Japan firms urge Vietnam to resolve hurdles in key infrastructure, energy projects

Many Japanese companies have urged Vietnam to resolve lingering issues in several major infrastructure and energy projects as the country's third-largest foreign investor remains committed to strengthening cooperation with the Southeast Asian nation.

The call was made at a meeting between Prime Minister Pham Minh Chinh and Japanese businesses in Hanoi on Tuesday – the second such dialogue this year.

Japanese investors expressed concern over delays in key projects such as the Ben Luc-Long Thanh Expressway, the Ho Chi Minh City Metro Line No.1’s Ben Thanh-Suoi Tien section, the Vietnam-Japan Friendship Cho Ray Hospital, the Vietnam-Japan University, and the financial restructuring of the Nghi Son Refinery and Petrochemical Complex.

They also proposed accelerating other initiatives, including metro projects in Hanoi and HCMC, the North Hanoi Smart City, and other developments. Hurdles in promoting hybrid vehicle production in Vietnam were also raised.

In response, PM Chinh stressed that cutting emissions and addressing climate change require joint efforts from both the government and businesses, including Japanese firms. He proposed establishing a joint task force to review and resolve outstanding issues by the end of August, based on balanced interests and shared risks.

The Prime Minister also directed ministries and local authorities to coordinate with the Japanese side on new projects in energy and railways, and to consider Japanese recommendations on administrative procedures, land, taxation, and food safety regulations.

He encouraged Japanese companies to expand investment in Vietnam, particularly in high-quality workforce training, technology transfer, and smart governance. The cabinet leader also sought Japan’s financial support, especially for Vietnam’s plan to develop international financial hubs.

Chinh expressed his expectation that Japanese partners would help Vietnamese enterprises engage in the supply and production chains of Japanese and global corporations.

At the meeting, Japanese Ambassador to Vietnam Ito Naoki noted that both governments had agreed to improve the investment climate and that Japanese businesses are closely watching Vietnam’s reform efforts.

He welcomed progress in resolving bilateral project issues, adding that Japan plans to propose a new project and loan packages under the Asia Zero Emission Community (AZEC) framework.

As of end-July, Japan had 5,600 valid projects in Vietnam with total registered investment capital of $79.4 billion, ranking third among 151 countries and territories investing in the country. Notable projects include the Nghi Son refinery, smart city developments, and the Nghi Son 2 thermal power plant. Conversely, Vietnam has invested in 126 projects worth $20.5 million in Japan to date.

From April 27–29, Japanese Prime Minister Ishiba Shigeru visited Vietnam, marking his first trip to the country since taking office. It was also the first official visit to Vietnam by a Japanese prime minister since the two countries elevated their ties to a comprehensive strategic partnership for peace and prosperity in Asia and the world in November 2023.