Japan deals to be inked as PM visits

Japan deals to be inked as PM visits, photo: baochinhphu

At the invitation of Japan’s Prime Minister Shinzo Abe, PM Phuc will visit the country during October 7-10 and attend the 10th Mekong-Japan Summit in Tokyo.

In addition to attending a forum on promoting investment among the five Mekong nations (Cambodia, Laos, Myanmar, Thailand, and Vietnam) and a similar forum between Vietnam and Japan, PM Phuc is scheduled to hold separate meetings with leaders of many Japanese groups including ANA Holdings, UFJ, MUFG, Japan Tobacco, AEON, Mitsui and Mitsubishi. The companies are expected to focus discussions on potential business and investment opportunities in Vietnam in the near future.

For example, AEON is reported to be planning the development of new shopping malls in Vietnam. Last May, AEON Mall was given an investment certificate to build a $180 million mall in the northeastern city of Haiphong. In March, AEON Mall commenced construction of a mall in Hanoi’s Hadong district, with the total investment capital of over $190 million. This is the second AEON mall in Hanoi, and fifth in Vietnam overall.

Meanwhile, ANA Holdings and Vietnam Airlines concluded a final contract for a business and capital partnership, following a memorandum of understanding, which saw Japan’s largest airline group acquire a stake of approximately 8.8 per cent in Vietnam Airlines for a total of VND2.431 trillion ($107.56 million).

ANA has been co-operating with Vietnam Airlines on codeshare flights and mileage programmes, and has also introduced Vietnam Airlines cabin attendants as in-flight service assistants on ANA flights. The latest expansion forms part of the strategy of the commercial and capital partnership agreement between the two companies.

As of September 20, 2018, Japan had 3,900 valid investment projects in Vietnam, registered at $55.78 billion.

Many large Japanese projects are operating well in the country, including Sony, Panasonic, Canon, Mitsubishi, Sumitomo Corporation, and Marubeni. Idemitsu Kosan is holding 35 per cent stake of the $9 billion Nghi Son refinery and petrochemical complex in the central province of Thanh Hoa. This plant will officially begin its commercial operation in November. Also in Thanh Hoa, Marubeni and Korea Electric Power is also investing in a $2.79 billion coal power plant expected to become operational in 2021.

Sumitomo’s $2.58 billion coal plant in the central province of Khanh Hoa will also be another notable project expected to come into use by 2022, while Mitsui Oil Exploration is participating in a $1.27 billion gas pipeline project in the southern province of Kien Giang.

Small and mid-sized Japanese manufacturers, distributors and service companies have also stepped up spending, and more investors are buying into Vietnamese enterprises. For example, Sekisui Chemical acquired a 15 per cent stake in state-owned Tien Phong Plastic as Vietnam moves to reform state-owned enterprises.

During PM Phuc’s visit to Japan, the two countries are likely to ink a number of as-yet-unrevealed co-operation deals.

The Vietnamese prime minister will hold bilateral talks with PM Abe. Together with top leaders of the Mekong nations, he will also meet with Emperor Akihito, as well as other Japanese leaders.

At the 10th Mekong-Japan Summit, PM Phuc and other national leaders are set to adopt a new co-operation plan. Entitled “Tokyo Strategy 2018 for Mekong-Japan Co-operation”, it will establish three new main pillars of partnership. The three pillars - connectivity, people, and the environment - are to be established with the aim of contributing towards peace, stability and prosperity in the region and beyond.