Japan supports firms engaging in smart city building in Vietnam

The Japanese government will set up a fund worth 250 billion JPY (some 2.4 billion USD) to support Japanese companies' "smart-city" projects and to help further decarbonisation measures in Vietnam and other Southeast Asian nations (Illustrative photo: VNA)

The fund will consist of some 50 billion JPY from the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN), a government fund for infrastructure development, and a line of credit worth 200 billion JPY from the Japan Bank for International Cooperation (JBIC).

The government will encourage Japanese companies to participate in projects in 26 cities in 10 member countries of the Association of Southeast Asian Nations, including Hanoi, Ho Chi Minh City, Jakarta, Bangkok, Singapore and Kuala Lumpur.

Japan will ask 26 cities to present plans for developing smart cities by the end of this year and is planning to select eligible projects by spring. The government expects Japanese companies to work out basic plans for the selected cities and conduct feasibility studies.

To promote smart-city projects, JOIN is considering measures such as the formation of joint ventures with Japanese and local companies. JBIC will extend the credit line to environmental programmes such as those for cutting greenhouse gas emissions, increasing the use of renewable energy and preventing air and water pollution.

According to the Japanese government, smart-city plans are increasing in ASEAN members. Among Japanese companies, Tokyu is involved in a development project in Vietnam’s Binh Duong province, while a consortium of companies based in Yokohama has participated in a project in the Thai province of Chonburi.

Trading houses Sojitz and Mitsubishi are separately promoting the development of smart cities near Jakarta, Indonesia./.

VNA