Japan finances Vietnam’s two mega projects

Japan will provide about 500 billion yen (roughly $6.1 billion) in financial assistance for Vietnam to undertake two infrastructure projects seen as key to promoting its economic growth.

The funding will be used for the construction of Lach Huyen port in the north and Long Thanh International Airport in the south, according to the Japanese daily of Nikkei.

Lach Huyen port is to cost an estimated 140 billion yen, with 120 billion yen to be covered by yen loans and the remainder jointly shouldered by Itochu Corp., Nippon Yusen KK and Mitsui O.S.K. Lines Ltd.

Construction of the port is expected to begin in 2015 by a joint venture formed by the Japanese companies said above and the Vietnam National Shipping Lines (Vinalines).

Long Thanh International Airport is estimated to cost over 300 billion yen.

Once completed, the airport will become one of the largest in Southeast Asia, with an annual capacity of 100 million passengers, mostly on international routes, and five million metric tons of cargo.

Tags: Vietnam Infrastructure