Vietnamese Ambassador to Japan Pham Quang Hieu (Photo: baoquocte.vn) Hanoi (VNA) - Vietnamese Ambassador to Japan PhamQuang Hieu talks to the Vietnam News Agency about the potential of greencooperation between Japan and Vietnam as the two countries celebrate the 50thanniversary of diplomatic relations this year.
Reporter: After fifty years of nurturing and fostering ties, thefriendship and cooperation between Vietnam and Japan have consistently grownand developed comprehensively across all sectors. What stands out most to youin this relationship?
Ambassador Pham Quang Hieu: I am deeply honoured to have been appointed by President Vo VanThuong as the Ambassador Extraordinary and Plenipotentiary of Vietnam in Japanduring the 50th anniversary of our diplomatic relations. Both nations arecurrently engaged in close coordination and joyful preparations for a series ofactivities to commemorate this significant milestone.
Having assumed my role for four months now, I have had theprivilege of meeting the King, welcoming the family of Crown PrinceAkishinonomiya to the Embassy, engaging with Japan's Government and NationalAssembly leaders, and visiting various Japanese regions. During theseencounters, I have keenly sensed the proximity, authenticity, and the sharedaspiration of Japanese leaders, businesses, and the people to foster stro ngerties with Vietnam.
On a personal note, my connection with Japan holds a specialplace in my heart, as I had the opportunity to study there from 2002 to 2004.The dedicated guidance of professors and the generous cooperation and supportof Japanese friends enriched my experience and greatly contributed to my growthas an individual. This period allowed me to gain profound insights into life inthe land of cherry blossoms, ultimately fostering a deeper understanding of thegenuine and trusting bond between the peoples of Vietnam and Japan.
This unique experience has equipped me with valuable knowledgeand perspectives, enabling me to effectively fulfil the tasks andresponsibilities entrusted to me by the Party and State. I am committed to furtheradvancing the friendship and cooperation between Vietnam and Japan, buildingupon this strong foundation.
Reporter: How do you assess Japan's recent support for Vietnam inachieving the goals outlined in the National Strategy on Green Growth for theperiod 2021 - 2030, with a vision to 2050, which includes reducing greenhousegas emissions per GDP, greening economic sectors, promoting sustainableconsumption, and ensuring a green transition built on principles of equality,inclusion, and resilience?
Ambassador Pham Quang Hieu: In October 2021, the Prime Minister promulgated Decision 1658/QDapproving the National Strategy on Green Growth for the period 2021-2030, witha vision to 2050, which lays out four specific goals, including reducinggreenhouse gas emissions per unit of GDP, fostering sustainability in economicsectors, encouraging sustainable consumption patterns, and facilitating a greentransition guided by principles of equality, inclusion, and resilience. Toeffectively transition to a green economy and fulfil our commitments made atCOP 26, Vietnam has formulated the National Strategy and Action Plan on greengrowth for the 2021-2030 period, with a vision toward 2050.
In recent times, Vietnam and Japan have demonstrated activecooperation and mutual support in implementing their respective internationalcommitments. Substantial progress has been achieved, further reinforcing themomentum for the realisation of our green growth objectives. This cooperationis expected to be enhanced in the future, as both nations possess significantpotential in this field.
At the highest levels, in both multilateral and bilateralforums, Vietnam and Japan have pledged their support for one another. They havealso actively engaged in dialogue and cooperation mechanisms focused on energytransition, exemplified by the adoption of the Just Energy TransitionPartnership (JETP). This declaration, ratified by Vietnam and internationalpartners (IPG), including Japan and members of the G7 industrial developmentgroup, the European Union, Denmark, and Norway, marks a significant step in Vietnam’scommitment to green energy transition. Vietnam stands as the third country,following South Africa and Indonesia, to endorse the JETP.
By implementing the JETP Declaration, international partnershave committed to assisting Vietnam in refining its policies to attractinvestments in energy conversion and efficiency improvements, power gridinfrastructure enhancement, and vocational education and training. As part ofthis commitment, the partners have pledged an initial amount of 15.5 billion USDover the next three to five years to facilitate Vietnam’s equitable energytransition. In line with this commitment, the Japanese international bank,JBIC, has already pledged support amounting to 300 million USD through Vietcombankfor the implementation of renewable energy projects. This collective effortunderscores Japan's steadfast support for Vietnam’s green growth agenda andreflects the strong commitment to this vital initiative.
Vietnam is also a staunch supporter of Japan's Zero EmissionsCommunity (AZEC) initiative. In early March this year, Deputy Prime Minister TranHong Ha led a Vietnamese delegation to attend the "Asia's Net ZeroEmission Community" Conference organised by Japan. During this conference,the two nations concurred in adopting a Joint Statement outlining the futuredirections for collaborative efforts in achieving an inclusive, equitable, andsustainable energy transition in Asia while ensuring affordability. Currently,Vietnam and Japan are actively advancing the establishment of a joint workinggroup dedicated to the practical deployment of AZEC, intending to devisespecific and effective plans and actions.
Furthermore, the Japanese Minister of Economy, Trade, andIndustry announced the country's continued commitment to providing financialand technical support for Vietnam’s endeavours in energy transition through theAsian Energy Transformation Initiative (AETI). This support extends to theintroduction and utilisation of zero-emission fuels like ammonia, hydrogen andbiomass.
At the grassroots level of implementation, numerous ministries,departments, and localities have been proactive in garnering Japaneseparticipation and support for activities aimed at fulfilling green growthcommitments. A recent illustration of this commitment is evident in Ho Chi MinhCity's preparations to host the City Economic Forum in September 2023, with thetheme "Green Growth – A Journey towards Zero Emissions". TheVietnamese Embassy in Japan has played a pivotal role in mobilising andinviting nearly 20 Japanese delegates representing various sectors, includingmanagement, research, and business, to actively participate and deliverspeeches at the forum's plenary session on green growth and the circulareconomy.
Moreover, a growing number of Japanese enterprises are activelyseeking Vietnamese partners to expand their collaborative efforts in technologytransfer, promote circular economy practices, and leverage microbiological technologyto process organic waste and sludge into raw materials for fertilizerproduction. This initiative is critical for ensuring a stable supply foragricultural production and food security, exemplifying the deepeningcooperation between the two nations in the pursuit of sustainable,environmentally friendly practices.
Reporter: How do you assess the current flow of Japanese investment intoVietnam, and in the Ambassador's view, what steps should Vietnam take toattract high-quality investment from Japan for the successful implementation ofits green growth strategy?
Ambassador Pham Quang Hieu: As of now, Japanese investment in Vietnam encompasses more than5,000 active projects, positioning Japan as the third-largest investor among143 countries and territories. The total investment capital from Japan exceeds 70billion USD, constituting more than 16% of the total foreign direct investment(FDI) in Vietnam. This figure, while seemingly modest, holds significant weightwhen examined within the context of the investment landscape of Japaneseenterprises. Japanese investors have predominantly focused on crucial sectorswithin Vietnam’s economy, including industry, manufacturing, processing,infrastructure, energy, and services.
The inflow of investment from Japan has made a substantial andsustainable contribution to Vietnam’s socio-economic development. It has playeda pivotal role in enhancing competitiveness within the spectrum of FDI capitalstreams. Numerous prominent Japanese corporations have established a formidablepresence in Vietnam, offering reputable, competitive products characterised byhigh technical sophistication.
These investments have played a crucial role in reducingreliance on imported goods, augmenting exports, and fostering economic growthin Vietnam. Japanese investors have consistently demonstrated their commitmentto adhering to legal requirements, valuing the welfare of their workers,fostering a sense of community, and prioritising environmental protection.
According to JETRO's findings from its 2022 survey of Japanesebusinesses investing abroad, more than 60% of these enterprises have expressedtheir intentions to expand their operations in Vietnam within the next one totwo years. They have lauded the Vietnamese market for its high growth potential,acknowledging the prospect of revenue growth through market expansion andincreased exports. It is noteworthy that 59.5% of these businesses anticipateprofitability, reflecting a 5.2% increase compared to the figures from 2021.
In light of these developments, Vietnam should continue itsefforts to create an enabling environment for investment, emphasising theattractiveness of its market for Japanese investors. Additionally, nurturing abusiness-friendly ecosystem and offering incentives to encourage sustainable,green growth-related investments will play a pivotal role in attractinghigh-quality Japanese investments that align with Vietnam’s green growthstrategy.
Hence, to attract "green" investment inflows,particularly high-quality foreign investment, the Vietnamese Government hasbeen steadfastly committed to enhancing the business and investment climate. Itis actively implementing a set of integrated solutions, including (1)stabilising the macro-economy, (2) infrastructure development; (3) policyenhancement: Continual improvement of the policy framework and institutions,with an emphasis on enhancing implementation efficiency, administrative reform,and simplifying procedures related to investment, business, and land matters; (4)human resource development; (5) creating an investor-friendly businessenvironment; (6) researching and revising preferential mechanisms and policiesto attract foreign investment while navigating the landscape of global minimumtax regulations, all while ensuring compliance with international commitmentsand striking a harmonious balance of interests between parties; and (7)intensifying dialogue mechanisms with associations and businesses to promptlyaddress challenges and concerns encountered by businesses throughout theirinvestment journey, and steadfastly continuing to implement the "Vietnam -Japan Joint Initiative" mechanism.
Along with these, we should also foster knowledge exchange andlearning experiences with Japanese agencies and organisations in key areas suchas high technology, modern technology, clean energy, and renewable energy.Additionally, we can explore methods for transitioning from traditionalproduction to green production to reduce carbon emissions, aligning with thegoal of achieving carbon neutrality by 2050. Concurrently, Vietnamese provincesand localities should prepare favourable conditions by investing ininfrastructure, maintaining clean premises, and ensuring a skilled laboursupply./.
