- JBIC pledges funding for 15 green projects in Vietnam under the AZEC initiative, valued at over $20 billion.
- Vietnam seeks support from JBIC and Japanese firms in key infrastructure areas like railways, ports, and nuclear energy.
- Ongoing efforts continue to restructure the Nghi Son Refinery project with JBIC’s support to improve its financial health.
The Japan Bank for International Cooperation (JBIC) has committed to providing funding for Japanese companies to undertake green transition projects in Vietnam as part of the Asia Zero Emission Community (AZEC).
The commitment was disclosed by Steel Chairman Maeda Tadashi when he met Prime Minister Pham Minh Chinh in Hanoi on Sunday, as per the government's news site.
Chinh stated that he was grateful to JBIC for assistance with policy dialogues and financing programs that provide funding for infrastructure and energy projects in Vietnam, which led to more Japanese investments.
He also emphasized JBIC’s funding for investment initiatives by Japanese small and medium-sized businesses in Vietnam. The bank has recently provided a loan exceeding $800 million for the Block B gas development project, facilitating its revival, according to the leader.
The Prime Minister called on JBIC to keep backing Vietnam’s green transition, emphasizing the rapid release of funds for Japanese firms to execute 15 green initiatives in Vietnam valued at more than $20 billion.
In April, Japanese Prime Minister Ishiba Shigeru emphasized during his trip to Vietnam that Japan aims to implement the 15 projects under the AZEC framework.
The Prime Minister stated that Vietnam is undertaking various significant infrastructure initiatives that may be revolutionary, such as expressways, seaports, airports, especially urban and high-speed railways, as well as nuclear energy.
He urged JBIC and Japanese firms to back these initiatives by providing funding, transferring technology, training personnel, and collaborating on research.
Regarding the Nghi Son Refinery and Petrochemical project in Thanh Hoa province, a collaboration among Vietnamese, Kuwaiti, and Japanese partners, Chinh noted that although most stakeholders are currently making profits, the Vietnamese counterpart still faces losses.
In reaction to the Prime Minister’s request for restructuring, the stakeholders have initiated the reorganization of the project's structure and team, modifying feedstock procurement and energy supply, while reducing expenses.
Praising JBIC’s initiatives to enhance the project’s circumstances, the leader reiterated the call for the bank, as the principal lender, and chairman Maeda personally to stay involved and advocate for increased cooperation among stakeholders.
He specifically emphasized the importance of ongoing backing for the project's financial reorganization to improve operational efficiency, based on the principles of honesty, trust, and "harmonizing interests, sharing risks", establishing a foundation for the second phase.
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JBIC chairman Maeda lauded Vietnam’s significant advancements in recent years and its increasing global stature, pointing out recent important resolutions from the Politburo—Vietnam’s highest decision-making assembly, such as initiatives to encourage private sector growth and promote a sustainable energy transition.
The chairman remarked that JBIC and Japanese firms are prepared and enthusiastic to engage in infrastructure initiatives in Vietnam, including those utilizing the transit-oriented development (TOD) approach.
Significantly, Japanese companies with considerable expertise have shown substantial interest in aiding the execution of Vietnam's North-South high-speed railway project, he stated.
Concerning the obstacles at the Nghi Son Refinery and Petrochemical project, he noted that JBIC has been diligently collaborating with all stakeholders.