Japanese government supports companies involved in Vietnam’s infrastructure projects

The Japanese Government is teaming up with domestic companies to build, operate and maintain infrastructure facilities in Asia and other emerging markets, including Vietnam, a local daily reported.

The government will offer trade insurance and other support in case payments by Vietnam and other host countries are delayed or suspended. It could also offer insurance covering projects as a whole, including operations and maintenance.

Japanese firms’ limited involvement in infrastructure projects in Asia is attributed mainly to construction or supplying materials. They see getting involved in operating and maintaining facilities as a source of stable long-term earnings.

Since it believes that Japan’s environmental technology can be used in a wide variety of fields, the government plans to help Japanese companies win bids to develop infrastructure. It will focus on nuclear and energy-saving thermal power plants, water systems, railways, recycling operations, and telecommunications.

It will draw up guidelines on the development of strategies to help Japanese firms win infrastructure orders over the next decade or so and will consider providing Japanese consortiums with a few hundred million yen.

Around 2 percent, or some US$1 trillion, of the world’s gross domestic product is annually spent on constructing and maintaining infrastructure, according to the Ministry of Economy, Trade and Industry. With infrastructure demand rising in emerging markets, such spending will likely reach US$41 trillion over the 25 years from 2005.

VOVnews/VNA

Tags: Vietnam's infrastructure, Vietnam's infrastructure projects