Sumitomo eyes more energy, railway, smart cities opportunites in Vietnam

Sumitomo seeks to further cooperation with Vietnam in the fields of energy, railways, and smart cities development, said Yukihito Honda, managing executive officer at the Japanese corporation.

Honda, CEO of Diverse Urban Development Group at Sumitomo, made the statement at a meeting in Hanoi with Prime Minister Pham Minh Chinh.

He added that Sumitomo wishes to make its North Hanoi Smart City project a symbol of Vietnam-Japan relations, the Vietnamese government's news portal reported.

The executive also reported on the corporation's activities in Vietnam, including the construction of Thanh Hoa Industrial Park phase 1, its participation in the North Hanoi Smart City project as a joint venture partner, and the Van Phong 2 gas-fired power plant project proposal.

In response, Prime Minister Chinh said he highly appreciates Sumitomo's investment projects in Vietnam.

"The projects all have large investment capital and spillover effects on the socio-economic development of localities where they are located and of Vietnam, contributing to promoting the two countries' very good relationship," Chinh noted.

The cabinet leader affirmed that the Government, ministries, and local administrations will create all favorable conditions for Japanese enterprises and Sumitomo to carry out business activities efficiently and sustainably, comply with legal regulations, promptly resolve problems, and put their projects into operation early.

Regarding the North Hanoi Smart City, Chinh asked the corporation to coordinate with its Vietnamese partner to implement the project "seriously, quickly, and in line with legal regulations, in the spirit of equality, harmonizing benefits, sharing risks, and combining Vietnamese and Japanese cultures".

Regarding the Van Phong 2 gas-fired power plant project in the south-central province of Khanh Hoa, the Prime Minister said he welcomed Sumitomo's proposal to convert the project into an LNG-fueled.

He assigned the Ministry of Industry and Trade to coordinate with the company in resolving necessary procedures. The Prime Minister also suggested Sumitomo study access to capital sources within the framework of the Asia Zero Net Emission Community (AZEC).

He asked Sumitomo to continue actively participating in urban railway projects in Ho Chi Minh City.

In reply, Yukihito Honda thanked the Government, the Prime Minister, and Vietnamese agencies for their attention as well as facilitation and timely handling of difficulties and obstacles for Sumitomo's investment projects.

He affirmed that that he will acclerate the projects so as they will be implemented quickly, seriously, effectively, and sustainably as directed by the Prime Minister.

North Hanoi Smart City project has seen little movement

After receiving an investment registration certificate from the Hanoi People's Committee in June 2018, the joint venture between Sumitomo Group and Vietnam's BRG Group started work on the $4.2 billion North Hanoi Smart City project in Dong Anh district (former district), Hanoi in 2019.

The project is expected to be implemented within nine years and over five phases, with the goal of completion by the end of 2032.

The 272-hectare project is located next to Nhat Tan bridge, which connects inner Hanoi with Noi Bai International Airport.

One of the highlights of the project is a 108-storey Financial Tower, considered the centerpiece of the project. This tower, expected to be 639 meters high, will be the tallest building in Vietnam and one of the tallest towers in Southeast Asia.

The complex also includes dozens of office buildings, mixed-use apartment buildings, hundreds of villas and townhouses, along with modern amenities such as schools, hospitals, and commercial areas.

In July 2023, the Hanoi People's Committee issued a decision to adjust the 1/500 detailed planning of the Smart City project. In November of the same year, North Hanoi Smart City Development Investment Joint Stock Company (NHSC) announced the implementation of the North Hanoi Smart City project.

In early 2024, the Ministry of Natural Resources and Environment (now part of the Ministry of Agriculture and Environment) requested a review of the height of this tower to minimize its impact on the related flight method system at Noi Bai International Airport.

The investor is only allowed to build a project with a height approved by competent authorities in accordance with the law.

By the beginning of this year, the actual implementation of the project has not seen much movement, partly due to problems in site clearance and legal procedures.

Recently, leaders of the Japanese government and Sumitomo have made visits and worked in a bid to soon realize this project.

Sumitomo Corporation is a multi-industry corporation, operating mainly in the fields of manufacturing, energy, smart cities, and production of electronic components.

As of March 31, 2025, the group had equity of $3.2 billion, about 83,300 employees worldwide, and a profit of $3.9 billion. The heavyweight ranked in the top 500 corporations in the world (Fortune Global 500).

During the last seven decades of operation in Vietnam, Sumitomo has invested in Thang Long 1 Industrial Park (Hanoi), Thang Long 2 (Hung Yen province), Thang Long 3 (Vinh Phuc, now part of Phu Tho province), Thanh Hoa Industrial Park (Thanh Hoa province), and Quang Tri Industrial Park (Quang Tri province, in form of a joint venture).

The corporation also participates as an EPC contractor in the construction of the Urban Railway No. 1 project in Ho Chi Minh City - Package No. 2 and in the 1,320 MW BOT Van Phong I thermal power project.

Sumitomo's industrial parks have attracted more than $6 billion in registered investment capital, creating nearly 100,000 jobs.