Mar 06 (News On Japan) - Japan has agreed to invest up to 20 billion dollars in low-carbon energy projects in Vietnam. This comes amid a regional push to reach carbon neutrality in the coming decades.
The countries held a meeting in Hanoi on Wednesday. They decided Japan would help fund 14 projects, including wind power plants. The Japan Bank for International Cooperation and private companies will lead the investments.
Power shortages are common in Vietnam, particularly in the north. There are growing concerns this is hindering foreign investment in the country.
"We will create significant opportunities for cooperation in economy, trade and investment between businesses in our two countries," said Vietnamese Industry and Trade Deputy Minister Nguyen Hoang Long.
"Japan wants to provide maximum support so Japanese firms can take advantage of these opportunities and participate in Vietnam's decarbonization market," said Japanese Ambassador to Vietnam Ito Naoki.
Vietnam aims to achieve carbon neutrality by 2050. It was also one of the countries--along with Japan--to adopt measures to accelerate decarbonization efforts at last year's Asia Zero Emission Community meeting.
But pursuing this goal while also expanding its power supply is a major challenge.
