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Image source, AFP / Getty Images
Japan and Vietnam agreed on Monday to strengthen economic and security ties
Economic cooperation and investment promotion are high on the Prime Minister of Japan’s travel agenda.
Mr. Suga Yoshihide’s visit also coincided with an effort to diversify Japan’s supply chains and reduce dependence on China by bringing production home or to Southeast Asia.
Japan is seeking to diversify its supply chain to reduce post-COVID-19 pandemic risks, including reliance on imports from China, such as masks.
Currently, the Japanese government is subsidizing companies to bring production to Southeast Asia, both geographically convenient and also advantageous in terms of labor costs.
Of the 30 companies selected so far to participate in a subsidy program of more than 23 billion yen, half of them manufactured from medical protective suits, disinfectant water to auto parts. they plan to deploy in Vietnam.
“I affirm to Prime Minister Suga that Vietnam is ready to create favorable conditions in terms of land, human resources and political environment to join forces for Japanese companies to invest and do business successfully in Vietnam. Nam,” said Prime Minister Nguyen Xuan Phuc.
The Prime Minister of Vietnam also mentioned the implementation of a number of large projects that the two sides agreed to promote and “projects facing obstacles”.
Image source, Reuters / Getty Images
This is Mr. Suga’s first international trip as a Japanese leader.
There are currently two projects cooperating with Japan that are believed to have problems, namely the subway project in Ho Chi Minh City with late payment to the contractor and the Vietnam-Japan University project.
During their first day of work in Vietnam, Prime Minister Suga Yoshihide and his Vietnamese counterpart witnessed the signing of many cooperation agreements.
Of note is the memorandum of cooperation and investment in the O Mon 2 Thermal Power Plant Project – with the participation of Marubeni Corp for a value of 1.3 billion dollars and the MoU on the development of the Energy and Gas project. Quang Ninh 1500MV – Valued at $ 1.9 billion between Tokyo Gas Co Ltd and PetroVietnam.
It is known that the signing ceremony also includes a memorandum of cooperation to promote investment and development of the Aeonmall Trade Center project in Ho Chi Minh City, worth $ 250 million, and the issuance of a Certificate of Registration of Investment between the Popular Committee of Vinh Phuc province. and ToTo VN Company Limited, worth $ 100 million.
It is known that the two sides also signed a memorandum of understanding on the development of phase 3 of the Thang Long 2 Industrial Park and an agreement to promote Japanese investment in the manufacturing industry in Hung Yen, worth 83 million dollars.
There are also two other important cooperation memorandums related to the construction of the Fujikin Research and Development Center in Danang High-Tech Park ($ 35 million) and the development cooperation of medical exam management. medical tourism and tourism in Japan (23 million dollars).
In the agricultural sector, Prime Minister Suga said he would cooperate to soon implement the export of Japanese unshu mandarins to Vietnam, simplify the inspection and supervision mechanism, and open the door to the export of Vietnamese longan fruit. for Japan, according to Vietnamese media.
Last weekend, Japan’s largest cosmetics and pharmaceuticals chain, Matsumoto Kiyoshi, also set up its first store in Ho Chi Minh City.
With AEON, Japan’s largest retail chain, Vietnam is also a foreign market that they see as a key point for investment and development.
