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Vietnam wants Japanese businesses to increase their investment in the country through the form of public-private partnership (PPP).

Vietnamese Deputy Minister of Planning and Investment Dang Huy Dong expressed the desire while speaking at the Vietnam-Japan Investment Forum held in Tokyo on July 22.

Dong said, from now to 2020, Vietnam would need a major source of investment to develop the country’s infrastructure, estimated at $16-17 billion per year, while the capital investment from traditional channels only would meet 50-60 per cent of demand.

As a result, the pilot scheme for investment under the PPP form was approved. This was one of the key policies of the Vietnamese government aiming to create a legal corridor for attracting more sources of investment from the private sector for developing infrastructure and public services in Vietnam .

The deputy minister said the Vietnamese government expected to successfully implement PPP, attracting not only capital sources but also advanced technologies and effective management experience from the private sector.

He expressed hopes that Japan, as a strategic partner of Vietnam , would continue to closely cooperate with the country to successfully deploy the PPP programme, affirming that the Vietnamese government always highly valued the efficiency of investment capital from Japanese investors.

Responding, Japanese Vice Minister of Land, Infrastructure, Transport and Tourism Naoyoshi Sato said the Japanese government is considering joining in the PPP projects.

He also highlighted some of Japan’s strong points on technology and experience in the fields of high-speed railways, sewage treatment and rubbish recycling.

At the event, which was jointly held by the Vietnamese Ministry of Planning and Investment (MPI), the Mainichi Daily News and the Nikkan Kogyo Newspaper of Japan , representatives from Vietnam informed Japanese businesses about regulations related to investment activities under the PPP form, its potential in Vietnam as well as some trial PPP projects in transportation, energy and urban infrastructure.

According to the MPI, by June this year, 1,552 projects of Japanese businesses were valid in Vietnam, with a total investment of $21.3 billion. Japan was the fourth-largest investor out of 93 countries and territories investing in Vietnam.