Mitsui eyes new opportunites in Vietnam's energy sector, projects related to carbon emission reduction

Mitsui & Co., Ltd. plans to expand its investment in Vietnam in the energy sector and projects related to carbon emission reduction, president and CEO Kenichi Hori told Prime Minister Pham Minh Chinh at a Thursday meeting in Hanoi.

The Japanese giant also wants to enlarge its export of Vietnamese products with added value, especially in the agriculture and aquaculture sectors, including shrimp, the government's news portal reported.

Other fields of interest are wood pellets, food, circular economy, technology consultancy and transfer, training, and development of human resources in science and technology.

Vietnam is developing rapidly and strongly with a long-term vision. Mitsui is committed to long-term cooperation and investment, and hopes to continue contributing to the country's development vision, including the energy sector, Kenichi was quoted by the news portal as saying.

The executive also reported on new developments in the Block B-O Mon gas and power complex project. He said he highly appreciates the capacity of Vietnam Petroleum Technical Services Corporation (PTSC), a subsidiary of Petrovietnam, and will work with the Vietnamese partners to speed up the project.

The Block B-O Mon comprises three components: the development of the Block B gas field (upstream, located off southwest Vietnam), the Block B-O Mon gas pipeline (midstream), and four O Mon gas-fired power plants (O Mon 1, 2, 3, and 4) (downstream), with a total expected installed capacity of 3,800 MW. The total investment for the entire chain is nearly $12 billion.

Its shareholders are Petrovietnam, Petrovietnam Exploration & Production, Japan’s Mitsui Oil Exploration (MOECO), and Thailand’s PTT Exploration and Production Public Company (PTTEP).

Mitsui & Co., Ltd. has been investing in Vietnam since 1991 and is currently expanding its business and investment activities in many fields, including energy, infrastructure, chemicals, mineral and metal resources, steel, information and communication technology (ICT), food and retail, garment and textile, and transportation.

Notable investment projects include the Block B-O Mon (through subsidiary MOECO), Minh Phu Seafood Corporation, and Vina Koei Steel.

Prime Minister Chinh noted that the Vietnam-Japan Comprehensive Strategic Partnership is now in a period of strong, comprehensive development, which is increasingly profound and substantial with high political trust. Japan is Vietnam's number 1 partner in ODA and is among the country's leading partners in trade, investment, labor, and tourism.

"The effective operations of Mitsui and other large Japanese enterprises in recent times have made positive contributions to Vietnam's economic development, such as enhancing technology transfer, increasing export revenue, creating jobs, and paying taxes to the state budget," the Prime Minister stressed.

He said he welcomed Mitsui for its strategic and long-term investment in Vietnam, especially its determination to invest in the Block B-O Mon project, which has been implemented very quickly in recent times, as well as Mitsui's plan to expand business in the country in the coming time.

"Vietnam is determined to achieve double-digit growth in the coming years, so the demand for energy is very large. With a vision of a 100-year cooperation, Mitsui and the chairman should continue to pay attention to promoting cooperation contents between Mitsui and Vietnamese enterprises.

"It should further speed up the progress of the Block B-Omon and put it into operation early; expand operations and markets; improve efficiency in the energy sector (including wind power, solar power, oil and gas exploitation, combustible ice, etc.); and develop power sources."

The group should also promote cooperation in the fields of fisheries and trade; establish research and development centers on fisheries and energy; transfer technology; train human resources; and enhance cooperation with Ha Long University.

The Prime Minister added that he welcomed Mitsui’s plan to continue promoting the export of value-added products from Vietnam to international markets. "This is an orientation in line with the goal of improving growth quality and increasing the processing and technology content in Vietnam’s export structure."