PM Abe focuses on investment ties

PM Abe’s visit highlighted efforts to bolster Japanese investment in Vietnam -Photo: VNA

“More and more Japanese firms will come to Vietnam, focusing on many sectors such as construction, general commerce, high technology and agriculture,” and “Japan’s government will continue encouraging more Japanese firms to come to Vietnam to invest,” Abe stated during his visit.

“In the eye of Japanese firms, ASEAN is the world’s growth hub, and Vietnam is strategically considered to be the core of that hub,” he said.

Six co-operation agreements were inked during this visit (see box).

Among the deals is one between the Vietnamese Ministry of Industry and Trade’s General Department of Energy and Vung Ang 2 Thermal Power JSC about constructing the $2.5 billion Vung Ang 2 thermal power plant in the central province of Ha Tinh. The project will be constructed by Japan’s Mitsubishi Group under the build-operate-transfer model.

It is expected that the plant will become operational with its first 600 MW turbine in 2021 and with the second 600MW turbine in 2022.

During Abe’s visit, the CEOs of 25 large Japanese groups worked with leaders of over 30 Vietnamese provinces and cities nationwide and many Vietnamese partners – about possibilities for them to invest in various industries like infrastructure, energy, electronics, machinery, agriculture, and health care.

The groups include Sumitomo Corporation, Mitsui & Co., Ltd, Itochu Corporation, Mitsubishi Corporation, Canon Inc., Showa Denko K.K, NEC Corporation, PREC Co., Ltd., Mitsubishi Heavy Industries, Ltd., JGC Corporation, and JFE Engineering Corporation.

Many firms are keen to invest in public-private partnership projects constructing infrastructure and energy developments in Vietnam.

Recently, two delegations of nearly 70 Japanese companies operating in agriculture, food, household commodities, and consumer goods industries also came to Vietnam seeking business and investment opportunities.

A source from the Lam Dong’s People’s Committee told VIR that the province has worked with a big Japanese infrastructure group to build a 300 hectare high-tech agricultural park in the province.

“It is expected that after Abe’s visit, the group will officially commence the project,” the source said, revealing that the project’s total investment capital may be nearly $100 million.

After the park is built, the investor will attempt to attract Japanese agricultural firms.

As of December 20, 2016, Japan was Vietnam’s second largest foreign investor, with 3,280 valid investment projects registered at nearly $42.1 billion.

While holding bilateral talks with his Vietnamese counterpart, Abe committed to give Vietnam a fresh sum of official development assistance worth 123 billion yen ($1.05 billion) in the fiscal year of 2016 - in the fields of maritime security, climate change response, water drainage, and waste treatment.

Both leaders also vowed to continue the construction of major infrastructure projects such as the North-South highway in Vietnam.

Abe also announced that Japan will officially allow imports of Vietnam’s red-fleshed dragon fruit, and Phuc also agreed that Vietnam will do the same with Japan’s pear fruit.

Vietnam and Japan have also deepened their security and defence co-operation.

Abe announced that Japan will provide six patrol vessels to Vietnam, with an aim to strengthen the latter’s maritime safety. Currently, Vietnam already has six patrol vessels provided by Japan.

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