tan-Noi Bai Urban Development Project to the north of Hanoi, billed as the most modern smart city in Southeast Asia.

BRG Chairwoman Nguyen Thi Nga spoke about the group’s special interest in this project and its determination to making it a success.

The cooperation between the BRG and Sumitomo groups, and the Hanoi People’s Committee’s support commitment, are major factors promoting effective implementation of the project.

This cooperation agreement is in line with the Vietnamese government’s urban development policy and is also expected to contribute to strengthening the good relationship between the two countries.

Kim Chi