Minister of the MPI Nguyen Chi Dung. Photo: MPI
(MPI) – On April 12th 2017, in Tokyo, Japan, the MPI of Vietnam in collaboration with Japan Business Federation (Keidanren) held Workshop on investment opportunities in transportation infrastructure and energy in Vietnam.
Speaking at the Workshop, Minister Nguyen Chi Dung thanked Keidanren for enhancing economic relations in general and investment in particular between Japan and Vietnam, including activities in investment promotion. Vietnam – Japan relations has been developing well. On the basis of a deep strategic partnership for peace and prosperity in Asia, Japan ranks second among foreign investors in Vietnam, ranks third among tourism partners and ranks fourth among trading partners of Vietnam. Japan has invested about 3,355 projects with total registered capital of US$ 42.5 billion and is emerging as the biggest M&A partner of Vietnam.
The Minister assessed that investment of Japanese businesses is effective, proportion of disbursed capital is high, life of labors is guaranteed, contributing to the process of socio-economic development, economic restructuring of many localities in Vietnam, promoting bilateral cooperation more actually and effectively over the last time.
Regarding economic development situation of Vietnam, Minister Nguyen Chi Dung said that Vietnam has got an open economy, GDP was over US$ 220 billion, trade turnover equals 1.6 times of GDP, total registered FDI capital was US$ 300 billion, including US$ 158 billion of its disbursement. Goal of economic development of Vietnam in 2016-2020 is set at 6.5% to 7% per year of GDP growth, towards sustainable and green - clean development with three major motivations, namely export, investment expansion and domestic market development. Private and FDI enterprises are driving force for economic development, national competitiveness. Vietnam has been improving business climate drastically in order to attract all resources, creating and developing economy towards simplifying procedure and transparency in conformity with international practices and commitments, meeting the standards of ASEAN 4 in 2017.
As for infrastructural development, Japan is the biggest bilateral ODA partner of Vietnam. Many transportation infrastructure works, which are symbols of bilateral cooperation as well as motivation of socio-economic development, have been using effectively. Japanese contractors are always appreciated for prestige, quality and progress.
Developing a synchronous and modern transportation system is one of three strategic breakthroughs to raise national competitiveness. Total needed investment capital for infrastructural development in Vietnam is US$ 48 billion for period 2016-2020 (including US$ 30 billion for road, US$ 5.5 billion for railway, US$ 4.5 billion for airline, US$ 3 billion for maritime road…). In which, approximately US$ 14 billion will come from socialized resources, especially FDI capital for national key and environmental projects. So Japanese businesses could invest in the form of PPP, establishing a joint venture or a 100% foreign owned company, joining M&A in SOEs, BOT, and BT… In the coming time, Vietnam will publish the list priority projects invested in the form of PPP with the preparation plan for counterpart fund from the Government in the fields of infrastructure, environment, logistics…
Regarding energy, Japan is a foreign partner investing most in energy projects of Vietnam. Besides Nghi Son Refinery and Petrochemical Joint Venture that will start commercial operation in the end of 2017, Japanese investors have also involved in 7 projects on thermal power plants with total capacity of about 9,400 MW in various deployment phases and total expected investment capital of US$ 17.2 billion.
Vietnam Government has approved the revised National Power Development Master Plan for the 2011-2020 period with the vision to 2030. Thereby, in order to ensure national energy security, satisfy the requirements for socio-economic development, it is necessary to add alternative power sources, especially accelerate the expansion of renewable power sources and increase the share of energy from renewable sources in total energy sources to 7% in 2020 and 10% in 2030. Vietnam sets the goals raising the wind power capacity to 2.5 billion kWh in 2020 and 16 billion kWh in 2030 from a negligible amount now. It also set the goals increasing solar power capacity to 1.4 billion kWh in 2020 and 35.4 billion kWh in 2030.
Vietnam Government will continue making efforts to remove the institutional obstacles, particularly the purchase price of renewable energy in full compliance with market principles, ensuring reasonable economic benefits for investors, attracting businesses to develop renewable energy projects. It is also reviewing and will approve the revised wind power support mechanism in Vietnam soon, which is an important drive to attract investors to develop wind energy in the future. It will consider to simplify administrative procedures for thermal power plant projects in the form of BOT, as well as guarantee payment foreign currency to ensure the reasonable benefits of investors. Besides, Vietnam urges Japanese businesses to continue investing in its potential renewable energy projects.
In the coming time, Minister Nguyen Chi Dung desired Keidanren to continue coordinating with the MPI to promote bilateral cooperation and deploy Vietnam – Japan Joint Initiative phase 4 effectively. He also encouraged Japanese businesses to invest in supporting industry, mechanics, electronics, modern agriculture, biology, information technology, health and pharmacy, high quality services – tourism, finance – banking, through M&A projects and support the thriving startup ecosystem in Vietnam.
The Minister emphasized that the MPI and other ministries, branches and localities of Vietnam will facilitate and accompany Japanese businesses to effectively carry out investment projects long-term in Vietnam on the basis of mutual benefit./.
Ministry of Planning and Investment