Vietnamese enterprise to conduct $250m infrastructure projects in Indonesia

Vietnam Prime Minister Nguyen Xuan Phuc (centre) witnesses the signing of agreement for three infrastructure projects between Indonesia’s Nikko Sekuritas Indonesia and Viet Nam’s construction firm Licogi 16 on October 12 in Bali, Indonesia.-VNA/VNS Photo Thong Nhat

According to the agreement, Nikko Sekuritas Indonesia, one of Indonesia’s biggest investment banking firms, and the construction company Licogi 16 JSC of Viet Nam will together implement two construction projects in Indonesia – a $50-million financial tower in Jakarta and a 6.7km highway with estimated capital of $200 million – marking the first time a Vietnamese enterprise has conducted an infrastructure project in the neighbouring country.

At the same time, Nikko would invest $50 million into Licogi 16’s 50MW solar energy project in central Viet Nam.

The signing took place on the morning of October 12 as the Vietnamese Government leader is on a visit to Indonesia to attend the annual IMF-World Bank meeting on the popular tourist island of Bali.

Licogi 16, previously a State-run firm under the Ministry of Construction, had under its belt several critical large-scale projects including the Ha Long-Van Don express in the northeastern province of Quang Ninh, upgrades and expansion of National Highway No.1, and the water treatment facility at the Formosa Ha Tinh plant.

All three projects are slated to begin in early 2019.

On the occasion, PM Phuc held talks with Harianto Solichin, President Director of Nikko’s board of directors.

The Vietnamese leader applauded the agreement and expected further co-operation and more public-private partnership (PPP) projects between the two companies, both in Viet Nam and Indonesia.

He hoped that Nikko, with its experience, global network and financial capacity, would support Vietnamese enterprises in investing in Indonesia, and facilitate Indonesian firms’ investment in Viet Nam, especially in airports and sea ports.

The Vietnamese leader reaffirmed the Government’s commitment to maintaining social order and economic stability, improving the business environment for overseas firms to invest in Viet Nam.

For his part, Nikko’s President Director shared his impressions of Vietnam’s outstanding socio-economic development in recent times, which is made possible by the Government’s commitment to reforms.

He hoped that the PM and concerned authorities would create favourable conditions for the company’s projects in Vietnam.