Japan to Develop More Infrastructure Projects in Vietnam

The Japanese Government will help its businesses to develop more infrastructure projects in Asia, including three worth JPY75 billion ($833 million) in Vietnam, the Vietnam News Agency said.  The Vietnamese projects comprise the construction of a water system in Hanoi by NGK Insulators Ltd. and Fuji Electric Holdings Co. and a biomass power plant on the outskirts of Ho Chi Minh City by Electric Power Development Co. (J-Power) and the installation of intelligent transportation systems on a Hanoi-Ho Chi Minh City highway by Central Nippon Expressway Co. The Japanese government will offer trade insurance and other support in case payments by Vietnam and other host countries are delayed or suspended. It will also offer insurance for the whole projects, including operations and upkeep. The Japanese firms will officially take over these projects early next month. Earlier the Japan International Cooperation Agency (JICA) Chief Representative in Vietnam Tsuno Motonori said his agency will sign loan agreements for key infrastructure projects in Vietnam this year.  The projects include a new terminal of the Noi Bai International Airport, the Noi Bai-Nhat Tan Expressway, North-South Expressway and Lach Huyen International Port. Japanese companies have to date mainly participated in construction and material supply in infrastructure projects in Asia. They want to get involved in operating and maintaining facilities as a source of stable long-term earnings.