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Vietnamese, Japanese PMs agree on orientations for future ties

Prime Ministers Nguyen Xuan Phuc and Shinzo Abe reached high consensus on major orientations and specific measures to push forward the extensive strategic partnership between Vietnam and Japan in a more comprehensive, practical and effective manner during their talks in Tokyo on June 6.


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Prime Ministers Nguyen Xuan Phuc and Shinzo Abe at the press conference



PM Phuc affirmed that Vietnam consistently considers Japan a top and long-term economic partner and attaches extreme importance to the strategic cooperation in economy with Japan.

PM Abe highly valued Vietnam’s increasingly important role in the region and the world and vowed to provide strong support for Vietnam’s development with the involvement of Japanese small and medium-sized enterprises, corporations and research institutes.

The two PMs gave high estimations to the first State visit to Vietnam by the Emperor and Empress, and agreed to strengthen political trust, regularly maintain high-level visits and meetings, and improve the efficiency of the existing dialogue mechanisms.

Abe promised full support for Vietnam to successfully hold the Asia-Pacific Economic Cooperation (APEC) Summit in the central city of Da Nang in November 2017.

Both sides were committed to collaboration in national defence-security, the United Nations peacekeeping mission as well as post-war recovery.

They vowed to promote economic connectivity via extending links across investment, trade, official development assistance (ODA), high-tech agriculture and labour.

Host and guest were unanimous in promoting Japanese investments in Vietnam via effectively launching the sixth stage of the Vietnam-Japan Joint Initiative and strengthening public-private partnership.

They asserted close cooperation to launch action plans of six sectors named in Vietnam’s industrialisation strategy within the Vietnam-Japan cooperation framework until 2020 with a vision to 2030 and speed up the progress of major infrastructure projects such as the North-South Highway, Hoa Lac High-tech Park and urban railway.

The fourth high-level dialogue on agriculture will be held soon this year while procedures to facilitate Vietnam-grown litchi and longan’s access to Japan and Japanese orange and tangerine’s entry into Vietnam will be accelerated.

The leaders agreed to step up cooperation across education, human resources training and locality-to-locality affiliations.

The host leader affirmed support for Vietnam to carry out a project on improving political system operation and training managerial officials at all levels, particularly those in strategic positions. Japan will initially train 800 Vietnamese master and doctorate degree holders in the next five years.

The leaders agreed to promote cultural, sports and people-to-people exchanges while working closely together to celebrate the 45th anniversary of bilateral diplomatic ties in 2018.

On regional and global issues of shared concern, they vowed close coordination at multilateral forums such as ASEAN, APEC, Asia-Europe Meeting (ASEM), and the United Nations.

Regarding the East Sea issue, they underscored the importance of ensuring peace, security, maritime and aviation safety and freedom, and called on parties concerned to refrain from unilateral actions, including militarising, changing the status quo, complicating and extending the disputes in the East Sea; promote the settlement of disputes by peaceful means, fully respect diplomatic and legal processes in line with international law, including the 1982 UN Convention on the Law of the Sea; fully and effectively implement the Declaration on the Conduct of Parties in the East Sea (DOC) and promptly reach a Code of Conduct in the East Sea (COC).

After their talks, the two PMs witnessed the exchange of 14 signed documents between Vietnamese and Japanese ministries and agencies.

The documents include the diplomatic notes for the exchange of four official development assistance (ODA) projects worth 100.3 billion JPY (roughly 912 million USD).

Others are diplomatic notes for the exchange of three nonrefundable aid projects valued at 2.93 billion JPY (26.6 million USD), covering the operation of reservoirs in case of emergencies and effective flood management through the inclusive natural disaster management information system; and the Human Resources Development Scholarship Programme in 2017 and 2018.

The two leaders then met with the press to inform major outcomes of their talks, during which they stressed that the two sides reached many important common perceptions in order to deepen the Vietnam-Japan extensive strategic partnership across fields in the time ahead, especially by enhancing mutual political trust, promoting economic ties and closely cooperating with each other in regional and international issues of shared concern.

PM Shinzo Abe said Japan, with its outstanding technologies and experience, is resolved to contribute to building high-quality infrastructure, improving the investment environment and developing human resources in Vietnam, thus creating business opportunities that bring benefits to both sides.

Regarding the wave of protectionism and anti-globalisation, the Japanese PM pledged that he will work together with his Vietnamese counterpart to push up free trade and investment.

Japan will comprehensively support Vietnam’s hosting of the APEC Economic Leaders’ Meeting slated for November in the central city of Da Nang, he committed.

The two countries will also join hands with each other to soon materialise the Trans-Pacific Partnership (TPP) agreement and the Regional Comprehensive Economic Partnership (RCEP).

PM Nguyen Xuan Phuc affirmed the Vietnamese Government’s resolve to effectively use Japan’s ODA, build a transparent investment environment, create optimal conditions for Japanese investors and seriously implement commitments made at the investment promotion conference on June 5.

During the PM’s visit, the two countries’ ministries, agencies and localities signed 43 foreign direct investment (FDI) documents valued at over 22 billion USD, he said.

Vietnam welcomes and backs Japan’s initiatives to ensure the economic prosperity, freedom of trade and maritime safety on the basis of respecting the UN Charter and international law, as well as independence and sovereignty of countries, for peace, stability, cooperation and development in the region and the world at large, the PM said.

Prime Minister meets Japanese party, local leaders

Prime Minister Nguyen Xuan Phuc hosted receptions for Chairman of the Japanese Communist Party Kazuo Ishii, President of the New Komeito Party Natsuo Yamaguchi, and President of the Democratic Party Murata Renho in Tokyo on June 6.




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Prime Minister Nguyen Xuan Phuc (R) and Chairman of the Japanese Communist Party Kazuo Ishii



The PM informed them about the recent developments of extensive strategic partnership between the two nations and hoped that the parties would continue supporting the Japanese government in promoting ties with Vietnam.

The host party leaders congratulated Vietnam on its achievements under the leadership of the Communist Party of Vietnam over the past years and wished to continue developing all-around cooperation with Vietnam for the benefit of the two peoples, and for peace, stability and development in the region and the world.

Meeting President of the Japan International Cooperation Agency (JICA) Shinichi Kitakao in the afternoon the same day, Phuc thanked JICA for its support over the past 25 years, and suggested JICA continue its provision of official development assistance (ODA) for Vietnam to develop large-scale infrastructure projects, launch six industries’ action plans under the country’s industrialisation strategy, and train human resources for the industrial sector.

The Vietnamese leader also met President of the Japan-Mekong Parliamentary Friendship Association Ryu Shionoya and Chairman of Canon Inc. Mitarai Fijio.

In a conversation with Governor of Aichi prefecture Hideaki Omura, the PM expressed his satisfaction with the amity between Vietnamese localities and Aichi prefecture, with nearly 150 Aichi firms investing in Vietnam, accounting for 20 percent of the total number of Japanese enterprises in the country, and over 13,000 Vietnamese living and working in Aichi.

He asked the governor to boost Aichi businesses’ investment in Vietnam in automobiles, support industry, agriculture, reception of Vietnamese apprentices, people-to-people and cultural exchanges, especially on the occasion of the 45th anniversary of bilateral diplomatic ties in 2018.

Talking with Governor of Kanagawa prefecture Kuroiwa Yuji, Phuc hailed the governor’s initiative to hold the Vietnam festival in the locality and establish the Kanagawa industrial park in the northern province of Hung Yen.

The leader proposed Kanagawa continue bolstering locality-to-locality cooperation and offering support in wastewater treatment and environment protection.

The two governors said Aichi and Kanagawa businesses are keen on doing business in Vietnam, ready to assist the country in fields of strengths. The prefectures wish to welcome high-quality Vietnamese workers, they said.



Vietnam, Japan issue joint statement on deepening partnership

Prime Ministers of Vietnam and Japan Nguyen Xuan Phuc and Shinzo Abe have reaffirmed their determination to foster the Vietnam-Japan relationship in a comprehensive and extensive manner in a joint statement on deepening the two countries’ extensive strategic partnership.

The following is the full text of the joint statement which was issued during Prime Minister Nguyen Xuan Phuc’s official visit to Japan from June 4-8.

“At the invitation of Prime Minister of Japan H.E. Mr. Shinzo Abe, Prime Minister of the Socialist Republic of Vietnam H.E. Mr. Nguyen Xuan Phuc paid an official visit to Japan. During the visit from 4 to 8 June 2017, Prime Minister Nguyen Xuan Phuc was received in audience by Their Majesties the Emperor and the Empress of Japan, held a summit meeting with Prime Minister Shinzo Abe, and had meetings with other Japanese political and economic figures, attended and addressed at the Vietnam Investment Conference with Prime Minister Shinzo Abe. Prime Minister Nguyen Xuan Phuc also visited some prefectures of the Kansai region of Japan.

The development of Vietnam – Japan relations

1. Both sides noted with satisfaction the robust, comprehensive and substantive growth of the Vietnam-Japan relationship in all areas since its upgrade to the “Extensive Strategic Partnership for Peace and Prosperity in Asia” in 2014. Mutual visits and contacts by high-level leaders of both countries have taken place on a regular basis, contributing to strengthening mutual political trust. Bilateral economic, trade and investment ties have expanded significantly, helping to promote the connectivity between the two economies. Cooperation in the areas of defense and security, agriculture, science and technology, education and training, environment, climate change response, labor, construction, information, health, culture, tourism, sports and province-to-province and people-to-people exchanges have seen substantive progress.

2. Prime Minister Shinzo Abe highly valued the achievements in socio-economic development of Vietnam thanks to the implementation of the reform (Doi Moi) policy during the past 30 years as well as Vietnam’s efforts for promoting economic restructuring and growth model transformation to step up national industrialization and modernization at present. Prime Minister Nguyen Xuan Phuc highly valued achievements in the implementation of the Abenomics for Japan’s economy, and expressed his belief that the Japanese economic growth will firmly contribute to the regional and global economic development.

3. Prime Minister Nguyen Xuan Phuc expressed his gratitude to Japan, the largest donor providing Official Development Assistance (ODA), for the effective assistance to Vietnam's sustainable social and economic development, and poverty reduction. He also highly valued the active role and contribution by Japanese companies to the economic development and national construction in Vietnam. Both leaders shared the intention to cooperate in resolving the bottlenecks which hinder smooth implementation of Japan’s ODA projects.

4. Both leaders emphasized that Vietnam and Japan are important partners to each other with shared strategic interests. They confirmed that the two countries are presented with favorable conditions to further deepen the Vietnam-Japan extensive strategic partnership. Prime Minister Nguyen Xuan Phuc reiterated that Japan continued to be a top and long-term partner of Vietnam, and hoped that Japan would continue to play an active and constructive role in international and regional issues. Prime Minister Shinzo Abe highly appreciated Vietnam's increasingly important and active role in international and regional issues, and reaffirmed the importance Japan attaches to Vietnam in its foreign policy in the Asia-Pacific.

5. Both leaders reaffirmed their determination to foster the Vietnam-Japan relationship in a comprehensive and extensive manner by further enhancing political trust, improving the cooperation mechanisms, promoting economic connectivity, strengthening human resources development cooperation, and cooperating closely on regional and international issues. Both leaders shared the intention to maintain regular exchange of visits and contacts between high-level leaders, political parties and parliaments, including at multilateral forums.

During the visit, both sides signed many cooperation frameworks between their ministries, agencies, local authorities and businesses.

Political, Defense and Security Relations

6. Both leaders shared the desire to strengthen cooperation in defense and security areas, to maintain and enhance the effectiveness of dialogue mechanisms, and to promote the exchange of delegations at various levels. They shared the intention to enhance cooperation in building capacity in humanitarian assistance and disaster relief, as well as in participating in the United Nations Peacekeeping operations, and to promote cooperation in defense equipment and technology, in information technology and in human resources development, as appropriate. Both leaders will continue to consider the possibilities of cooperation in the Vietnamese efforts in overcoming the damage caused by the war through removing landmines and unexploded ordinances and dioxin upon concrete requests by the Vietnamese side.

7. Both leaders confirmed the intention to enhance cooperation in responding to non-traditional security issues, including cyber-security, and in countering cyber-crimes, international terrorism and transnational crimes.

8. Both leaders highlighted the commitment to strengthen maritime security and safety cooperation such as search and rescue and anti-piracy measures, including through information exchange between coast guard agencies of both countries and cooperation under the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) framework. Prime Minister Shinzo Abe pledged to assist Vietnam in strengthening maritime law enforcement capability, including human resource development. Prime Minister Nguyen Xuan Phuc highly appreciated Japan’s assistance to enhance maritime law enforcement capability, including the provisions by Japan of used vessels and new patrol vessels and defense capacity building assistance, and welcomed vessels of the Japan Maritime Self-Defense Force and the patrol ships of the Japan Coast Guard to visit Vietnam in accordance with the Vietnamese law.

9. Both sides shared the view on the importance of arms export control to counter the proliferation of weapons of mass destruction.

Economic, trade, investment and energy cooperation

10. Both leaders shared the intention to closely collaborate in strengthening connectivity between the two economies as stated in the 2015 “Joint Vision Statement on Vietnam-Japan Relations" with focus on linking their economic development strategies, production capacity and human resources on the mutually complimentary, mutually reinforcing and mutually beneficial basis.

11. Both leaders shared the intention to maintain their close collaboration to make maximum use of the existing dialogue mechanisms such as the Vietnam-Japan Cooperation Committee, the Vietnam-Japan Joint Committee on Industrial, Trade and Energy Cooperation and the Japan-Vietnam Agricultural Cooperation Dialogue, as well as other ongoing dialogue mechanisms in ODA, investment, labor, science and technology, justice, environment, construction, among others. They highly valued the outcomes of the Vietnam Investment Conference on 5th June 2017.

12. Both leaders shared the intention to promote their bilateral trade cooperation, striving to realize the goal of doubling two-way trade and investment from 2014 till 2020.

13. Noting that Vietnam’s economic development is very important for the region, Prime Minister Shinzo Abe expressed his continued and strong support to Vietnam's sustainable economic growth through cooperation in quality infrastructure development, energy, climate change response and human resources development. Both sides witnessed with delight the signing of the exchange of Notes of yen loan projects worth ¥100.3 billion pledged by Japan in fiscal year 2016 for four projects in Vietnam, namely the Maritime Security and Safety Capacity Improvement Project, the Ben Tre Water Management Project, the Bien Hoa City Drainage and Wastewater Treatment Systems Project (Stage 1), the Hoa Lac Science and Technology City Development Project (phase II), and three grant assistance projects in the fields of disaster prevention and human resources development, as well as and the loan Agreement for the Hoa Lac Science and Technology City Development Project.

14. Both leaders shared the view that Japan would provide support to expediting high quality, large scale and critical national infrastructure projects, including the North-South expressway and the metro railway. They confirmed that both sides continue to cooperate in implementing the Hoa Lac Science and Technology City Development project. Both sides would continue the discussion on the expressway project connecting Hanoi (Vietnam) and Vientiane (Laos). The Vietnamese side welcomed Japanese companies’ wish to participate in the Long Thanh airport project, the underground arcade in Ben Thanh and the BRT bus system in Binh Duong province.

15. Both leaders confirmed their willingness to make efforts to facilitate procedures to allow exportations of Japanese citrus fruit into Vietnam and Vietnamese lychee, longan fruit into Japan and to proceed cooperation in protection of geographical indications.

16. The Japanese side confirmed its support for Vietnam in implementing plans of the six selected industries in Vietnam's Industrialization Strategy as outlined in the Vietnam-Japan Cooperation Framework until 2020 with vision to 2030, in a mutually beneficial manner, as well as organizing a working group for the effective implementation of the Strategy and that Japan would consider training advanced engineers for the six industries in the Industrialization Strategy. They confirmed to strengthen cooperation in the energy sector, including the construction of high-efficient and environmentally compliant coal-fired power plants as well as the application of new liquefied natural gas technology. Both leaders will also make efforts to promote negotiations towards prompt commencement of commercial operation of three BOT projects of coal-fired power plants. Both leaders will intensify cooperation on energy saving and power grid development.

17. The Vietnamese side will consider and realize concrete and strong measures consistent with the World Trade Organization (WTO) Agreements for the purpose of sustaining and expanding domestic production of Complete Build Units (CBUs) as first priority. Both sides will establish a working group and develop concrete measures incorporated in an action plan by the end of this year. The Japanese side confirmed its support for Vietnam’s automobile and supporting industries.

18. Both leaders shared the intention to coordinate closely to improve the investment environment in Vietnam through the implementation of the 6th phase of the Vietnam-Japan Joint Initiative on improving the investment climate and legal system, strengthening the governance and restructuring of Vietnamese State-Owned Enterprises with ensuring the information disclosure by companies. Both leaders expressed their wish to promote more investment from Japanese companies into Vietnam and to promote public-private partnership (PPP) projects.

19. The Vietnamese side confirmed that Japan is one of the cooperation partners in the field of peaceful use of atomic energy.

Agriculture, environment, climate change response, science and technology, education and training, justice, information and communications technology and construction

20. Both leaders decided to promote cooperation for comprehensive development of the agriculture, forestry and fisheries sectors in Vietnam, to continue working closely to implement the "Japan-Vietnam Medium-Long Term Vision on Agricultural Cooperation", and organize the 4th Japan-Vietnam Agricultural Cooperation Dialogue as a high-level meeting in 2017, and to consider mutually beneficial cooperation such as Japanese investment into clean and high-tech agriculture in Vietnam.

21. Both leaders welcomed the renewal of the Memorandum of Cooperation on Low Carbon Growth for the Joint Crediting Mechanism for the period from 2016 to 2020. They shared the intention to maintain close collaboration in the environment, climate change responses, hydro-meteorology and natural resources, the environment and marine biodiversity research and surveillance. They also shared the intention to facilitate cooperation in waste management, including waste-to-energy, building on the achievement of cooperation in developing waste management laws and regulations. The Japanese side is committed to supporting Vietnam in dealing with climate change, drought and saline intrusion, working with Vietnam to find long-term and fundamental solutions and considering utilizing ODA in this regard.

22. Both leaders shared the view to further promote collaborative activities in such research fields as space and healthcare, including infectious diseases.

23. Both leaders shared the intention to promote cooperation in the field of information and communications technology, especially cooperation in telecommunication and its cyber-security, frequency and postal services by utilizing such schemes as Joint Working Groups. Acknowledging the importance of the wireless information transmission system for aeronautical and maritime transport safety, both leaders will promote the study of possibility of cooperation in establishing the High Frequency Radio Monitoring System.

24. Both leaders shared the intention to promote cooperation on human resources development under the Industrial Human Resources Development Initiative as well as by utilizing the Japan-Vietnam University and “Innovative Asia.” As for Vietnam’s efforts for administrative structure reform and training of future leaders, the Japanese side stands ready to provide training opportunities for more than 800 officials for the next five years through master’s and doctoral courses at Japanese universities and short- and medium-term courses in Japan and Vietnam.

25. Both leaders shared the intention to cooperate to enhance Japanese-language education and expand the Japanese education model, and to promote inter-university exchanges between the two countries.

26. Both leaders welcomed the newly-opened Japan Student Services Organization (JASSO) office in Hanoi and will promote cooperation on student exchanges and distribution of information on studying in Japan. Both leaders will also cooperate in setting up KOSEN (NIT) office in Hanoi which will contribute to the improvement of quality of vocational education in Vietnam.

27. Both leaders welcomed the active participation of Vietnamese Technical Intern Trainees in Japan and the signing of the Memorandum of Cooperation on the Technical Intern Training Program, and confirmed the intention to properly implement the Technical Intern Training Program to transfer technical skills from Japan to Vietnam, in accordance with the new Act on Proper Technical Intern Training and Protection of Technical Trainees that will come into force in November 2017. Both leaders will also work closely to promote cooperation for the appropriate implementation of technical intern training and to hold periodical working level meetings to address various issues surrounding the Technical Intern Training Program.

28. Both leaders welcomed a steady progress of dispatching and accepting Vietnamese candidates for nurses and certified care workers to Japan based on the Economic Partnership Agreement between the two countries, and will cooperate for its smooth and appropriate implementation.

29. Both leaders shared the intention to continue legal and judicial cooperation by effective implementation of the existing programs and projects, and to proactively study the possibility of bilateral agreements on mutual legal assistance on criminal matters and on transfer of sentenced persons.

30. Both sides shared the intention to strengthen comprehensive cooperation in urban development, especially effective implementation of eco-cities, smart cities, and Transit-oriented Development (TOD) integrated cities in line with Japan’s models, to promote investment cooperation in urban renovation and development and to transfer technologies in water, sewage and solid waste treatment.

Cooperation in culture, sports, tourism, people-to-people exchange and exchange between localities

31. Both sides shared the intention to work closely to step up their cultural cooperation and people-to-people exchange, to further cultural exchanges through the co-organization of exchange activities to promote each country's people, culture, and arts, and to promote mutual understanding of each other’s culture, tradition and history. Both sides also shared their desire to continue cooperation and exchanges between them according to WA Project as well as Japanese language education.

32. Both leaders welcomed the signing of a Memorandum of Cooperation on sports cooperation to strengthen the cooperation towards the Tokyo 2020 Olympic and Paralympic Games within the framework of the “Sport for Tomorrow” program.

33. Both leaders shared the view that tourism cooperation in such areas as in enhancing destination marketing initiatives of each country, providing technical assistance and developing workforce skills should be promoted with a view to further encouraging two-way tourist exchanges, in a consistent manner with the Memorandum signed among the Vietnam National Administration of Tourism, the Japan Tourism Agency and the Japan National Tourism Organization (JNTO).

34. Both leaders highly valued the recent developments in the cooperation among their localities as an effective channel for substantive cooperation that further deepened bilateral cooperation. Prime Minister Shinzo Abe reaffirmed that he would encourage Japanese localities to establish and enhance comprehensive cooperation with Vietnamese localities, thereby promoting investment and technological transfer from Japanese localities to Vietnam.

Towards the 45th anniversary of the Vietnam–Japan diplomatic relations

35. Both leaders confirmed that they would coordinate closely to successfully organize activities commemorating the 45th anniversary of the Vietnam-Japan diplomatic relations, and further strengthen people-to-people exchanges such as JENESYS (Japan-East Asia Network of Exchange for Students and Youths) and “SAKURA Science Plan (Japan- Asia Youth Exchange Program in Science)” in order to promote mutual trust and understanding between the people of the two countries and lay a solid foundation to further promote future friendship and cooperation.

Strengthen cooperation at international and regional forums

36. Both leaders reaffirmed their commitment to stepping up their extensive collaboration and cooperation at regional and international forums such as the UN, the Asia-Pacific Economic Cooperation (APEC), the Asia-Europe Meeting (ASEM) and other regional mechanisms such as the East Asia Summit (EAS), ASEAN 3 (APT), ASEAN-JAPAN, ASEAN Regional Forum (ARF), ASEAN Defense Ministers’ Meeting Plus (ADMM ), the Expanded ASEAN Maritime Forum (EAMF), among others, in order to make active and constructive contribution to the maintenance of peace, stability, cooperation and development in the region and the world.

37. With the establishment of the ASEAN Community, both leaders expressed their determination to strengthen cooperation to enhance the connectivity of ASEAN, a massive market of 600 million consumers, and reduce the development gap within ASEAN through Japan's continuing support of the implementation of the 3rd Phase of the Work Plan of the Initiative for ASEAN Integration (IAI) and the Master Plan on ASEAN Connectivity (MPAC) 2025 and through relevant initiatives including Quality Infrastructure Investment.

38. Both leaders sent their congratulations on the occasion of the 50th Anniversary of ASEAN. Prime Minister Shinzo Abe reaffirmed Japan's strong assistance to enhance ASEAN’s centrality, unity and solidarity. Both leaders shared the view that Japan and ASEAN will work together to reinforce ASEAN's integrity as partners sharing fundamental values, expressed through the rule of law, and to maintain peace, stability and prosperity in the region.

39. Both leaders noted with satisfaction the positive outcomes in the relations and cooperation between Japan and the Mekong countries across multiple fields such as politics, economy, development cooperation, contributing to the maintenance of peace, stability and prosperity of the region. They reaffirmed the intention to further advance the Mekong-Japan cooperation in areas such as development of quality infrastructure, human resources, climate change response, and water resource management. They shared the view to further promote the Japan-Mekong Connectivity Initiative and the Mekong Industrial Development Vision to promote robust and effective connectivity in the region. They also reconfirmed the utmost importance of sustainably developing and managing the Mekong River, and of close cooperation between the Mekong-Japan cooperation mechanism and regional and international organizations, particularly, the Mekong River Commission (MRC).

40. Prime Minister Shinzo Abe confirmed his commitment to supporting Vietnam comprehensively for the successful hosting of the 2017 APEC Year. Both leaders will collaborate in creating new dynamism in such areas as deepening regional economic integration, fostering sustainable, innovative and inclusive growth, enhancing food security and sustainable agriculture, and strengthening Micro, Small & Medium Enterprise’s (MSME) competitiveness and innovation, human resources development in the digital age, supporting industries.

41. Against the backdrop of mounting anti-globalization and protectionism in the world, both leaders reiterated the matters relating to free trade and protectionism as stated in the G7 Leaders’ Communiqué in May 2017 and the 2016 APEC Leaders’ Declaration and reaffirmed that free and fair trade and investment are an important driver for the global economy and decided to work together in promoting open and free trade and investment. They are determined to promote discussion on the Regional Comprehensive Economic Partnership (RCEP) with the aim to promptly reach a modern, comprehensive, high-quality and mutually beneficial agreement under ASEAN leadership. They recognized that RCEP’s market access commitments, rules, and cooperation will deepen regional economic integration and promote supply chain growth. They reaffirmed the balanced outcome and the strategic and economic importance of Trans Pacific Partnership (TPP), not only to its members but also to the Asia-Pacific. On that basis, both leaders shared the view to cooperate in the discussion among TPP members to bring the comprehensive, high-quality Agreement into force expeditiously.

42. Both leaders shared the view that maintaining peace, stability and cooperation in the South China Sea plays an important role to regional and global peace, stability and prosperity. Both leaders expressed deep concern over the complex developments that have been taking place in the South China Sea. Both leaders urged the parties concerned to refrain from taking unilateral actions, including militarization, that change the status quo and further complicate or expand disputes in the South China Sea, stressed the importance of maintaining peace, maritime security and safety, freedom of navigation and overflight, self-restraint, and full respect for legal and diplomatic processes, settling all disputes through peaceful means on the basis of international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS), and full and effective implementation of the 2002 Declaration on the Conduct of Parties in the South China Sea (DOC) in its entirety, and promptly concluding an effective Code of Conduct in the South China Sea (COC).

43. As the maritime countries facing vast oceans, both leaders stressed their commitment to promoting the freedom of navigation and overflight and unimpeded commerce, emphasizing that maintaining and strengthening a free and open maritime order based on the rule of law is a cornerstone of the strategic interests for the stability and prosperity of both countries and the international community as a whole. They underlined the importance of ensuring a stable, free and open, rules-based order across the Indo-Pacific region and beyond. In this regard, Prime Minister Shinzo Abe expressed Japan’s intention to further promote bilateral cooperation to enhance connectivity of ASEAN and the region through relevant initiatives including the Free and Open Indo-Pacific Strategy and Quality Infrastructure Investment. Prime Minister Shinzo Abe also expressed his intention to contribute even more proactively in securing peace, stability and prosperity of the region and the international community under its policy of “Proactive Contribution to Peace” based on the principle of international cooperation, including “Legislation for Peace and Security”. In this context, Prime Minister Nguyen Xuan Phuc welcomed Japan’s active contribution to peace and development in the region and the world as well as constructive initiatives, legislations and policies that aim at securing economic prosperity, maritime freedom and safety in compliance with the UN Charter and international law, and on the basis of respect for national independence and sovereignty, for peace, stability, cooperation and development of the region and the world.

44. Both leaders expressed serious concern about the recent complex developments on the Korean Peninsula, including the nuclear tests and missile launches by the Democratic People’s Republic of Korea (DPRK). Both leaders reiterated the positions expressed in the relevant UNSC resolutions and ASEAN Statements, and underlined the need to refrain from actions which might escalate tension, and to fully and seriously comply with the obligations under relevant UNSC resolutions, including Resolution 2356, and the commitments in the 2005 Joint Statement of the Six-Party Talks towards denuclearization of the Korean Peninsula. They supported peace and stability in and denuclearization of the Korean Peninsula. They opposed the acts of abductions, and shared the intention to enhance cooperation in order to immediately resolve the abductions issue - an issue of humanitarian concern for the international community.

45. Both leaders shared the intention to promote cooperation for international peace and security, and reaffirmed the importance of UNSC reform to make the organization more in line with the reality of the international community in the 21st century and to strengthen its legitimacy, effectiveness, representativeness and transparency. Accordingly, they shared the intention to actively cooperate towards early reform through efforts to reach concrete progress in the Intergovernmental Negotiations. They also reached a decision to promote cooperation at international forums and organizations and to positively consider supporting each other at elections of international organizations. Prime Minister Nguyen Xuan Phuc once again expressed his commitment to continue supporting Japan to become an UNSC permanent member.

46. Both leaders underlined the importance of the sustainable use of marine living resources including cetaceans. The Vietnamese side informed that it was actively considering and proceeding with necessary procedures towards early joining the International Whaling Commission (IWC).”

VNA
http://english.vietnamnet.vn/fms/go...ms-agree-on-orientations-for-future-ties.html
 
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Vietnam renews India oil deal in tense South China Sea

HANOI/NEW DELHI (Reuters) - Vietnam has extended an Indian oil concession in the South China Sea and begun drilling in another area it disputes with China in moves that could heighten tensions over who owns what in the vital maritime region.

The moves come at a delicate time in Beijing's relations with Vietnam, which claims parts of the sea, and India, which recently sent warships to monitor the Malacca Straits, through which most of China's energy supplies and trade passes.

Vietnam granted Indian oil firm ONGC Videsh a two-year extension to explore oil block 128 in a letter that arrived earlier this week, the state-run company's managing director Narendra K. Verma told Reuters.

Part of that block is in the U-shaped 'nine-dash line' which marks the vast area that China claims in the sea, a route for more than $5 trillion in trade each year in which the Philippines, Brunei, Malaysia and Taiwan also have claims.

A senior official of ONGC Videsh, who asked not to be named because of the sensitivity of the matter, said interest in the block was strategic rather than commercial, given that oil development there was seen as high-risk with only moderate potential.

"Vietnam also wants us to be there because of China's interventions in the South China Sea," the official said.

Vietnam's state-run PetroVietnam declined to comment on the concession, which was first granted to India in 2006 but had been due to expire in mid-June.

Conflicting territorial claims over the sea stretch back many decades but have intensified in recent years as China and its rivals have reinforced their positions on the rocks and reefs they hold.

Far to the south of block 128, drilling has begun in a block owned jointly by Vietnam's state oil firm, Spain's Repsol and Mubadala Development Co of the United Arab Emirates.

Deepsea Metro I, operated by Odfjell Drilling Ltd., has been drilling in the region since the middle of last month on behalf of Spain's Repsol SA, which also has rights to neighbouring block 07/03, Odfjell said.

Odfjell declined to comment on the specific location of its vessel, but shipping data from Thomson Reuters Eikon showed it was in oil block 136/3, which also overlaps China's claims. Odfjell's Eirik Knudsen, V‎ice President for Corporate Finance and Investor Relations, referred further queries to Repsol, which declined to comment. PetroVietnam made no comment.

Competing Maritime Claims
When asked about the activity, Chinese foreign ministry spokesman Geng Shuang said China opposes anyone "carrying out unilateral, illegal oil and gas activities in waters China has jurisdiction over".

"We hope the relevant country can act on the basis of maintaining regional peace and stability and not do anything to complicate the situation," he told a briefing in Beijing.

Chinese General Fan Changlong cut short a visit to Vietnam and a friendship meeting at the China-Vietnam border was cancelled around the time the drilling began.

The centuries-old mistrust between China and Vietnam is nowhere more evident than in their competing maritime claims, despite their shared communist ideology and growing trade.

Asked about the most recent drilling, Vietnamese officials said their Chinese counterparts have started raising concerns about cooperation with both Repsol and ExxonMobil Corp. of the United States, which is developing the $10 billion "Blue Whale" gas concession off central Vietnam.

They said Chinese officials also expressed concern at Vietnam's evolving security relationships with the United States and Japan, both of which have offered moral support for its South China Sea claims and help for Vietnam's coastguard.

Tensions with China were being contained, however, and had not yet reached crisis proportions, they said.

"We know they are unhappy again, but we are resisting the pressure – it is a traditional part of our relations with Beijing," one official said privately. "Other parts of the relationship remain strong."

Underlining the relationship between India and Vietnam, Vietnamese deputy prime minister Pham Binh Minh told a forum in New Delhi this week that India was welcome to play a bigger role in Southeast Asia - and specifically the South China Sea.

Hanoi's growing defence and commercial ties with India are part of its strategy of seeking many partnerships with big powers while avoiding formal military alliances.

The pace has picked up since Indian Prime Minister Narendra Modi's administration took office in 2014 and sought to push back against China's expanding presence in South Asia by raising its diplomatic and military engagement in Southeast Asia.

India is providing naval patrol boats, satellite cover to monitor Vietnam's waters and training for its submarines and fighter pilots - more military support than it is giving to any other Southeast Asian country.

On the agenda are transfers of naval vessels and missiles under a $500 million defence credit line announced last year.

Next week, the navies of India, the United States and Japan will hold their largest joint exercises in the Bay of Bengal.
 
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Vietnam need India military training??? as much as India need training from Bangladesh.

it should be Indian officers to come to Vietnam to be trained, not vice versa.
 
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Vietnam need India military training??? as much as India need training from Bangladesh.

it should be Indian officers to come to Vietnam to be trained, not vice versa.
To train what? Guerilla and Jungle warfare? Neither of our enemies we share border have 'forest cover' in border.
 
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Vietnam briefs investors on proposed key features of special economic zones

Investors will be permitted to lease land for up to 99 years and operate casinos

  • By Tuoi Tre News
    August 11,2017, 12:44 GMT+7
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Minister of Planning and Investment Nguyen Chi Dung speaks at the M&A Forum in Ho Chi Minh City on August 10, 2017.
The three special administrative and economic zones Vietnam plans to develop will incorporate truly specific policies and mechanisms, such as legalized casino operations and longer land leasing terms, in order to attract international investors, the country’s investment minister shared at a forum on Thursday.

The special zones – Phu Quoc, Van Don, and Van Phong – will function as a new model for the Southeast Asian country to stimulate growth and lure foreign investment,
said Minister of Planning and Investment Nguyen Chi Dung at the 2017 M&A Forum in Ho Chi Minh City.

The Phu Quoc special administrative and economic zone will be developed on the namesake island off the southern province of Kien Giang, whereas the Van Don zone will be located in the northern province of Quang Ninh, and the Van Phong zone will be developed in the south-central province of Khanh Hoa.

Vietnam’s government passed a resolution granting in-principal approval for the plan in December 2016.

The three administrative and economic zones will each incorporate a set of specific policies and mechanisms into its development guidelines relating to land use, immigration, finance-banking, and infrastructure development.

These guidelines will be used as a vehicle to develop each area to its fullest potential and create a magnet for international investment.

Vietnam has also geared up efforts to create specific laws governing special administrative and economic zones, with the investment minister briefing the forum attendees on the most recent updates.

Laws relating to special administrative and economic zones will allow the areas to function with “advanced and greater constitutions than other domestic localities, and compete with international peers,” Dung underlined.

The special economic zones promise to create a new playground for international businesses to freely develop their investments, according to the minister.

One of the key proposals of the draft law is that the People’s Council, the law-making and supervision organ of Vietnam’s cities, districts, and provinces, will not have jurisdiction over Van Phong, Van Don, and Phu Quoc.

“There will be only an Administrative Committee governing these special economic zones,” Dung elaborated.

“Law-making and supervision tasks will the duty of the People’s Council in the respective provinces where they are located.”

This organization will ensure smooth paperwork for investors by removing unnecessary intermediate stages from the process.

The investment ministry has also suggested that investors in the special economic zones be permitted to lease land for up to 99 years, compared to the current limit of 50 years, or 75 years for certain exclusive cases.

“A 99-year term will help the Vietnamese economic and administrative zones stay competitive with their international peers,” Dung said.

The three special economic zones will also allow casino operations, another scheme Vietnam hopes will help lure foreign investors.

“The three special areas will of course not house only gambling facilities but also other economic sectors, depending on their own conditions,” Dung noted.

“For instance, Van Phong, one of Vietnam’s busiest transit seaports, could focus on logistic development and Van Don on healthcare, education, and biology.”

The investment ministry is waiting for approval from the law-making National Assembly for its propositions.

“We want to make real changes and these models are proposed using lessons taken from other international special economic and administrative zones,” the minister said.

http://tuoitrenews.vn/news/business...features-of-special-economic-zones/40956.html
 
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Vietnam need India military training??? as much as India need training from Bangladesh.

it should be Indian officers to come to Vietnam to be trained, not vice versa.

Usually the training is technically related, such as weapons operations, repairs and services. Vietnamese Navy is relatively inexperienced when it comes to ships like the Kilo-class submarines.
 
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Usually the training is technically related, such as weapons operations, repairs and services. Vietnamese Navy is relatively inexperienced when it comes to ships like the Kilo-class submarines.

you're right.
 
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Chinese FDI in Vietnam: Growing Economic Ties, Despite Strains

Posted on September 25, 2017 by Vietnam Briefing

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By: Dezan Shira & Associates
Editor: Koushan Das

For the past 25 years, Chinese investments in Vietnam and bilateral trade between the two nations has grown steadily despite issues such as the South China Sea and increasing cooperation between Vietnam and countries such as US, India, and Japan. The Chinese mainland has emerged as the eighth largest investor in Vietnam, with the actual FDI much higher if we include their affiliates in Hong Kong and Macau. Over 60 percent of all Chinese FDI focuses on manufacturing and processing, with a majority of the investment focused on labor-intensive industries.


Trade agreements

Both countries are parties to the ASEAN China FTA, which created the largest free trade area in the world. Apart from ASEAN China FTA, both countries are currently negotiating the Regional Comprehensive Economic Partnership (RCEP), which includes the ASEAN member states, and the six states with which ASEAN has existing free trade agreements, which include Australia, China, India, Japan, South Korea, and New Zealand.

Bilateral trade

Trade volumes between the two nations have increased significantly in the last few years. Vietnamese exports to China increased at a faster pace in comparison to its imports. According to Chinese statistics, its exports to Vietnam grew by an average annual rate of 18 percent during 2010-2016, and its imports from Vietnam grew by 26 percent.

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Major imports

Over 70 percent of Chinese imports into Vietnam are intermediate goods such as machinery, electrical and electronic products, textiles and fabrics, base metals and minerals, and chemicals. In the last 2-3 years, other goods such as plastic and clothing products for consumer purposes also accounted for a small part of Chinese imports in Vietnam.

In the first seven months of 2017, China has emerged as the largest exporter to Vietnam at US$ 31.59 billion, an increase of 15.3 percent compared to the same period in 2016. The below information is the percentage share of different product in total imports.

VN-Imports-from-CN.jpg


Major exports

Major Vietnamese exports to China include machinery, electrical and electronic products which account for more than half of the total exports. Other products include food items, cotton, fuel, and oil products.

Vietnam’s exports in the first seven months of 2017 stood at US$ 15.62 billion. The below information is the percentage share of different product in total exports.

VN-Exports-to-CN.jpg



Chinese FDI in Vietnam

China’s first FDI in Vietnam was in 1991 when a Guangxi enterprise (China) joint ventured with a Vietnam group to open Hoa Long restaurant in Hanoi. Since then, Chinese FDI has increased, although not consistently. For example, China’s FDI in Vietnam in 2012 was US$ 312 million, while in 2013; it rose to US$ 2.3 billion. China’s 2016 FDI in Vietnam accounted for 7.7 percent of the total FDI at US$1.88 billion.

Cumulative FDI

As of March 2017, the cumulative Chinese FDI stood at US$ $11.19 billion for 1,616 active projects. The average capital per project was US$6.9 million, much lower than the overall average. Chinese investment is mostly in the processing and manufacturing industry, accounting for 61.4 percent of total investment capital, followed by production and distribution of electricity, gas, and water, and air conditioning at 18.2 percent and real estate at 5.6 percent.

Binh Thuan province attracted the most FDI, with total registered investment capital of US$2.03 billion, for only seven projects, accounting for 18.1 percent of the total FDI from China.

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Market entry strategy for FDI firms
accounting for 18.4 percent of total registered capital to be in the form of build-operate-transfer (BOT), build-transfer (BT), and build-transfer-operate (BTO) contracts. In a close second, joint ventures, business cooperation contracts, or joint stock companies account for 15 percent of the total registered capital. In terms of FDI, investments from affiliates in Macau and mostly Hong Kong have outweighed FDI from the Chinese mainland.

Commercial presence

There are numerous ways to establish a commercial presence in Vietnam.

  • Representative Office
This is the most common form of presence in Vietnam for foreign companies, particularly those in the first stage of a market entry strategy. A representative office cannot conduct commercial or revenue generating activities.

  • Limited-liability Company
It may take the form of either:
  • A 100% foreign-owned enterprise; or
  • A foreign-invested joint-venture enterprise between foreign investors and at least one domestic investor.
  • Joint-stock Company
A joint-stock company is a limited liability legal entity established through a subscription for shares. By law, this is the only type of company that can issue shares. A joint-stock company may be either 100 percent foreign-owned or a joint venture between both foreign and domestic investors.

  • Partnerships
A partnership can be established between two individual general partners.

  • Business Cooperation Contract (‘BCC’)
A BCC is a cooperation agreement between foreign investors and at least one Vietnamese partner in order to carry out specific business activities.

  • Public and Private Partnership Contracts
A Public and Private Partnership (‘PPP’) contract is an investment form carried out based on a contract between the government authorities and project companies for infrastructure projects and public services.

Major FDI projects

Overall, the Chinese mainland is the eight largest investor in Vietnam, with the US$1.76 billion Vinh Tan 1 power plant being the biggest investment. In addition, other major projects include the US$400 million Viet Lan Tire Plant in Tay Ninh province and the US$337.5 million Vietnam-China Mining and Metallurgy project in Lao Cai province.

In the textile industry, Texhong Group built a US$300 million fiber plant in Quang Ninh Province in 2013. To further their investments in 2014, they also started building the Texhong Hai Ha Industrial Zone with a total investment of US$215 million and another US$300 million for a few more textile plants in the zone.

Some of the other major projects in Vietnam include the Hung Nghiep Formosa Dong Nai Textile Limited Company project in Nhon Trach Industrial Park, Viet Luan tire project in Tay Ninh province, Tan Cao Tham rubber processing plant, the Vietnam-China Mining and Metallurgy project in Lao Cai province, the Thai Nguyen iron and steel plant extension, the Cat Linh- Ha Dong urban railway project, and the Da River water pipeline project.

Vietnam’s Competitive Advantages

Vietnam’s current competitive advantages are very similar to that of China’s around 10 to 15 years ago; low wage, low-tech, and export-focused manufacturing. As China moves up the value chain, Vietnam is taking its place and emerging as an alternative for investors.

Major advantages in Vietnam include:

  • Low minimum wages
According to Trading Economics, the average minimum wage in 2016 in Vietnam was US$136/month, while in China it was much higher at around US$300/month. Wage difference has led numerous labor-intensive industries such as textiles and footwear to shift their manufacturing hubs to Vietnam;

  • Trade agreements
Chinese investors increased their investments in the last few years in the anticipation of the Trans-Pacific Partnership, which was unfortunately canceled under the new US administration. However, while China pushes for their own China EU FTA, the EU Vietnam FTA is expected to be ratified, hopefully by next year, offers investors an alternative way to reach the EU market;

  • Infrastructure and connectivity
Vietnam has over 100 ports throughout the country, with major ports being the Hai Phong, Da Nang, and Ho Chi Minh City. In anticipation of growing exports, ports in Vietnam are currently undergoing upgrades to increase capacity.

In addition, the railway infrastructure also is a major component of the economy. In the first quarter of 2017, 166,200 tons of freight was shipped by rail on the trans-border line, which was a 66.2 percent increase from the same period last year, and a 12-year record.

Around 60 percent of the rail network in Vietnam are in the Northern provinces, with several new railway lines proposed.

The need to do more

In the last two decades, Vietnam has implemented numerous investor-friendly reforms to attract investments, but going forward it needs to do more. The country needs to develop their support industries and move up the value chain. The government has introduced incentives policies for the development of support industries and aims to meet 45 percent of local production demand by 2020, and 70 percent by 2030.

Vietnam also needs to move up the value chain and not just highlight itself as an alternative to China. The country lacks R&D investments and high-skilled labor and needs to make changes in the education sector, IP protection laws, and high-tech investor-friendly policies for a sustainable growth. As of now, manufacturers investing in Vietnam still have to rely on the Chinese mainland or other neighboring regions for high-tech production processes.

Future of bilateral relations

Going forward, China has to focus on their existing projects in Vietnam to gain consumer confidence to be successful in the Vietnamese market. Recent China-backed projects in areas such as urban railway, metals, textiles, and energy have suffered from quality concerns, delays, and cost overruns leading to public scrutiny.

In spite of numerous geopolitical differences, both countries will continue to focus on increasing economic cooperation. Vietnam is seeking more investments in high-tech industries, support industries, renewable, clean energy, and tech transfer; however, China will be pushing for a more balanced trade and Chinese companies will continue to invest in industries such as agriculture, aviation, environment, high technology, transport, tourism, and healthcare. Economic exchanges will continue to act as a stimulus for the revival of bilateral relations.
 
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Major railway in western China starts operation

Around China

A major railway line connecting Lanzhou, capital of northwest China's Gansu Province, with the southwestern metropolis of Chongqing was put into operation on Friday.

Xinhua丨Updated: September 30, 2017

A major railway line connecting Lanzhou, capital of northwest China's Gansu Province, with the southwestern metropolis of Chongqing was put into operation on Friday.


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The K4515 train departs from Chongqing heading to Lanzhou on Sept. 29, 2017. A major railway line connecting Lanzhou, capital of northwest China's Gansu Province, with the southwestern metropolis of Chongqing was put into operation on Friday. [Photo/Xinhua]

At 8:38 a.m., the K4515 train departed from Chongqing heading to Lanzhou. Some 31 minutes later, the K4518 train left Lanzhou for Chongqing.


It took nine years to build the Lanzhou-Chongqing railway line, which has a total length of 886 kilometers.

Trains on the line, which runs through Gansu, Shaanxi and Sichuan provinces, stop at 15 stations.

Travel time between Lanzhou and Chongqing is expected to be cut from 20 hours to around 12 hours, with trains taking just 11 hours to travel between Lanzhou and Chengdu, capital of Sichuan Province.

The railway line runs through some of the most complex mountainous terrain conditions, said Zhen Bingguo from China Railway First Survey and Design Institute Group.

The first international cargo train also left Lanzhou Friday, traveling via the new railway line then continuing to arrive at south China's Guangxi Qinzhou Free Trade Port, from which the cargo will be sent to Vietnam, the Philippines and Indonesia.

A total of 30 cargo trains will make the journey between the two cities during the initial operation stage, carrying 60 million tonnes of goods each year. The travel time for cargo trains will be cut from 2.5 days to just one day.

The first domestic cargo train traveled from Chongqing to Lanzhou on Friday carrying 290 vehicles produced in Chongqing.

Chongqing is the largest car production base in China and the railway will save about 300 yuan (US$45) per car transported to Lanzhou, said Kong Xiangning, general manager of Chongqing Zhongji Automobile Logistics Company.

The Lanzhou-Chongqing railway line runs through 13 national-level and four provincial-level poverty-stricken counties and will play a crucial role in the development of these regions.
 
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Big data report on Belt and Road progress released
By Guo Yiming
China.org.cn, October 12, 2017

The report is internationally sourced from 500 billion rows of data from over 200 companies, 800 think tanks and 1,000 media outlets in over 60 Belt and Road countries to assess progress of the China-proposed initiative in eight aspects.

According to the report, cooperation between China and the Belt and Road countries is increasing, with Russia, Pakistan, Kazakhstan, Thailand and Vietnam ranking as the top five partners.

http://china.org.cn/china/2017-10/12/content_41721382.htm
 
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Big data report on Belt and Road progress released
By Guo Yiming
China.org.cn, October 12, 2017

The report is internationally sourced from 500 billion rows of data from over 200 companies, 800 think tanks and 1,000 media outlets in over 60 Belt and Road countries to assess progress of the China-proposed initiative in eight aspects.

According to the report, cooperation between China and the Belt and Road countries is increasing, with Russia, Pakistan, Kazakhstan, Thailand and Vietnam ranking as the top five partners.

http://china.org.cn/china/2017-10/12/content_41721382.htm
US say No to TPP, so CN belt and road plan could be a good choice...
 
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US say No to TPP, so CN belt and road plan could be a good choice...

In fact Vietnam is one of the leading countries (one of the five) that invested in Belt and Road, as per a big data report released just yesterday.

VCP is smart and pragmatic. Good for everybody.
 
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