Despite keen interest in traffic infrastructure development projects in Vietnam, Japanese investors are unlikely to participate in public-private partnership (PPP) projects without minimum revenue guarantees, said Nagai Katsuro, Deputy Ambassador of Japan to Vietnam.

Japanese enterprises are getting involved in the metro line No. 1 project in HCMC, connecting Ben Thanh Market in District 1 with Suoi Tien Park in District 9. The project is being financed by official development assistance loans

At a meeting on the progress of traffic projects with Deputy Minister of Transport Nguyen Ngoc Dong on July 2, Katsuro noted he expected the Vietnamese Ministry of Transport to closely cooperate with the Japanese side to accelerate the construction of major traffic projects in Vietnam.

He proposed the Vietnamese Government promptly submit proposals for the second urban railway project in Hanoi and adjustments to the total investment in the first metro line project in HCMC to the National Assembly (NA) for approval.

The Japanese deputy ambassador also urged Vietnam to complete the feasibility study for the North-South expressway project.

Katsuro said that Japanese firms want to take part in the construction and operation of some sections of the North-South expressway project under the PPP model.

In response to Katsuro’s remarks, Deputy Minister Dong said that the Ministry of Transport has coordinated with the HCMC and Hanoi governments to ensure the progress of traffic projects.

The Government will submit adjustments to the total investment in the first metro line project in HCMC and the urban railway No. 2 project in Hanoi to the NA in October.

As for the North-South expressway project, which is expected to be sent to the NA for consideration in October next year, the Ministry of Transport will prioritize building the Ninh Binh-Nghi Son and Dau Giay-Phan Thiet sections and will choose investors and contractors for these sections.

Dong said Vietnam has continuously improved the law on the PPP investment format, adding that the Ministry of Transport will create favorable conditions for investors to get involved in traffic projects following the PPP model.

SGT