Japan, Vietnam agree to sign pact on nuke cooperation, develop rare earth

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HANOI, Oct. 31 Kyodo -
Japan and Vietnam agreed Sunday to work toward the early signing of a bilateral
nuclear cooperation pact, with Japan securing contracts to build two nuclear
power plants, paving the way for Japanese firms to export nuclear power
generation technologies to the fast-growing economy.
Japanese Prime Minister Naoto Kan and his Vietnamese counterpart Nguyen Tan
Dung also agreed during their bilateral talks in Hanoi to join hands in
developing rare earths, which are resources vital for making high-tech goods.
Kan and Dung met after they wrapped up a series of summits involving the
Association of Southeast Asian Nations, of which Vietnam is a part, and its
dialogue partners including Japan.
''These projects symbolize the start of a close relationship that sees (the two
nations) as strategic partners over the long run,'' Kan said at a press
conference with Dung.
Dung was quoted by a Japanese government official as saying that Vietnam made a
''major political decision'' in agreeing to jointly develop its rare earth
resources in a bid to ''push forward both nations' strategic partnership.''
The two leaders welcomed the conclusion of the negotiations on a nuclear
cooperation agreement and expressed hope that it will be signed ''at the
earliest possible date,'' according to their joint statement.
Japan and Vietnam officially launched negotiations in September to sign the
pact, which will set a legal framework for the peaceful use and transfer of
nuclear power-related technologies, materials and equipment.
Vietnam also decided to award to Japan contracts to build two of four nuclear
power reactors in Ninh Thuan Province the country plans to construct by the
early 2020s to deal with its power shortage.
While there is no definite decision yet, in principle, Japanese firms with the
relevant expertise -- Hitachi Ltd., Toshiba Corp., and Mitsubishi Heavy
Industries Ltd. -- with their respective partners are the likely candidates to
take charge of such construction projects, Japanese government officials said.
Kan welcomed Vietnam's decision to choose Japan and promised Japan's aid in
conducting feasibility studies, low-interest and preferential loans, as well as
the use of its technology.
Japan, which has been making efforts to boost exports of infrastructure, has
similar civilian nuclear cooperation pacts with the United States, Britain,
Canada, Australia, China, France and the European Atomic Energy Community.
As part of efforts to boost economic cooperation between the two countries, Kan
also conveyed Japan's intention to provide yen loans worth about 79 billion yen
to five projects including the Lach Huyen Port Complex, which will be developed
by a consortium of Japanese and Vietnamese companies.
Vietnam's decision to pick Japan as its ''partner in investigation,
exploration, exploitation and processing of rare earths in Vietnam'' was also
another highlight of the Kan-Dung talks. Japan, for its part, promised to
provide financial and technical support for the rare earths development, the
statement read.
With the agreement, Japan has secured exploitation rights at the Dong Pao mine
in Lai Chau Province in northwestern Vietnam, the officials said.
Japan's move to join hands with Vietnam on developing rare earths reflects its
efforts to veer away from its heavy reliance on China for such resources
following China's de facto embargo on rare earth exports amid a diplomatic spat
with Tokyo.
The row resulted in countermeasures including restrictions of rare earth
shipments from China, which accounts for about 90 percent of the global output
of rare earth metals. China has denied imposing any embargo.
==Kyodo
2010-10-31 16:14:25