Northern Vietnam province seeks to terminate Japan-backed warehouse project MoU

Bac Ninh province authorities are seeking to abolish an MoU signed with Japan’s Mitsubishi on a planned high-rise warehouse project four years ago.

In its request to the Ministry of Foreign Affairs for an approval, the Bac Ninh People’s Committee said that the MoU was inked in November 2021 with Japan’s Mitsubishi Estate and Vietnam-based Western Pacific during Prime Minister Pham Minh Chinh’s official visit to Japan.

The parties agreed to explore cooperation on a multi-floor smart warehouse for lease at the Yen Phong 2A Industrial Park. In February 2022, Mitsubishi Estate’s subsidiary One MEA Holdings and Western Pacific signed a follow-up MoU to form a joint venture for the project.

However, as One MEA has not followed its investment plan, the two sides agreed to end their cooperation. Western Pacific has already returned the deposit to the Japanese firm, Bac Ninh authorities said.

As such, the provincial People’s Committee has proposed formally voiding its MoU with Mitsubishi Estate and Western Pacific.

Western Pacific, led by CEO Tran Anh Vuong – known locally as “Shark Vuong” for his appearance on Vietnam’s TV series Shark Tank – has been involved in the Yen Phong II-A since September 2019, when it was assigned to prepare planning and investment proposals for the 151-hectare industrial park. The company has contributed VND275 billion ($10.4 million) to the project.

According to the Ministry of Finance, Bac Ninh province, home to a Samsung factory, attracted 245 foreign-invested projects or over $4.68 billion in registered investment capital in the first eight months of this year, up 4.8% year-on-year. In 2025, the locality targets to lure $6 billion.

By far, Bac Ninh has hosted 3,363 FDI projects totaling $47.6 billion, being one of the largest FDI recipients in northern Vietnam.