Japan has chosen Vietnam as the first member country in the Asian Net Zero Emissions Community (AZEC) to receive Japan’s support for decarbonization efforts, chairman of Japan Bank for International Cooperation (JBIC) Maeda Tadashi affirmed.

The JBIC leader, who is concurrently the Special Advisor to the Cabinet of Japan, made the affirmation at his meeting with Vietnam’s Prime Minister Pham Minh Chinh on Monday in Tokyo, as part of Chinh's trip to Japan for the Commemorative Summit for the 50th year of ASEAN-Japan Friendship and Cooperation.  

Maeda also told PM Chinh that all key partners of Japan are in favor of Japan’s cooperation with Vietnam within the framework of the AZEC initiative, which was launched by Japanese PM Kishida Fumio to promote the use of clean energy and reduce greenhouse gas emissions.

The JBIC chairman pledged that he would continue to actively cooperate with Vietnam in greenhouse gas reduction toward fulfilling the country’s international commitment to achieve net-zero emissions by 2050.

Such cooperation is highlighted with Japan selecting Vietnam as the first nation to get its support under the above initiative, Maeda said.

As part of this support, JBIC and other Japanese agencies are offering financial assistance of up to US$8 billion for projects related to renewable energy, energy efficiency, hydrogen, ammonia, and CCUS (carbon capture, utilization, and storage) in AZEC countries until 2030, as outlined on the AZEC’s website.

The support will encompass assistance in developing energy roadmaps, deploying decarbonization technologies, and providing training for human resources.

Appreciating the AZEC initiative, the Vietnamese government chief asked the JBIC to support Vietnam in the implementation of mechanisms in relation to the Just Energy Transition Partnership (JETP) and AZEC.

He expressed deep appreciation for JBIC's provision of loans, which has played a crucial role in promoting Japanese investment in Vietnam.

This support, particularly in infrastructure and large-scale energy projects, has significantly contributed to the socio-economic development of the Southeast Asian nation and has strengthened the cooperation ties between the two countries.

PM Chinh suggested that the JBIC assist Vietnam in negotiations to launch clean energy and climate change response projects using loans from the bank at appropriate interest rates.

He also requested the bank to help further promote Japanese investment in Vietnam in areas that bring benefits to both sides, and to support Vietnamese businesses to engage more deeply in the global value chain.

"As a key lender to the Nghi Son Refinery and Petrochemical Complex project in Thanh Hoa Province, the bank is urged to intensify efforts in restructuring loans for projects at lower interest rates," PM Chinh told the bank leader. 

"This initiative aims to alleviate financial costs, thereby enhancing the operational efficiency of the project in line with the principles of 'harmonious benefits and shared risks."

Regarding this issue, Maeda said he would urge all related parties, including Japan’s Nippon Export and Investment Insurance, to accelerate negotiations to address issues facing the project and seek the best solutions for its development.

As an initiative by Japanese PM Kishida, AZEC is a platform of Asian countries that mainly focuses on decarbonization efforts, with its 11 members including Australia, Japan, and nine ASEAN nations, namely Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!