Japan attaches special importance to Vietnam’s major infrastructure plans that help connect and promote economy among different parts of the country, said Keiichi Ishii, Japanese minister of Land, Infrastructure, Transport and Tourism (MLIT).
Vietnamese Deputy PM Trinh Dinh Dung met Japanese minister Keiichi Ishii. Photo: Chinhphu
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In turn, Dung expected to receive Japan’s further support in big projects like urban railways, express railways, highways, and Japanese experience in infrastructure management.
Both Vietnamese and Japanese officials emphasized the role of infrastructure in socio-economic development, saying that transportation will greatly enable Vietnam to achieve faster growth.
Dung also called for Japanese investment in other potential sectors like automobile industry, energy, and tourism in the country of nearly 100 million people.
At the meeting, Mr. Ishii affirmed that Japan will continue supporting Vietnam’s climate resilience and natural disaster mitigation efforts.
Huge Japanese investment in infrastructure
As of December 20, 2018, Japan is the second biggest investor in Vietnam with registered capital of US$57 billion, accounting for 16.7% of the Southeast Asian country’s foreign direct investment (FDI).
Japan’s projects in Vietnam are mostly under direct investment, joint venture, and under the forms of build-operate-transfer (BOT), build-transfer (BT), build to order (BTO), and business cooperation contract (BCC).
Japanese capital has been poured into a number of big infrastructure projects namely Hanoi Urban Railway No.1 and No.2, HCM City Metro No.1, Terminal 2 at Noi Bai International Airport, Nhat Tan Bridge, Nhat Tan-Noi Bai expressway, Cai Mep-Thi Vai port, Lach Huyen port, and Tan Vu-Lach Huyen road.
The Japan Bank for International Cooperation (JBIC), a Japanese public financial institution and export credit agency, plays an important role in arranging capital for the Japanese government-guaranteed projects in Vietnam.
Vietnamese Prime Minister Nguyen Xuan Phuc said that Japan is one of the most prestigious investors in Vietnam and the investment has strongly promoted the country’s industrialization over the past years.
