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Japan and Vietnam sign cooperation agreements worth $40 million

Out-Law News | 28 Oct 2020 | 10:07 am | 1 min. read

Japan and Vietnam have signed $40m worth of cooperation agreements during the visit of Japanese Prime Minister Yoshihide Suga to Vietnam.

According to a report of the Ministry of Commerce of the People's Republic of China they agreed to implement cooperation projects in climate change, natural disasters prevention and control, improving capacity in coping with drought and saltwater intrusion, environmental protection, and e-government building.

The two sides pledged to cooperate at regional and international forums such as the Association of Southeast Asian Nations (ASEAN), Mekong and the United Nations, and to advance economic connectivity mechanisms on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

Japan is one of the largest investors in Vietnam with foreign direct investment (FDI) with investments valued up to $8 billion in 2019, which accounted for around 31% of all foreign investment in Vietnam in 2019. Japan has nearly 4,200 projects in Vietnam with total FDI monetary value worth $57.9bn, according to Vietnam Economic Times.

"The cooperation agreements not only signify the increasing cooperation of Asian countries, the focus of future investments should also be noted," said I-Ching Tseng, an infrastructure expert in Pinsent Masons, the law firm behind Out-Law.

"The effects of climate change are increasingly apparent, and are felt by individuals, corporations and governments alike. Cooperation between governments is particularly important in forging and strengthening regional and global efforts in combating the effects of climate change. The cooperation agreements between Japan and Vietnam is an encouraging example for other countries to learn from and to follow," she said.