Japanese enterprises are likely to pour large investments into environmental projects in Vietnam in the near future to fully tap its potentials, said a representative of the Japan External Trade Organisation (JETRO). 

JETRO Chief Representative in Vietnam Takimoto Koji (Source: sggp.org.vn)

In November, 25 Japanese firms operating in the field of environment, including those specialising in wastewater, urban waste treatment and disaster risk alert software design, made a fact-finding tour to Vietnam to study the market, JETRO Chief Representative in Vietnam Takimoto Koji spoke to Saigon Giai phong Newspaper. 

According to Takimoto, these companies have seen the market’s great potentials as the Vietnamese Government is paying much attention to improving the environment, while environmental service firms in Vietnam have yet to meet the market requirements. This is a good chance for Japanese businesses which are strong in the area, he said. 

At the same time, the Japanese Government has supported domestic firms planning to invest in Vietnam through ODA-related and public-private partnership support policies, Takimoto said, adding that Japan has also given flexible policies to private companies in terms of capital access. 

The JETRO representative also pointed to the environmental degradation in Vietnam and Ho Chi Minh City in particular, especially in natural water management. 

The massive and uncontrolled construction of concrete projects in HCM City has led to serious floods and pollution in canals, while air pollution due to overload traffic and inadequate solid waste treatment are threatening the city’s budget and local people’s living conditions as well as the city’s investment environment, he said. 

Takimoto noted that Hitachi Zosen Company of Japan is working with the Ho Chi Minh City Urban Environment Company to pilot a waste-to-energy project. If the project succeeds, the municipal authorities can expand the model with the support of the Japanese Government through ODA provision and PPP. 

However, to reduce the city’s budget for waste treatment, he suggested the city improve the classification of waste, while making it compulsory for local residents to classify household garbage before disposal. 

Statistics show that up to 6,000 Japanese firms are investing in Vietnam in various fields such as manufacturing, food processing, service and construction.

VNA