Vietnam Seeks Japanese Investment in Oil, Gas Sector

Vietnam is looking for Japanese partners to develop as many as 20 offshore blocks in the South China Sea, Nikkei has reported.

The firm may seek as much as $24.8bn in new upstream and downstream investment to boost oil and gas production.

Vietnam is looking for foreign investment in energy sector to overcome its persistent supply shortage in the face of rising demand.

Investments from Japan makes sense as it needs more gas as demand has soared  following the 2011 Fukushima nuclear disaster, strong yen makes overseas investments cheaper and Japan is already invested heavily in Vietnam.

Presence of Japanese helps Hanoi in strategic terms as it asserts claims over disputed waters in the South China Sea where China has started exerting influence.